Before launching an ICO
, you might be interested in what an ICO
actually means. Here is a short definition.ICO list - The [ 10 BASIC TIPS ] and Advice to Start a Successful WHAT IS AN ICO?
ICO stands for Initial Coin Offering. It’s an event, sometimes referred to as ‘crowdsale’, when a company releases its own crypto coins or tokens with the purpose of funding. A company usually releases a certain number of crypto tokens and then sells those tokens to its intended audience, most commonly in exchange for Ether. So basically it is a new, worldwide, fast way to raise money for crypto-related startups. Currently, ICOs are not or hardly ever regulated.
In this post, I would like to go over 10 tips and offer advice before deciding to start an ICO.
In 2016 and in the first quarter of 2017 nearly all ICOs
could raise millions of dollars. However, around March 2017 things changed and tons of ICO appeared and many of them were SCAMS.
ICO sale1. Have a good Idea
Having a good idea is very important. Whether it's a new concept or improving an existing service or product, make sure it can be achieved.
You do not want to spend your time concentrating on something that is completely impossible to achieve. In other words, do not promise something that you can not deliver to your investors.2. Have an Idea? Then make a plan
Create a plan on paper that states what the project is about and what purpose the project will fulfill upon completion. Decide how much money will be needed to undertake your venture and how many virtual tokens your investors will keep for themselves. Decide what type of money will be accepted and how long your ICO campaign will run. Write down all the important details in order for your investors have a clear understanding of your business plan. Clearly, state how many tokens will be available and in distribution. Investors need to know how many tokens will be circulating and how many your company will be keeping for itself.3. Have your team
Even if you believe an ICO startup can be a one-man show, your chances of success will be a great deal less if you attempt to do it on your own. You need software developers, blockchain developers, website front end and back end developers. You need someone who will deal with people who are interested in your project and will ask you any questions they might have. You will need legal advisors and coworkers, depending on the size of your project and your startup budget.
ICO fundraising is done by a smart contract. You might have to hire an expert to write the smart contract for you. If you write it yourself, then at least have an expert to audit it. ICO calendar4. Spread your project
ico listingIt is important that from the very first day you build and support the community. Help them, share, contribute free and valuable information - be a part of the crypto community.
Use forums, social media, and communicate with them on different channels like Telegram, Reddit, and bitcointalk.org. List your ICO on as many platforms as you can. There are some good ICO calendars
and ICO listing websites such as www.listico.io
, coinschedule.com, icoalert.com. Use Google Adwords, Facebook Ads, and Twitter Ads if you can afford it. Try to grab as much attention as you possibly can.5. Prepare for the ICO launch
A new trend started in 2017 known as “PRE-ICO”. You can use a PRE-ICO, if you wish, to collect some funds before the main sale. Usually, during the PRE-ICO sale, you offer big discounts for your tokens compared to the main ICO sale
. For example with PRE-ICO, you sell your token for 1eth = 100 tokens. On PRE-ICO you give 30% discount 1eth = 130 tokens.
You can use the raised funds to advertise your main event.
6. Launch the ICO
Launch your ICO - if you get to this point, then basically your smart contract kicks in automatically on a certain day or at a certain block number. This is usually written in an open software platform or Ethereum network. People can send ether to your smart contract which is automatically calculating the ether then your token exchange rate issues the token and sends it to the buyer.
icos7. Monitor and communicate
During the ICO you should monitor if everything is going ok with the token issuing and the ether that has been collected is going to your address without any issues. Check if the smart contract address is correct. (Hackers and scammers could attack you from different directions)8. Secure your funds
When the ICO is over, secure your raised funds. If you have a really successful ICO you can raise millions of dollars and become a potential target of hackers.
9. Work on the project
This is very important. The raised funds are not the goal, they are the tools to achieve your idea and turn your idea into a real service or product. After a successful ICO
, you have the tools to make things happen. Hire people, innovate, test, and advertise. Use the raised funds to get things done.
ico10. Release as fast as you can
Don’t forget, you promised a service or product to your investors who helped you make it a success. They are waiting for you. Don’t let them down, release your product and make everyone happy.