Home Cryptocurrency How to Create Your Own ICO?
Initial coin offering (ICO) is quite a renowned phenomenon in the Blockchain community where utilization of cryptocurrencies has become predominant.
Generally, it is a fundraising mechanism where new projects sell their own underlying crypto tokens in exchange for other cryptocurrencies such as bitcoins or others. Perhaps, it is quite similar to that of the investors those who are purchasing shares of a company.
Because of the technology like ERC20 Token Standard, ICO has become easy to structure that really abstracts almost all the necessary development process required for the Initial Coin Offering.
Most initial coin offering works with the funds that are sent by investors in the form of either Bitcoins or any other cryptocurrency as well. This works with a mini contract to store the funds and distribute the value equivalent to the fund sent in the form of another cryptocurrency by the investors.
Initial coin offering is not an asset that can help in raise the money all of a sudden, therefore one should be assured themselves that ICO is suitable for their business. ICO is basically a long and costly process as it includes the registration in public offerings as well.
At the current scenario in the crypto world, ICO with informal standards are being adapted quite quickly, but one should make a suitable planning for clearance of whether it merges with the business model. Moreover, if the ICO is solely used for the trading purpose then it will crash as soon as it is launched in the market.
Many people often run after the raising of the capital and miss the fact that an ICO can be worked only if it is from a trusted or a well-known Build a robust and secure product that should be scalable on the Blockchain and this is the only way to publish the new ICO in the crypto world.
Moreover, most people go for the easy path that is launching a beta before conducting a sale of tokens, but without any equity investment, it is not safer at all. For achieving the best sale of token one must have a product and that product must use that specific token.
This is the root effort for making an ICO, moreover, it is considered to be the simplest part of the whole ICO process.
It's an asset that makes sure of the survival of your business as without this token one can't buy your product.
Tokens can signify any goods that are to be traded such as loyalty points, gold certificates, and digital coins etc.
These are the simplest part of the whole effective scenario as it is mostly similar to that of the shares of a company.
Waves and Ethereum platforms are some of the convenient methods that can help you to create own tokens without even creating a Blockchain.
The token sales are controlled by a minor contract called a smart A smart contract is moreover a computer program that can directly control the digital transfer between some parties that are eligible and has followed all the terms and conditions.
Before going for creating a token make sure about the amount you want to rise. Moreover, you must be clear about the number of Blockchains and Ethereum that shall be issued. Including this, you must also predetermine the number of tokens that are to be retained and the number that shall be sold within the Pre-ICO.
There shall be a need of issuing additional tokens and thus one should be sure that under what circumstances additional tokens shall be issued.
Initial coin offering generally refer to handling money of other people and thus one should be legally optimized to face any kind of circumstances in the future.
Ensuring the security and zero deception in any kind of utilization is the main objective of getting a legal coverage in this business.
The starting point of the Initial coin offering starts from the pre-sale as well as the legal planning process.
A formal legal opinion, as well as description, is needed to avoid any kind of trouble arising in the offering of the token to avoid any kind of problem from SEC.
There are mainly three reputed law firms in the crypto world namely Cooley, K&L Gates and Perkins Coie. These three law firms have extensive practice in the Blockchain as well as Cryptocurrency.
Cooley is one of the renowned law firms that use Simple agreement for Future Tokens (SAFT) that is an open source legal framework for all the available token sales.
One thing must be kept in mind is that the legal frameworks and all other necessary aspects vary from country to country. One must follow complying with the relevant laws and all regulations followed in a specific country.
Publishing is the backbone of any marketing strategy of any type of business model. This is considered the most important step probably in the ICO process.
Investors must know about one's token to invests and invest in it for further utilization. Majority of tokens that are available in the market are famous only because of the hype and buzz created in the initial days of launching that particular token. The hype of a particular token should be created by the genuine investor's community to support the product to a great extent.
Reddit: – It is the most renowned marketing channel that can help you to find the target investors. Although it may charge some money in return of the profits and the targeted investors, it seems to be quite reasonable.
Linkedin: – It is also the most used and well-known website that has tons of users all over the world. It can display thousands of investors throughout the world and moreover, it shows the relevant results and targeted investors those who can surely go through your description and prefer to invest in it.
Quora: – Many discussions take place in the Quora often with relevance to the several different ICO and some specific cryptocurrency. You can also participate in the discussions as well as link your own ICO landing page in it for some specifically targeted investors.
ICO calendars: – Publishing of an ICO takes different steps, but one of the most ideal ways to come in the eyes of a large number of investors is to appear in the top ICO lists that are created by Bloggers as well as many journalists after a serious analysis of that ICO.
There are other ways such as Facebook, paid media and Influencer marketing that can help to create hype for a specific ICO.
After the token has created a specific buzz with its name in the marker, you can get your token for exchange with other available cryptocurrencies such as bitcoins and others in the crypto world. Exchange of the cryptocurrency makes it available for a large number of people in the market for buying the products.
The best deals for exchanging are found on Coin market cap and best coin exchange that are available online. Moreover, the actual listing of an ICO may vary with respect to the sites.
A request for exchange of a token in the market may require to submit the coin name, coin trading symbol, coin logo, description of coin, compliance fee and source code that is reviewed by the third party. Getting listed in the well known ICOs list in Coin list will increase the chances of the success drastically.
Conclusion: – Initial coin offering is the best process to gain profits only if you are all set to face the consequences and have a clear idea on the business model as well as the whole ICO process starting from making the cryptocurrency to the publishing and exchanging.