ICO is a new way to fund a start-up. Companies around the world are coming up with their Initial Coin Offering (ICO) campaigns on an almost every day. However, launching an ICO successfully is such a herculean task. In the following write-up, we have concluded some great insights and tips needed to succeed in ICO launch.
1. Have a concise ICO launch design
ICO is a “crowd-sale,” where a company uses ICOs to release and sell a small portion of tokens to investors. It helps companies gather initial funds to develop their own products, and investors receive a percentage of the token shares.
Therefore, spend precious time building a stable, robust, secure and scalable product on the blockchain, to tell how it’s going to change the world. You need a product on board, and your product must use your token. This will help you explain how the crypto works and how your investors will get their returns.
- 2. Have a working Whitepaper
Alike every campaign, which comes into place to accomplish some purposes, and so does an ICO. You must get ready with a prospectus like a whitepaper and a roadmap which outlines technical aspects of your project, the problems it intented to solve, etc. If you properly channel the complex details of your ICO project, these reports can help you easily display the project’s efficiency to potential investors and help win their confidence.
Whitepaper: In this technical blueprint of your project, you should clearly describe its systems architecture, anticipated growth, and many other details that how your ICO will address the particular problem.
Roadmap: You should create this document to lays out the timeline of your ICO’s activities like the stages of the campaign, project launch, budgeting, security audits, etc.
- 3. Build An Authoritative Team
It is paramount to have a great core team that will build trust and legitimacy with any potential token investor. Token investor wants to see a solid connected and real team. Having highly skilled individuals, you will increase the odds of not only making a breakthrough but also convincing investors that your product is reliable.
- 4. Cyber Security
Due to the nature of business and engagement of digital currency & wallets, ICO and token sale are also an exciting thing for the hackers. Through getting into the back end of an ICO, and replacing company’s wallet address to personal address, hackers could steal money. You need to secure your project, therefore invest in a security company. Look for the security company that saves your site from hackers, DDoS attacks as well as perform monitoring of fake social profiles and fishing websites that could trick and harm your token investors.
- 5. Prepare A Pricing Strategy
According to your goals and growth expectations, you should decide ICO pricing. You can go ahead with the following four basic pricing methods:
Undetermined price: The price is not set. As per the contribution to the project, an investor owns a proportional amount of coins.
Fixed price: Investors allow to own fixed-price tokens but not allowed to trade before freezing period.
Dutch auction: The first coins are the most expensive, but the price decreases gradually over the investment period.
Price rise ICO: The agile investors get the best price for your tokens.
- 6. Create Community and Buzz
This is probably the most important step in the ICO process as you have to stand out from over a thousand of ICO and token sales available in the market. Your token sale will not get anywhere unless your target audience recognizes it. You need to create initial hype about your token. Thus, you are required to activate all the marketing and public relations channels like Facebook, Twitter, Youtube, and LinkedIn, etc. Get your foot in the door of crypto-based channels like Reddit and Bitcointalk which are known for its power to bring you to the crypto community.
- 7. Protect Your Investors
In the game of money, potential investors are not willing to take on too much risk. You need to protect your investors as well as the investments using 3 precautionary systems:
Discounts: Come up with discounts or other benefits to protect investors who support you in the initial growing period.
Escrow Wallet: Implement multi-signature escrow wallet in your company that displays the names of all key holders that transfer a sense of security to new investors.
Fund Return: As probability always involved with the success of an ICO, you should enter into ICO campaign with a mechanism for the return of funds to campaign supporters.