An Initial Coin Offering (ICO) is an unregulated method which startups use to raise capital for their new digital currency ventures. It helps them to bypass standardized and rigorous capital-raising procedures required by the banks or venture capitalists.
Cryptocurrencies are no doubt the next frontiers in the world of finance and money. Launching an ICO can increase the chances of your cryptocurrency becoming successful. But you need to overcome the significant hurdles that have affected the industry in the past. This article will provide guidelines how you can launch an ICO as a new investor.
Decide Whether An ICO Will Work Well With Your Business
ICO’s are not ideal for all types of businesses. It should not be viewed as a tool for raising capital quickly and bypassing the rigorous process of obtaining capital by sale of shares. While that used to happen during the old days of ICOs, it does not apply today. You need to ask yourself whether your virtual tokens can work well with your business. If there is a higher demand for your token supported by a real utility (use-case scenario), then its price will increase once an ICO is launched.
Build a Product
This vital step is mostly ignored by new cryptocurrency investors who want to raise money quickly, but this is always the beginning of their downfall. Creating an actual product or service is an essential part of any successful ICO. Invest much of your time creating a robust, scalable and secure product or service and show how your products will change our world. Most startups will require money to start their business. But it requires capital to grow the business to make profits, and there are no exceptions. You must create a product that uses your token to act as a bait for new investors you want on board. You may seek ICO advisory services to help you develop a product or service that will meet your target audience needs. Visit our page https://kryptoia.com/ico-services/ for more information.
Create a Token
This is the simplest step in your ICO process. Building a token, means building assets that will make your business survive. They are synonymous to shares that are sold to raise capital for companies listed in the stock exchange. Before you create tokens, decide on the amount of capital, the number of tokens to issue and methods used to sell them. Hiring a dedicated ICO advisory team will help to create a token that will satisfy you customer’s needs.
Obtain Legal Opinion
You must be covered legally especially when you are handling investor’s money. The primary goal here is to ensure your token is not perceived as security and assuring your potential investors that you do not have any intention to deceive. You need a legal opinion to help you describe your token and explain how the potential investors will benefit from investing in it. But the laws regulating the launching of ICOs are not the same in all countries. Your legal advisers will assist your ICO to comply with all the relevant regulations and laws.
Write a Whitepaper
A whitepaper is a document that outlines the technical features of your product, problems it will solve, distribution strategy, the team behind your cryptocurrency and token description. It is a pitch that is aimed at attracting the attention of your potential investors. A whitepaper needs to be written well to provide all the details that your potential investors want to know at a glance. Hiring a good ICO advisory team can help you write a unique whitepaper that will attract potential investors.
Create Buzz and Community
This is the second crucial step in your ICO process. You will not achieve your token sale target unless you inform many potential investors about it. Most token nowadays are attaining their goals because of their first hype. This hype should be direct to a group of investors who want to support your virtual token and will stay with it for a considerable time before selling it.
Kryptoia is a leading ICO advisory services provider that will help your business to launch and market your ICO at affordable prices. They will give you tips on ICO fundraising, marketing strategy and product strategy that will help to scale your ICO business. Visit our website https://kryptoia.com/ today.