ICO campaigns are actually not suitable for any business out there, so you should think about it in depth before trying it out. In general, there are informal standards that nowadays are required to run a successful campaign. The main requirement you are faced with if you want to start an ICO is that you will have to be genuinely generating value for its users. That’s why your future ICO needs to be authentic and transparent.
Do you have what it takes for an ICO?
Ultimately, the answer to the question “Should I use ICO for my company?” depends on whether you could organically integrate the cryptocurrency meant for the crowdsale into your company’s purpose and product. There an exceptionally high risk of the price crashing right after the end of the ICO, if the only use for your coin is to be bought and sold again. Besides, this makes the chances to interest investors very low in any case – because demand is produced by the utility of the product (in this case, the coin).
Before you start
Even before starting your own ICO, you should be ready to protect our investors’ interests as well as have a plausible goal and a professional team. All of these points should be determined and enunciated to the wide audience before the launch of your ICO.In order to cover the “team” base, pay attention that:
- you have a trusted, non-anonymous people on your team who potential investors can find information on or contact ;
- you don’t change team members too often, and there are professionals on your team (i.e. people with many years of experience in the relevant field).
Next, you should make sure that the objective of your ICO is crystal clear, and your explanations should not have too many buzzwords (since many scam ICOs use the confusion tactic). Not to mention, your goal should be realistic and attainable. There were enough ICOs before that had “a star in the sky” goals that usually were simply too early to launch, for example, an ICO to fund claiming and mining on asteroids.
Make sure that you cater to your investors – e.g. with escrow wallets and special perks for early investors. Be always ready to communicate well and answer questions.
Now, how do I start an ICO?
Nowadays there are platforms that work similarly to Kickstarter and allow you to invest in ICOs and/or to launch your own one. One of the best-known and the largest ICO platforms is the Waves Platform. On it, you can set up a token in quite a short time and practically for free. After that, you can list the created token on Waves exchange, so that the interested investors can find the coin and help you secure the company’s funding.
If you want to launch a token by yourself, you have to be prepared for the high development costs. On the other hand, it gives you way more control when it comes to token’s further development. However, if the token itself is not your core product, then launching it on an ICO platform like Waves can actually be easier and profitable enough.
Law and ICOs
ICOs are about money, and money has a lot of legal regulations around them. Keep this in mind when you decide to start an ICO. Find out beforehand if ICOs are legal in your country and what regulations are they subject to. The last thing you want to do is to break the law, so before conducting or funding an ICO campaign, do your due diligence to comply with all the relevant rules and regulations. Experts recommend hiring a proper lawyer during campaign preparation.
Approach any legal questions with utter attention. Since ICOs have become a way to scam investors way more than once (e.g. when they turned out to be so-called pump-and-dump schemes). If you are improper with your processes, communication or whitepaper, it will be a big red flag for the investors.
Is ICO still a good idea?
The numbers don’t lie – ICOs are still a hot topic that people are interested in. From January to May of 2018, more money was raised through ICOs than in all of 2017, and twice as many ICOs have been launched.
Even though cryptocurrencies still have some problems that are yet to solve, there is also still no Blockchain that would have revolutionized an existing industry. This is where new ideas come into play, and this is where there’s a chance that if you do start an ICO, it might be the next revolutionary one.
Please note: This article is neither sponsored nor is it meant to be considered as legal advice. Please consult a proper lawyer in your legal entity/your country.