Initial coin offering, ICO launch help startups by providing them the new digital token. And in return, they ask for more amendable and extravagant cryptocurrency like Ethereum and Bitcoins. For instance, you need $ 4000 million for starting Airbus manufacturing business, you can opt for ICO launch.
Make sure before launch that your coin has the capability of getting register on any coin exchange.
How ICO Launch Goes
It is the first step. In this, an early announcement about the project is done and to kindle the interest of investors. Also in this phase, ICO launchers present the detailed summary of the project to explain its purpose and objective.
- Offering- offering is the second step to launch ICO. It involves the declaration about the transactions that will happen in the meantime and after the ICO launch. It includes everything from token generation, token expenses, fund allocation, targeted amount, partner details and the expected outcome of the project.
- PR Campaigns- PR campaigns have a major role in ICO launch as it advertises and forecasts the timeline status of the ICO project from the present to the future. A solicitous and illuminating PR campaign lasts for nearly a month and it helps the companies launching ICOs. It also helps persons to reach small and big investors and customers from each category.
- ICO Sale- final step is to sale ICO and it has two different ways. The first way is to launch ISO sale by taking a minimum security deposit already given in the proposal. Then selling the ICOs to different customers in ratios. The second way is to sale ICO token at the time of cryptocurrency exchange. In this process, the ICO launch companies have to release the tokens priorly so that the exchanges can take place on the basis of many other cryptocurrency exchanges.
How ICO Launch Help Startups
A Good Approach to Accomplish Goals
The traditional way of raising funds is to plunge business ideas, presentations and listening to the conditions of investors. Many of the startups follow this method to raise their funds but ICO is also a must consider a method of raising funds. Startups must also consider ISO Launch as a unique opportunity to raise funds. Your business domain does not matter at all. If you have a unique and killer business idea, you have the potential to become the next Amazon or Uber.
Easy Entry to the ICO Environment
The token is the major nerve of ICO. Due to the huge success of bitcoin and new innovations in cryptocurrencies, one can easily generate token and launch ICOs. Startups are free to create their own token either by using old code or by writing a new one. But also remember the fact that the number of tokens you require depends on the final aim and the scope of the project. If you opt for Ethereum platform to create your ICO, you have the sway to access special tokens called ERC20. These are offered by the Ethereum platform. You don’t need to write a fresh code, you just have to pay a small fee to keep the tokens running well on Ethereum blockchain.
Limited Bounding Regulations
Till the present time, there were no legal boundation on the ICO market. Evidently, cryptocurrency is becoming the way to money laundering and other frauds. But since nearly last two years, the regulating authorities have given pace on putting legal boundations on the ICO dealings. Each country where cryptocurrency is legal has their own regulations.
No doubt, cryptocurrency is an innovative and amazing way to invest and raise funds. But it comes with some risk factors in addition.
Disclaimer: This article is not meant to be taken as investment or legal advice, but rather as a rough template to show the process behind an Initial Coin Offering and what the project’s stakeholders should consider when running one.