Initial Coin Offering (ICO) - type of crowdfunding, which is usually being conducted with the utilization of cryptocurrencies. In addition, ICO is considered to be a great solution for both startups and investors - startups raise capital which is necessary for further development, investors get an opportunity to multiply their investments.
Blockchain stands for distributed ledger technology and technically can be described as a continuously growing list of blocks (records), which are internally linked between each other. Main advantages of blockchain are decentralization and transparency; these features broaden the utilization range of blockchain. Furthermore, blockchain technology is theof all existing cryptocurrencies.
Token (or coin) is a tradable and fungible representation of a certain asset or utility, created on the basis of the blockchain technology. Tokens can be divided into two main groups: utility tokens and security tokens. ERC20 is the most popular token standard based on Ethereum blockchain.
Tokenomics stands for the model of token’s operation within the project. In other words - all conditions of implementing the token within the ecosystem, which will let users to exchange goods or services comprised in this ecosystem.
ICO became one of the most widespread phenomena in 2017. Thus, crypto community collided with ICO conducted by businesses with different fields of operations. Mostly it is considered that ICO is a solution for projects from IT industry with the perspective product based on blockchain technology and faced the need to raise investments.
Scam is a definition of a certain startup or ICO which refused to meet its commitments or is suspected of fraud. This word is often used to define a suspicious project which can deceive its investors in future.
ICO should be conducted when there is a deep need for blockchain and crypto-based token. Preparation for the ICO starts with collecting all necessary information and precise analysis of the industry and its key players. Second step implies comparison of your idea with already existing products or services in order to prove its uniqueness. Then a strong ICO team should be assembled; usually it consists of developers, marketing specialists, community managers. The last, but not the least step is eventual start with a business plan.
The basis for the future ICO success is a good, innovative and original idea (preferably in the form of a working product) precisely described in business plan or white paper. The second significant factor is a solid team paired with advisory board filled with experienced professionals. The third component of successful ICO combines two things - starting budget and well-thought marketing campaign. For those who doesn’t have enough experience but have a breakthrough idea the best solution would be to find a verified and trusted ICO agency.
Detailed and well thought out ICO process is the key to success. Unfortunately, many startups make following mistakes before ICO launching:
White paper is an official document, which is created and issued by startups before ICO. This document contains all the necessary for the investors information about the upcoming project - its core idea, philosophy, team, road map and tokenomics. As far as white paper is the most important ICO document, it must be written precisely and In detail; thus, experienced professional’s assistance while writing white paper will increase chances to raise investments.
There are a lot of ICO support agencies, but choosing the appropriate one seems to be the real challenge. Only those agencies which have the real successful cases, broad experience and thorough approach can be fully trusted. Such agencies can be easily found on MoonRate.
Successful ICO is based on following points:
Common mistakes when running an ICO are:
Roadshow stands for a pre-appointed list of meetups in different geographical locations, which are being held in order to give potential investors a chance to find out more information about the project and tokens which will be released. Roadshow is considered to be on of the most effective promotion tools: it helps in information spreading, shows ICO team involvement and readiness to communicate offline and gives an opportunity to meet potential investors.
Token listing is a very powerful tool for its awareness enlargement. Nowadays there are a lot of websites which allow you to list your token; listing on these websites helps in token promotion and expands the information field around it.
The most important tool for increasing your ICO’s rating is information about it. You should be 100% transparent and ready to provide stakeholders with all required information and updates connected to your ICO or project. An, of course, strong connections with investors and strategic partnerships will be and advantage which will help to increase the rating of your ICO.
There are three main channels, which are considered to be effective enough in terms of investors search:
All channels mentioned above will help your to raise investments, but the combination of all three methods seems to be the most efficient.
An ICO pool stands for the assembly of several investment funds or individual investors, which are interested in investing in ICO.
There are two types of ICO pools:
The core difference between these types lies In the management system. Trustless pools use smart contracts in order to ensure that no party has direct control over the funds. On the other hand, non-trustless pools don’t use smart contracts and have managers who are responsible for funds distribution and placing them in ICOs.
Continuous development and improvement are the basic post-ICO activities. Of course, you need to support and expand the information field around your ICO, provide investors with all required information and polish communication strategy in order to find new partners.Finding the specialized agency which is focused on post-ICO services (listing on exchangers, PR, marketing, branding, partnership management, legal and finance consulting, etc.) would be a great solution.
Common post-ICO mistakes made by companies are following:
Listing of the token on the exchange can increase its price by 25%; thus, you shouldn’t disregard this opportunity. But, in the other hand, listing is considered to be a complicated procedure with some important condition to be fulfilled:
The procedure of listing on big and small crypto exchanges differs a lot. In case of small exchanges it is usually enough to provide it with the token address (and it must be checked on Etherscan), website and a small description. Big exchanges have a more complex procedure which can be found on the website. In addition, you’ll have to pay a fee, the amount of which vary and depends on the exchange’s policy.
Post-ICO activity seems to be one of the most important steps on the startup’s path. It includes such actions as:
You can find such agencies on MoonRate.
Market maker is a member firm of an exchange which buys and keeps securities, currencies or any other assets in order to organize their selling later. In this case market maker operate as independent participants of over-the-counter trades and maintain liquidity.