What is an ICO?
An ICO (Initial Coin Offering) is a form of crowdfunding where the company gains funding through their own crypto token. The organization sells all or a portion of their tokens to their public audience to receive their investments and capital.
First, Bitcoin was known as the first payment method. But, Ethereum has grown in popularity and became the most used payment method. On some occasions, you’ll see currencies such as the Litecoin, or the USD, or additional altcoins to help pay for ICOs.
Do you want to learn how to launch an ico? Keep reading.
How to Successfully Launch an ICO?
There are a lot of factors you have to consider when you make your ICO. Here are some things that we recommend that you use for your project:
Coins vs. Tokens?
Coins and Tokens are usually misunderstood as the same currency. But their differences lie in their functionality and purpose. A coin is used for simple transactions and is ran by its own blockchain. Its simplicity means that the coin is not reliant on multiple dynamic functions. The prime example of coins is Bitcoin, Monero, Bytecoin, Litecoin.
Tokens are multi-functional. They are programmed to use and store different levels of value. For instance, it can give their users memberships, voting rights, flight rewards physical items, virtual items. They can be almost anything and is programmed by a “smart-contract” blockchain.
Since you’re trying to make an ico launch platform, you should use tokens as your main crowdfunding source. They have more utility, and you can have it accomplish more features (services, fiat currency, etc.) than just using a regular coin.
Most ICOs fail because of badly written code. For example, this is shown through hackers exploiting the coin’s weakness in their programming and use it for their gain (ex: Binance $2 million hacks). Also, it can happen due to glitches in their smart contract.
Around 60% ICO projects use the ERC-20 token for this reason. It’s been tested and can be used without failure. The other 40% is ICOs that have their own blockchains and try using other platforms. If you’re trying to create your blockchain with your ICO, be cautious as its more difficult to create.
In order to solve this, you need to have a software development team that creates a high-quality application while also having the code be accepted by regulators. This ensures that your ICOs will get accepted and will be usable by the public.
Don’t Forget the Finances
On your white paper, you have to get your paper detailed on the financial aspects. You have to detail how much coins/tokens you’re giving to the public, how much you’re going to reserve for project development and other details that will get your investors interested in your ICO.
What’s the cost to launch an ico? For the first part of your project, you’re going to need around $135,000-$500,000 to create a good basic ICO. If you’re trying to get your token/coin onto the exchanges (Coinmarketcap, etc.) So make sure you have the budget and the capital to make your ICO successful in the future.
Your first ico launch will require a lot of research, development teams, and a strong community in order to be successful. Thus, take time in making a high-quality ICO so that it will be accepted and used by millions of users in the crypto world.