ICO refers to Initial Coin Offer – a cryptocurrency used generally by start-up companies to attract capital and backers. These currencies afford investors more than just a percentage of ROI (return on investment) – they also usually come with additional enticements such as influence or a share in the profits. ICO can be a way for start-ups to raise capital quickly, without registering a traditional IPO (Initial Public Offering – the first sales of stock) with the financial regulatory bodies. INorder to have a successful launch of your ICO, there are some things to bear in mind.
Determine if your offer has value to the investor
Like all start-ups, ICO offerings vary in terms of risk. For example, some token holders will receive a share of the company’s profits and a discount on goods or services. Or, other projects simply buy the tokens back from the investors, at a premium. When you’re listing the pricing and return value of your coins, pay attention to projected inflation – the tokens shouldn’t lose value.
Does coin currency make sense for the product
Ideally, the coin offerings should integrate seamlessly into the product or service you provide. If the only purpose of your coins is crowdfunding for your project, the value of your coins will most likely crash after the product itself launches. In these cases, your coins will probably end up as a speculation investment (high degree of risk where the focus of the purchaser is on price fluctuations). But on the other hand, if you have a product where using the cryptocurrency makes sense, such as Waves or BitCoin, the token holders will have value for their tokens when that product launches.
Now that you’ve determined that an ICO makes sense for your start-up, you’ll need to attract buyers for the tokens. As long as your white paper demonstrates a good return on investment, you should be ablet o secure investors in your start-up. However, you’ll need to make people aware of what you’re offering first. You need a great website, with a thorough white paper, a “roadmap” (will delineate where the financing will come from and a list of what the capital will be spent on).
You also want to start a thread on https://bitcointalk.org/ . This gives you a chance to talk in real time, one on one, with potential investors. You can answer questions, direct them to your website, and reassure any doubts that they may have. it’s also a way to keep updated with your market, and the value your ICO has in relation to others.
Time it right
Make sure that your ICO launches successfully with the right timing. Preparing a new product is exciting, and you may want to get investors in the pipeline as quickly as possible, but this isn’t always best. Make sure that you are prepared with a well-researched white paper, easy to navigate and informative website, and a talented team ready to work. You will want PR advice to generate excitement in the investment community before the launch – its advisable to hire someone if you aren’t savvy in this area. Be prepared to remain in communication with your investors and your audience – through both social media and niche communities, such as bitcointalk.
ICO can be a great way to raise funds for a new product or service, but the key to having a successful ICO launch is preparation. When in doubt, seek an expert opinion, and always remain transparent with investors.
Get The Word Out
Finally, you want to make sure that your ICO launches with the right amount of publicity. The best way is getting listed on sites such as ICORanker.com. Also, put out press releases and contact media outlets. Start a mailing list and keep potential investors in the loop as your ICO approaches.