How to Launch Successful ICO
We are riding in an era of Blockchains and crypto-world is the next frontier in finance and monetary services industry. Launching an ICO is just a task of few seconds but the challenges and the preparation are the deciding factors. Most of the ICO fails besides having an ingenious idea because they lack proper planning and promotional strategy.
Understanding an ICO
Just like an IPO, ICO Initial Coin Offering is a fundraising event more like a crowdsale. Here the company releases its own tokens known as ICO coins which are sold to the interested investors before their actual release in the market. The tokens are sold in exchange for Fiat money or popular cryptocurrencies (BTC, ETH,XPR etc). The funds collected via ICO are used for the infrastructure development of the project, staffing, promotion and marketing campaigns. This way the token holders get a stake in the ownership of the company as well. A successful ICO is not a single person task rather it’s a combined team effort.
Pre-Requisites before launching an ICO
Launching an ICO is a herculean task and requires a lot of homework. Here is a list of some essential pre-requisites which must be ensured before launching an ICO.
- Proper platform and back-end support
- Vivid roadmap and whitepapers
- Complying with all the legal formalities of that jurisdiction
- Maintaining and managing an Escrow Account
- Amiable public relations and right marketing
Apart from these, here I have jorted some tips especially for our readers after consulting the CEO’s of some successful ICOs.
1. Concise ICO Launch Design
The company launching the ICO must have a concise plan on how to utilize the funds and what share will be used where. All the compliance/KYC/AML screenings should be complete. The investors are interested only about the profit, so your whitepaper must indicate the profit making activities clearly.
2. Developing a Whitepaper
An ICO without a whitepaper is considered immature. You must have a working whitepaper ready atleast at the time of Pre-ICO. All the technical considerations, working and token usage should be clearly mentioned in the whitepaper. The whitepaper should be convincing that the investors are making a right and informed decision.
3. Token Generation
The company must know what is the hard and soft cap related to their crypto-project. A company making an ICO over 70% of tokens should reconsider their decision. This will make the investors think that you are totally dependent on the funds you receive from ICO and will not survive in case the ICO fails.
4. Bounty shares
Social media is the key player in pitching your ICO sales. Keep apart some share for the bounties as well. This will ensure maximum participation as the project will be receiving maximum traffic from social media websites only. Conduct events, webinars ad road-shows so as to promote your vision and ensure the genuinity of the project.
5. Well Driven website
The website should community everything which an investor may think. Create a separate FAQ section in which you can give proper explanation and questionnaire (commonly asked questions) regarding the working process of the project.