Initial Coin Offerings (ICOs) help cryptocurrency backed start-ups generate the required funds for their project. Those who invest in an ICO are given the cryptocurrency tokens before they start to be used in the project. They have the promise that once the project gathers traction the price of each coin will surge and land them huge profits. ICOs do not require you to go through the regulation checks of banks of financial institutions and allow you to use the blockchain technology to show your business model and strategy in a transparent manner. To get started and create your own ICO, you should know a few things.
Focus on the Whitepaper
Your whitepaper is the document the general masses are going to read to learn about your project. The ICO description cannot give out all the particulars. The whitepaper, while being technical in nature, cannot have too much jargon. Always remember that your target audience is not restricted to those knowledgeable in coding or the blockchain technology. If you are able to break down your technology to help those people understand, then you’ve done a good job.
To do so, make sure you write the first draft of the whitepaper yourself. It won’t be the best piece of art, but it will give the clearest information about your project since it’s you who’s doing the writing. Once you have that draft, you can polish and fine tune it as much as you want with the help of editors and writers. Also, rope in advisers to see how good your whitepaper and ICO strategy is. Advisers won’t help you for free, but they don’t usually charge money before the ICO ends.
Look at Previous ICOs
Any pioneering technology has its own special place, but those that follow always have the benefit of learning from their mistakes. There have been hundreds of ICOs so far, which gives you a good database to study and research from. See how they approached it and see where they got it right and wrong. The advisers you have will help you identify these things better. Your ICO will be closely scrutinized by people around the world, so try as much as possible to leave no loopholes or grey areas. Be as transparent as possible, and have a clear outline of the process you will use.
Focus on Security of Smart Contracts
You will no doubt use smart contracts for your ICO. Most ICOs use the Ethereum blockchain, and smart contracts are a given there. Since smart contracts allow anyone with some technical skills to interact with your ICO, you should ensure it is secure enough to ward off attacks.
Build a good Website
This is even more important than your whitepaper. While the whitepaper gives out all the particulars regarding the working of your project and the future plans, your website is generally the first point of interaction with the public. They will see details about your ICO and project there, and they will decide to invest in your ICO there. A bland interface is always a deal breaker. Telling people about your model, the utility of your project your team helps build a relationship with the customers. Make sure that you appeal to the eyes as well as the brain.
Cover the Legal area of your ICO
By legal area we mean that make sure you have a legal adviser on board who helps you carry out the process without leaving any weak points. Find out about the jurisdiction and laws regarding ICOs in your area. Depending on them, you might have to relocate your business. Make sure the legal adviser has experience handling ICOs so that he can be of some help to you.
To set up an ICO you need to do a bit of work. You are pitching yourself to prospective investors, so you have to do it in an efficient manner. Looking at previous ICOs is always a big help. There are other things as well which you should take care of when launching an ICO, but these are the key areas you need to work on. If you do that, you will be primed for success.