An ICO is a financial tool now available for new companies to raise a capital, be it from investors or through P2P. Each company creates a token (Most are created on top of the Ethereum network currently) and you buy that token with fiat (real) money and in turn that token is a placeholder for its value.

This in turn allows companies to raise enormous amounts of money within the span of a day, or a single hour.

ICO or Initial Coin Offering is a process by which early age cryptocurrency startups raise funds in order for further development of the cryptocurrency. Those who wish to support and contribute to the development of cryptocurrency provides funds and in return, get’s a percentage of share in the total number of cryptocurrency. ICO is an unregularised process of raising fund and is used in order to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.

Before launching your ICO project, you may think about the opportunity of creating your separate platform where you will release your own tokens tied to your individual smart contracts.

There are costs associated with a crowdsale or ICO. If we ignore the development cost of your solution and smart contracts (and testing of those), you will have legal costs, and PR and advertising costs. Many teams contacts program management firms like ours Maximin (Blockchain Program Management) to help manage the process. If you are doing a secured raise from accredited investors in the United States you have additional costs on top of that. Then you have a cost of the team that manages your social media accounts, produces video, and manage your customer service during the ICO/TGE process.

Don’t buy your community- Talk less about how good your company is and more about what you plan to solve. It’s a problem that many ICOs and even companies that are not from the crypto world are facing.

Try to get into the eyes of your potential investors by pondering over:

– What value do you bring to the community?
– How will you use the money you have raised?
– How do you plan to find partners and get listed on exchanges?
– Besides buying and selling, what will trigger a usage in your coin?

Be original, Be real, Don’t be greedy, speak to your community with confidence, and you will increase your chances for a successful ICO for sure.

More resources:
https://guerrillabuzz.com/ico-marketing/
www.bisheng.top

https://www.codezeros.com/ We generally charge for ICO Development services in the range rates of $10k-$35k which depends on your requirement.

https://www.blockchaindevelopments.io/ We at Icoclone are responsible for delivering you the desired ICO product at a reasonable price. The cost of the ICO Website Script at Icoclone will start from $3000 to $10,000 depending on your customizable requirements and project complexity.

https://blockchain.oodles.io/ We are a leading Blockchain Development Company providing end-to-end blockchain solutions for Smart Contracts, Wallets, Cryptocurrency Exchanges and ICO

https://www.antiersolutions.com/ Cryptocurrency Exchange Development. Accelerate time-to-market with our turnkey solution. Launch your white label crypto exchange in just 7 days. 100,000 transactions per second. Crypto spot liquidity. Enterprise-grade wallet.

https://jelvix.com/blog/how-to-create-a-cryptocurrency-exchange-website

https://www.bitcoinmarketjournal.com/launching-an-ico/
https://www.bitcoinmarketjournal.com/launching-an-ico/

The ICO process

The Idea: Tech team comes up with a new idea, technology, etc. around BC technology. In order to use the new tecnology, tokens are required and they are issued at the ICO. The tokens represent the cost of transacting (use to be called fuel) in the new platform.

The Announcement. Team anounces an ICO, representing the problem, how to solve it, etc. Uses a whitepaper. Instead of heavy technical details, whitepapers tend to be executive summaries, heavy on marketing jargon and promises. Channels are specialized online channels and forums.

The Capital Target. Team anounces how much capital is needed to execute the idea. If not reached, the ICO has failed and funds are handled back to the investors. Some projects specify a max cap to prevent overfunding.

Founders Shares. Founders keep part of the raised funds (5% eg) and may also keep pre mined coins. X amount of coins are proportionally distributed among investors, advisors, mentors lawyers, institutional investors… through crowdsale, similar to IPOs

The timeline window. Team specifies the timeline of everything: how long will the ICO be open, how long will they collect funds, etc. 30 days uses to be the standard for most ICOs.

ICO begins. ICO opens and begin to accept funds. Many of them accept cryptos and / or fiat money. To accelerate process some ICOs reward early investors with bonuses (5-15% on top of their investments) or use affiliate schemes to spread their word.

Marketing and Communities. ICO campaigns rely heavily on their communities. Comm channels such as Slack, Telegram, Reddit and social media FB, TT. Its important for investors to know about you otherwise no results.

ICO Closes. After 30 days or once limit is reached.

Issue tokens. Team issues tokens representing shares in the organization. Could be a coin on a new BC or also a token over their own app on top of existing platforms such as ETH BC.

Exchanges. Tokens reach the exchanges, get listed and people can buy and sell them. Early investors can cash out and others may come in. A real market is created.


ICOs PROS/CONS

ADVANTAGES
ICO great way to boostrap BC businesses.
No need to give up equity.
Less or no compliances. <<<- !!!
No need to wait years for the hole operation.
Being open source you may create a community to make it dynamic.

DISADVANTAGES
Few people aware of them, no mainstream.
Too many new coins: community becoming cautious.
This means even good ideas may fall apart because of the caution of people.
Regulatory uncertainty.