Initial Coin Offering (ICOs) and token sales started gaining global attention back in 2017. And since then, they haven’t looked back!
But what is an ICO?
An initial coin offering (ICO) is a kind of capital-raising activity for any cryptocurrency or blockchain-based environment. ICOs are a popular way to raise funds for products and services usually related to cryptocurrency. One might also view ICOs as an initial public offering (IPO) that makes use of cryptocurrencies.
Now you must be wondering How to start or launch your own ICO successfully. Right?
Being a leading ICO development company, we’ll take you through all that you must know to build your own ICO in 2023…
How To Start a Successful ICO?
Building a successful ICO is never easy. While it’s true that some businesses have launched an ICO in the past with little to no work, the ICO market has progressed significantly in a very short time span.
Numerous countries around the world have started taking action against ICO fraud as a result of the recent wave of incidents. Some nations have even gone so far as to outright outlaw ICOs. Additionally, investors have grown tired of ill-conceived ICOs and now generally steer clear of them.
Hence, there are certain things you need to keep in mind before start building an ICO. Let’s go through everything in detail.
Is Launching an ICO the Right Thing For You?
The first thing to figure out is that do you actually need to start an ICO.
To come to a final decision, you must take into account the following factors:
- Should you even use blockchain? Despite being a promising technology, blockchain is not a panacea for all business issues. Are there other technologies that you could use to deliver the specified business functionalities? If you require a decentralized P2P network with a distributed ledger, blockchain is the solution for you.
- Do you have to provide a cryptocurrency token? Can you design an effective economic framework for these tokens? A cryptographic token makes sense for you if you can.
- Is the use of cryptocurrencies legal where you live? If it isn’t, you must first make the necessary legal procedures before organizing your ICO campaign. Do not forget that cryptocurrency regulations are dynamic and changing.
Understanding The Cryptocurrency Market
The majority of the essential elements of how the cryptocurrency market functions should already be understood by businesses that have created their own cryptocurrency or invested in cryptocurrencies like bitcoin.
Generally speaking, investors are probably already a part of the bitcoin community and are therefore already aware of the process of purchasing digital assets.
Therefore, you must have a solid understanding of the workings of cryptocurrencies as well as the kinds of selling features that appeal to users as investors. Knowing your ICO’s unique selling propositions (USPs) will make sure that it is a success.
Create a Flawless White Paper
Investors of today expect comprehensive, well-written ICO white papers. Even while a small percentage of investors continue to invest in cryptocurrency on the basis of nothing more than buzz in the market, few people are ready to take that chance in light of recent high-profile frauds.
A decent white paper should promote your ICO without coming off as promotional material. A white paper should really be more like a scientific study in that it should first clearly state the issue at hand and then offer a solid, step-by-step solution.
Investors are likely to assume your paper is a fraud if it appears to be entirely marketing-focused and lacks any substantive information.
Things to Consider During White Paper Creation
- The white paper must only contain entirely original content.
- Your technology solution must be explained in the white paper without utilizing technical lingo.
- To let potential investors know your project’s launch date, you must display a roadmap for your blockchain product.
- You must demonstrate how you are reducing risks associated with the new technology if you are employing a relatively new flavor of blockchain technology.
- Your white paper should outline your current efforts if you are already working on developing your product. Additionally, you want to make the source repository available so that possible investors can assess your development.
Remember, the goal is to address all the issues your ICO will solve, your business model, marketing plan, your goals and pricing clearly.
Get the Right Legal Advice
It is important to acquire qualified legal advice prior to creating your own ICO to ensure that you are in complete compliance with the laws of the nation in which your business is headquartered.
If your ICO is found to be used by any illegal organization, the penalties for breaking these rules vary from country-to-country and may even include being placed on a terrorist watch list.
Before moving further, get sound legal counsel to ensure that you can successfully launch an initial coin offering. To assist you in drafting the terms and conditions for your ICO, you can also employ the counsel and services of your legal counsel.
Partner with a Reliable ICO Development Team
In addition to having the knowledge and experience necessary to effectively launch an ICO, your ICO development team must also be able to convey confidence to investors.
The most challenging aspect of any ICO launch is certainly assembling the greatest development team. You need people committed to the success of your project and are willing to invest their time and reputations in it.
To make your ICO seem open and genuine, you must include images of every member of the team. A wonderful suggestion is to include a photo of your staff as a whole in your office setting, as this serves to reassure potential investors that your team is real.
Choose the Best Platform For Your ICO Launch
Next to think about is the token technology you’ll employ for your ICO. Due to Ethereum’s applicability for this use case, the vast majority of businesses decide to launch an ICO on this platform.
The Ethereum platform contributes in making ICO launches simple and easy because it uses blockchain technology to build digital contracts. Making Ethereum ERC-20 Tokens that can be utilized for your ICO just takes a few minutes.
There are multiple resources available to assist you in organizing a token sale. You will therefore need to conduct a study to identify the one most appropriate for you.
Another choice is to get enlisted with the aid of a quality ICO tool.
For example, BlockStarter lets you share your ICO concept with a worldwide blockchain community. These companies and individuals can then decide if they wish to jump on board and invest in your ICO.
Plan for Core Audit
The durability of your goods will interest many of your investors. Blockchain protects against hacking, although it differs from smart contracts in some ways. Smart contracts that function on a blockchain are susceptible to hacking attacks.
Thus, create a strong plan to audit your smart contracts.
Safeguard Your ICO Against Cyberattacks
There is nothing more important than safeguarding your ICO against cyberattacks. Your entire project will almost probably be doomed by this, and investors will flee for the hills. The security breach of an ICO can even cost in millions.
Thus, it’s worthwhile to spend more on a cybersecurity service if your team is lacking a security expert. These companies are actually a highly cost-effective approach to build a successful ICO, given the amount of money involved and your reputation.
If you decide to work with a third-party company, you can mention them in your ICO literature to strengthen your credentials.
Price Your Token’s Value Sensibly
Consider both the total number of tokens you want to issue and the amount you hope to raise when determining the token’s worth. Generally, it is recommended to issue a greater number of total tokens while keeping the cost of each token lower.
Investors will be less likely to purchase more expensive tokens since they want to maximize their return on each token.
As an alternative, you can give up the fixed pricing model and sell your tokens at a variable price based on how many investors acquire them. Make a wise choice because each of these models has advantages and disadvantages.
Plan a Strong Marketing Strategy
You must already have a clear marketing plan designed to reach all the appropriate audiences with your ICO. Remember that there are hundreds of ICOs being launched every week, so you needs to stand out.
You should design an original and creative PR campaign that contains the following elements:
- An attractive, intuitive, and easy-to-use website
- An outstanding pitch deck that demonstrates why investors should purchase your tokens in detail.
- Supporting content to explain your ICO and its working more clearly, like a video for example.
- Well-executed Social Media Campaigns
- Ads and banners particularly targeted at potential investors’ websites
Again, if your team lacks knowledgeable professional marketing strategist experienced with ICOs, you should either employ one or hire a reputable marketing agency.
The Blockchain Market is forecasted to reach $28 Billion by 2025 and ICOs will play a major role in this.
And Investor confidence is the most important aspect for any ICO.
However, it can be challenging to get your target audience notice you. Your ICO has no chance if you don’t make sure that it solves each of the issues brought up in this post in a way that appeals to potential investors.
Any ICO’s planning and execution takes a lot of time. But when done correctly, the benefits can be enormous, ensuring that you raise enough money for your business to carry out whatever project it needs the ICO for.
If you any queries or doubts related to building an ICO, you can collaborate with our ICO development company now!
Here’s a Live Demo of our ICO Management Solution. Watch now!