An initial coin offering (ICO) is a strategy for a startup company to raise capital for a startup company. It is the simpler version of an initial public offering (IPO) since there are no barriers or any form of restrictions to entry for a firm. An ICO is ideal for a Blockchain firm that is planning to embark on a mission to offer a solution to problems in mainstream industries such as finance, insurance, banking, e-commerce, music, and entertainment, etc.
There are important steps that developers need to follow when creating an ICO Token. These factors determine the overall success and realization of goals. They include;
Presentation Of The Idea On A Whitepaper
Blockchain business developers have to conceptualize a concrete solution to far-reaching problems that impact the general population in areas such as real estate, hotel and tourism, literature publication, and any other field. The paper should then outline a detailed solution to the problem while indicating the architecture of the Blockchain network within which the operations will be transacted.
Other information that the whitepaper has to convey include; the team behind the project, the roadmap, a disclaimer, token information, and the solution of the project to challenges. An ideal whitepaper is rich in graphical presentations.
Roadmap And Strategy
Although the information is presented on a whitepaper, developers have to clearly envision a roadmap that appeals to stakeholders who will come in as partners by participating in an ICO. Some of the details that a roadmap showcases include; the dates for the different stages of crowdfunding, dates for idea conceptualization and team selection, a timeline for the Blockchain and distributed Applications to be live, etc.
Coin development is one of the most important steps in the ICO creation process. This service is offered by various token developer platforms. There is various option that an entrepreneur can use such as creating own Tokens on a Blockchain, creating a Token with autosend features on Blockchain, and creating a crowd sale Coin with deployment mechanisms for a successful ICO.
It is critical at this stage for developers to selected the Blockchain technological standards that best suit their needs. These options include Stellar Lumens, Komodo dragon, Ethereum, Ripple, etc. Ethereum is one of the most preferred due to its ERC20 that allows Tokens to be supported by Ethereum wallets.
Tools also matter in this critical process that requires precision and caution. The tools deliver services such as; programming language coding, Blockchain contracts, testing and building a Coin, simulating a Blockchain node, and testing and deploying contracts on a Blockchain.
It is very critical for an ICO developer to undertake code reviews before starting to accept contributions in exchange for tokens to ensure that the network is secure, efficient, and meets the highest standards for customer experience.
Having an active community and an experienced ICO and Blockchain marketer is a must-have for an ICO to be successful. The communities can be stated o interactive social media sites such as Twitter, Reddit, Telegram, BitcoinTalk, etc. On the other hand, the function of marketers is to carefully recraft concepts in a format that appeals to prospective contributors.
Considering The Future
Since a Token is meant to be timeless, other factors such as exchange listing assistance, price volatility hedging, Blockchain software development, participation in Cryptocurrency associations, etc. have to be taken into consideration in the early stages of ICO Token creation.