Token Sales: A step by step professional guide on conducting a crypto crowdsale

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Do you intend to run token sales soon? If yes, you need a professional guide on the steps to follow for a successful token sales program. Although ico token sale has become a popular fundraising technique, many people lack reliable information on how the procedure works. That said, we’ve put together a helpful guide to refer to when conducting your upcoming token sales.

What are Token sales?

Token sales is a procedure of creating and trading a new digital currency. While each Tokensale has its unique details, the Token sales procedure usually entails creating digital agreements on the decentralized ledger, generating, and offering the resulting tokens. You should involve a token advisory expert, professional investors, and lawyers for a successful process.

Steps for conducting Token sales process

Now that you’ve known what a tokensale is, let’s dive deep into the key steps to follow to conduct a successful upcoming token sales.

Create a powerful product

Many crypto project owners frequently gloss over this step when running their Token sales. If you ignore this step, your upcoming token sales will be headed for failure. So, you need to have a product that should use your token.

Develop a token

Token creation is central to your crypto project. Tokens represent something your company requires to meet its fundraising objective. In the blockchain ecosystem, tokens stand for fungible and tradable products, such as coins, IOUs, and in-game things.

An experienced token advisory agency will inform you that smart contracts regulate tokens. A digital contract is a computer code that has the conditions parties in a transaction must meet before the settlement sails through. Once all the concerned parties fulfill the conditions, the smart contract self-executes.

Get a legal and regulatory opinion on your token sales

It would help if you determined multiple things before running your presale token. The key ones include:

  • Whether your token is a utility or a security
  •  The architecture of your legal entity: some structures to consider include Delaware C-Corp, Swiss or Cayman Islands non-profit entity, or a mixture.
  •  Fundraising tools to use when approaching investors.
  • The KYC/AML procedure to use for security
  • The custodial entities for your token

The regulatory environment for token sales in 2022 keeps changing. Thus, if you intend to conduct an ico token sale, it’s critical to seek a legal opinion from an experienced lawyer.

By incorporating a legal perspective into your crypto project, you minimize legal battles that might emerge later. Furthermore, seeking a legal opinion from the beginning prevents the likelihood of plunging into hot waters with the law enforcement agencies.

Craft a whitepaper

Once you’ve understood the legal environment impacting your Token sales, the next step entails developing a whitepaper. The whitepaper is an essential document that explains your crypto project’s purpose, economy, governance, and technology. Regarding Token Sales, the whitepaper captures the following information:

  • Sharing of tokens to various participants
  • How and when extra coins will be availed
  • The fraction of tickets to be held by multiple stakeholders at the presale token and sale stage.
  • The blockchain consensus model to use, like Proof of Work (PoW) and Proof of Stake (PoS)

The whitepaper should be written like a scientific treatise and contain objective information that helps in decision-making. When crafting a whitepaper, your objective is to elaborate on the application of your token, and its distribution.

Communities are critical when popularizing blockchain projects. So part of your Token sales strategy is to create a community that supports your project. Also, communities are essential in spreading the message about your token pre sale 2022. Furthermore, communities act as an avenue where you create buzz around your Token sales. You can teach community members about the value of your tokens so that they hold them for a long time.

Create a community

A community will determine the success or otherwise of your project. So, it’s vital to ensure that you engage in it frequently. These days, multiple engagement techniques exist, including AMAs, contests, airdrops, etc. So, part of your presale token event is to engage your community.

Multiple social media platforms exist where you can create your project’s community. The main ones include Twitter, Facebook, Discord, Reddit, and Telegram. Each of these platforms has its features and restrictions. So, it’s vital to hire a Token sales agency to assist you in creating and managing a community.

Determine the technology to use

Your token sale 2022 will take place in the blockchain ecosystem. Because there are multiple forms of blockchains, it’s essential to choose the right one to power your token. Popular blockchains for token pre sale 2022 include Ethereum, Cardano, Hyperledger Fabric, Tezos, Bitcoin, Waves, and Stellar. Each blockchain technology has its pros and coins. So, it’s vital to do some background research to enable you to make an informed decision.

Decide the approach to use

Having understood your legal environment, you’ll determine the best approach to use when conducting your presale token. Here are the options you have:

  • Receiving finances from standard venture capitalists (VCs) initially
  • Providing tokens directly to specific community members

Before choosing the option above, it’s essential to seek the opinions of the two groups. And with your legal team, you can determine the best approach to use.

Although fundraising from VCs is slow, it creates trust that enhances the success of your Token sales. Furthermore, you’ll receive essential feedback in a secluded environment, helping you to create a powerful campaign for the upcoming token sales.

Execute your strategy

It’s essential to determine the number of token rounds for private, presale, and public sales. It would help if you also decided on the best discount structure for each round. Remember, you need to be impartial in your distribution of tokens. Avoid allowing a few individuals out there to purchase all the tokens.

A practical approach is to confirm the user’s identity before letting them buy. A simple technique to conduct the verification task is to develop a whitelist. Remember, some jurisdictions might prosecute you if you lack a KYC procedure when running token sales. Furthermore, some exchanges might exclude token sales that lack KYC.

List your tokens on exchanges.

When your tokens are ready for launching, it’s essential to contact exchanges to sell them on your behalf. This enables individuals to buy and sell your offerings on the platforms. You need to find the best exchanges that can list the tokens to boost success. An important step is to list your tokens on CoinMarketCap, a famous stock ticker for token sales.  The website features a long list of coins and their market value.

In the US, token sales frequently have a presale for approved buyers as per the SEC regulations. And this denies the public an initial opportunity to buy the token at an affordable rate.

Promote your tokens

When you’ve your tokens in the public, you must create buzz around it to attract sales. It would help if you created brand awareness about your token on various platforms and forums. Here are the famous platforms to use:

  • Bitcointalk forums
  • LinkedIn
  • Facebook
  • Twitter
  • Subscription lists

Most crypto investors and fans hang out on specific platforms, such as YouTube and Discord. Thus, ensure that you create a community on some of these sites.

Also, liaise with relevant crypto influencers who can market your token and teach people about its key benefits.

What enhances the success of your token sales?

There are specific things that have an impact on the success of your token sales. Here are the key ones:

  • Tokenomics: Before you launch your token sales, it’s critical to understand the objectives of your project and how to distribute the tokens to meet them. If there are clear benefits to buying the tokens, many users will buy and hold them. However, tokens whose motive is speculation are prone to wild swings. Also, the issuers should indicate the maximum token supply, the amount distributed to founders, VCs, and the firm itself.
  • Project team: When investors go through your whitepaper, they will check the project’s team, partners, and token advisory experts. Suffice to say, knowledgeable founders understand how to avoid hurdles that new projects encounter. Having experienced partners onboard validates your project in the market.
  • Whitepaper: You explain the objectives of your project on the whitepaper. While crafting the document, ensure that you guide readers on the issues in the market and how your project will resolve them. With clarity, investors will buy your tokens to support the project.

What is an IDO?

If you intend to raise funds on the decentralized ledger, you might search for the answers to this question ‘What is an IDO’. An IDO is a fundraising technique that helps projects raise funds through decentralized exchanges (DEX). Projects exchange their tokens for money from investors.

Projects enjoy multiple benefits from using the IDO model. The IDO model is affordable, has anti-whale measures, and offers immediate post-sale liquidity. The use of smart contracts in this model means that projects avoid costly intermediaries.

There are various steps to follow when launching an IDO. You need to create a whitepaper and explain the issue you’re resolving in the market. The whitepaper will explain the technology you’ll use in confronting the problems. Also, you need to establish the number of tokens to issue and how to distribute them to various parties.

Once you understand your token economics, you’ll identify your target audience and the blockchain technology to launch and issue your tokens. You also need to vet the IDO platform where to launch your project.

Best methods for ICO marketing

Once you create your crypto project, ICO marketing is the step to follow. Marketing your ICO project requires one to use multiple strategies. The task can be overwhelming and need the services of experienced marketers.

An essential technique of marketing your project is to create a community. The community helps to create hype around your project. You also make necessary announcements about your project through a community.

Airdropping is one of the powerful tactics you can use to create an ICO community. Besides persuading individuals to join your community, airdrops also motivate them to market your offerings on your behalf.

Another technique to use to promote your ICO is a PR campaign. It’s essential to find the best publications to distribute your press releases and other PR materials.

If marketing isn’t your forte, hiring an ICO marketing firm to help you is advisable. A marketing company has technology and resources to help you.

In the crypto industry, marketers recognize the importance of bounty campaigns. These campaigns incentivize people to undertake specific tasks related to your project. So, bounties should feature in your ICO promotion strategy.

ICO marketers should use other effective techniques, like influencers, networking, and video marketing. 

How to execute a crypto airdrops Reddit campaign

Multiple projects use crypto airdrops Reddit promotion. At the heart of the campaign is distributing free tokens to various wallets. The strategy is designed to attract many people to your project and create buzz around it. Through the campaign, you can enjoy multiple benefits, such as lead generation and rewarding loyal customers. You can only enjoy the perks of this strategy if you execute it properly.

First, a project should articulate its objectives for using this strategy. For example, it’s better to adopt a smart airdrop strategy instead of a mass one. The former helps to create a lean but solid community for your project.

Also, projects need to decide the number of tokens they wish to distribute before starting the campaign. Always know that too many tokens may inundate the market, hurting the value of your tokens. Conversely, giving a few coins to the market harms your campaign goals.

Furthermore, project owners should understand their target crowds. There are multiple tools you can use to gain insights into your audience. For example, a questionnaire can help gather critical information from your audience.

The other strategies include establishing a community and hiring a crypto agency. A community is essential because it’ll assist you in marketing your project. Finally, you should hire a crypto marketing company to assist you in implementing a crypto airdrops strategy if you lack marketing skills or time.

Steps to Launch a Token Generation Event

Before launching a token generation event, there are several elements that a person or team should consider to ensure that the process is seamless. The proposed token should have a product that adds value to it. Typically, tokens are used in exploring a system or a project. It is advisable to have a product that works with the token, and it should be on the blockchain. There are blockchain development and advisory firms like Tokenminds that can help with this. 

The next step is to create the token. This requires the help of a professional. It is wise to seek the advice of a legal professional concerning the legality of tokens in your region. A whitepaper is necessary as it is the tool used by the team to communicate with potential investors and users. 

  • Creating a whitepaper is necessary. 
  • Community development activities should begin while you liaise with exchanges for listing. 
  • The token should then be listed on exchanges. 
  • Press Release articles detailing the event should be published.
  • Email marketing strategies can be utilized. 
  • A website should be designed for your product and TGE. 

Begin the social media marketing processes to ensure that a buzz is created around the prospective event. Typically, every step mentioned can be done by a comprehensive blockchain consultancy firm. 

Conclusion

Token sales will help you finance your project, and you need to understand how to conduct a successful campaign. Multiple projects have failed because of a lack of information on carrying out a successful token sales program. We’ve shared professional steps to help you conduct a result-focused ico token sale campaign. This guide has touched on various stages, like developing a robust product, articulating a white, and legal considerations. The guide also offers tips and tricks on how to market your tokens.

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