How A company Can Launch An ICO

Initial Coin Offerings aka token generation events are in demand nowadays. From social media to magazines, everyone is chattering about the future of ICOs. However, a statistic of ICOs shows their sharp downfall, failing to accomplish goals in recent times. No matter what is the current scenario, blockchain technology is here to stay and so does ICOs. Yes, a private firm can launch an ICO, and a successful launch looks up to a detailed knowledge that includes compliance with the SEC, investors, and marketing.

Before jumping onto ICO bandwagon, first, conclude whether your project needs an ICO or not. So how would you monitor it? If you can relate the following points to your project, then you are surely ready to go.

  • What is a token?
  • Is it absolutely necessary for your company?
  • What function would it perform?
  • Why would the project need to be run on blockchain?
  • Is there a sustainable economic model that will run the business?

First, you need to prepare your mind for building your application on a blockchain. Usually, building an application on a blockchain costs more than building on AWS. Make sure you have a strong reason for selecting a blockchain, for example, centralized vs decentralized, etc.

What are the benefits of building an application on a blockchain?

Evolve Trust Without Involving A Third Party

A project of Filecoin is recently launched that allows decentralised storage of files rather than being maintained by a single party. Miners make money by storing and retrieving files. While removing duplicates and allowing historical versioning of files, people also enjoy shorter bandwidths as they can download files from multiple systems.

Maintain Independent Ledger

To maintain independent ledgers, such as those for a gift card, crowdfunding, loyalty points, etc., blockchains are a good option. Peer to peer trading between who are not in direct competition is in trend these days.

Consensus voting on something:

Take your negotiation process to the next level by enabling voting on union membership, leadership, and structure that allows members to register their inputs on contract negotiations in real time.

So here I am going to begin with a roadmap to a successful ICO launch.

1. Get In The Right Frame Of Mind

Step up from traditional ideas of raising funds by pitching your plan to venture capitalists. Yes, this idea still works today, but you can not seek success by only sticking to it. Now, the trend is of ICOs. No matter whether you are a startup or an established organization, once you want to raise funds to achieve your goals, you probably seek a solution which drives faster results. Right? Though it’s not easy to succeed with an ICO, however, you get control over a process that you probably won’t get with a third party. Whether you’re an investor, ICO or SME, you can use tools, such as DropDeck to find reliable companies for investing in.

2. Competition Is Fierce

Apart from raising funds, you get many other perks with a successful ICO launch. Investors lookout for promising ICOs, and here marketing makes all difference. According to a CNBC.com, the total amount of money raised via ICOs each month is a total of $100 million. So individuals are willing to invest, but only in the best companies which do not have open end policies.

With the growing media attention towards ICOs, competition for investor support is likely to upsurge. If you want to set a benchmark among the saturated ICO playing field, learn best practices and implement them on in a way that is as competitive as that of companies vying for IPOs.

2018 can be an investment year as a large number of organizations can try ICOs and the market for mindshare is oversubscribed, particularly in relation to sophistication of ICO execution. You can not think to try shortcuts here.

A good entrepreneurial background along with a solid advisory team can convince investors by conveying a sense of trust to them.

3. Communication Is Key

Just like every company and investors have different goals and protocols, a particular ICO is also different from others. Therefore, the better your communication will be, the more your marketing efforts will pay of. Simply, communication decides the success of an ICO.

A successful launch of an ICO is followed by outlining technical details of it so that investors can scrutinize the legitimacy of your ICO and make a decision on investment. Talking about your vision upfront can show your potential and calibre to investors; therefore, it’s important to describe your plans whenever you communicate. Don’t forget to keep your interactions subtle and generic while trying to avoid being too much promotional as this might buzz away investors. Prepare your team to represent your ICO roadmap well in front of investors without paying attention to heavy marketing. I hope you have a friendly website with a detailed description about ICO because people buy through eyes.

Tip: Keep your approach straightforward with a clear marketing message which will keep you under a spotlight amongst investors. On the other hand, a salsey message might turn off investors in favor of other ICOs.

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