- Why projects may want to launch an ICO
- How can you launch an ICO?
Are you planning to launch an ICO? If yes, you might find it challenging to figure out how to start the process, especially if you’re new to this industry. A new ICO coin launch helps projects get funds, allowing them to develop their programs.
The strategy is popular and has attracted many companies. With the high competition, you must develop a unique project to attract many investors to your business. There are specific steps to follow when you want to launch your own ICO. Here, we explore the essential steps to follow in a crypto ICO launch.
Why projects may want to launch an ICO
Both project owners and crypto investors benefit from an ICO coin launch. Here are the benefits you enjoy when you launch an ICO:
- Decentralization: ICOs stay on blockchain technology and can be available to many individuals globally. Potential investors only need to transfer their funds and buy the coins.
- Transparency: Contributors can participate in the ICOs without the need to know or contact project founders. On the other hand, it’s challenging to participate in the traditional funding models without a connection with one of the project founders. So, ico token launch is open to any individual who wants to invest. Investors are required to keep an eye on the upcoming projects at the pre launch ICO stage.
- Different costs: the token price varies from project to project. This attenuates the risks while expanding the chances of making vast profits. Furthermore, projects can benefit from the massive amounts of money they collect through this technique.
- Reduced competition: some projects find it challenging to secure funding through traditional models. This can be attributable to their location or lack of appeal for various reasons. To overcome these challenges, such projects can launch an ICO, which enables any business to get funding.
How can you launch an ICO?
Launching an ICO has become more complex and requires much time and effort. A series of scams related to ICOs has attracted the attention of regulatory bodies. Furthermore, some countries have banned ICOs to protect their citizens. Due to high sensitization, investors now know how to invest in the new ICO coin launch. So, to succeed in this area, you must know how to launch your own ICO. Here are the steps to follow:
Determine whether a crypto ICO launch is the best choice
ICO funding is one of the best methods to raise funds. However, not all projects are suitable for this technique. So, evaluating whether an ICO coin launch is your best bet is critical. Also, before you conduct an ico token launch, it’s essential to understand the laws regarding ICOs.
Know the digital currency market
Before you launch an ICO, it’s essential to know how the crypto market functions. Also, it pays to have a basic understanding of purchasing cryptocurrencies and blockchain technology.
Craft an exceptional whitepaper
Currently, investors are more informed and know how to identify the best ICO projects. A few investors are willing to risk jumping into a project and buying tokens they know nothing about. True, marketing buzz can help attract audiences. But investors want to see if they invest their resources in viable projects. And that’s how a whitepaper comes in handy.
A whitepaper offers objective information about your project. The document identifies the problem in the market, how to solve it, and the technology to adopt. Project owners should also inform readers about their token structure and what to expect at each phase. For example, you should explain the number of tokens to issue at the pre launch ico phase.
Investors make informed decisions based on the information you provide in the whitepaper. So, you must ensure that the document is professionally written. If you lack the skills to craft the paper, it’s advisable to hire a consultant to do it for you.
Understand the legal side of your project
Before you launch an ico, it’s vital to seek legal advice to ensure that you comply with the laws of the country your business is situated.
Failure to abide by the relevant laws may lead to prosecution and penalties different from country to country. The worst thing is that you might be classified as a terrorist if the radicals use your ICO. So, you need to avoid the danger and seek legal advice before you launch an ICO.
Choose the right team.
The success of your ICO launch largely depends on the expertise and experience of your team. Such a team can portray you positively, leading to the attraction of more potential investors. However, creating the best ICO team is a challenging aspect of your ICO launch. Remember, it’s critical to launch an ICO with a group that believes in your idea.
When describing each team member, ensure that you include their images and links to their LinkedIn profiles. This helps to ensure that the team is transparent and genuine.
Select the best blockchain network to launch an ICO
An essential step in your ICO launch is determining the platform to inaugurate your tokens. Many projects launch their tokens on Ethereum because of the platform’s capability to create digital agreements. However, it helps to consider the cost to launch an ico on this network. Ethereum uses a Proof-of-Work consensus mechanism. This agreement procedure gobbles up massive energy that leads to high gas fees. So, to solve the issue of cost to launch an ico, it’s advisable to choose Ethereum’s scaling solutions, such as Polygon and Loopring.
An ICO is one of the best techniques that blockchain-based projects use to fundraise. However, to launch an ICO is a daunting undertaking that requires time and experience. An experienced team can help you to conduct the launch successfully. The group follows the steps we’ve explored here.