There has been a lot of hype about a word this year and everyone loves talking about it, is cryptocurrency. There are so many cryptocurrencies in the market now from blockbuster coins like bitcoins and ethereum to the newest coin like FantasyGold. So far, 1586 cryptocurrencies are listed in coinmarketcap.com and the main reason why we see so many cryptocurrencies is blockchain technology. With the help of blockchain technology developers get an opportunity to create different cryptocurrencies with different functionalities and as we all know no one really controls blockchain technology so anyone who has knowledge of blockchain technology can develop their own virtual cryptocurrency of their own idea so if you are not convinced with the existing cryptocurrencies and want to consider looking into investing in an initial coin offering, you can and then ICO comes into the picture and plays really important part.
So, What is ICO?
Suppose you are coming up with a great idea for a new cryptocurrency system so first thing you need to worry about getting money for your cryptocurrency project so what you can do, either you will go to banks or will try to get venture capitalist investors for your project but there is a way through which you need not worry about giving up any of the ownership of your company which is, ICO.
ICO stands for Initial Coin Offering and it means a new cryptocurrency venture wants to raise capital for it’s project so it is a fundraising mechanism in which new project sell their underlying crypto tokens in exchange for bitcoin or ether, we can say it is somewhat like IPO in which investors purchase shares of a company. So through ICOs, startups avoid the cost of regulatory compliance and intermediaries, such as venture capitalists, bank, and stock exchanges.
Want to have your own ICO, there are following steps you should follow:
A whitepaper mainly addresses an existing problem with cryptocurrencies and how they provide a possible solution and they are coming up with new idea or concept. It consists technical aspect of the product, the existing problem which it claims to solve, team description, token generation and distribution strategy. It is a complete detailed information about product and business plan, marketing plan, and technical manual so that anyone can have an idea about the new concept.
Through this step, you should make a decision what kind and purpose of your token. Pick a token symbol that is straightforward to recall- avoid being too fancy. You must make a decision about how you intend to use the token in incentivizing the supporters and contributing factors.
Essentially this step involves exploring the legalities surrounding the ICO landscape. You should be able to make a decision who is legible to be involved in the ICO. This is a highly recommended that you set clear conditions regarding how many tokens shall be distributed; who will get how much and for what purpose; will all the coins be available at once, and the funds and how they must be put in;
In this step, you should choose the sort and reason for your token. Pick a token image that is anything but difficult to review abstain from being excessively extravagant. You should settle on a choice on how you mean to utilize the token in boosting the supporters and givers. In this step, should likewise set your delicate and hard token tops. There are some uncapped ICOs, yet the pattern is changing with the end goal that the general population would want to comprehend what the delicate and hard tops are.
With all the preparation spread out, its opportunity to picked the blockchain innovation to fuel your token. At the season of composing, Ethereum is by a long shot the most well known and developed stage for propelling ICOs. Making Ethereum ERC-20 Tokens is simple yet actualizing custom group deal rationale around the token can take a touch of reasoning. For instance, you may have rebate structure in view of the commitment date. You need to likewise consider discounting givers if the ICO neglects to achieve its delicate top… and so forth. It’s significant there are likewise speedy token arrangements, for example, WAVES and NXT yet they are not across the board swarm deal arrangement.
Here you need to choose how the token will be issued out. For example, you may choose to have a presale (extremely normal), a private deal, the coin offering (open) and a general deal. The circumstances you do it might be dictated by the ICO needs and structure. You can report this data on gatherings like BitcoinTalk or Telegram. To decrease the number of individuals who participate, utilize a whitelist that shows the most fervent supporters or those whose relationship with the ICO can realize positive take-up of the ICO. Make sure to have the KYC prepared.
You have to compose the token deal gets that will deal with the coin advertising. Givers will send the ETH or BTC to the doled out wallets previously the shrewd contracts self-execute to send you the assets, while the Contributors are designated token coins. Amid this procedure, you have to complete a ton of testing and retesting to guarantee everything is secure. The danger of hacking is genuine. For the ERC20 token, it is awesome to utilize Open Zeppelin libraries. You have to compose the token deal gets that will deal with the coin advertising. Givers will send the ETH or BTC to the doled out wallets previously the shrewd contracts self-execute to send you the assets, while the Contributors are designated token coins. Amid this procedure, you have to complete a ton of testing and retesting to guarantee everything is secure. The danger of hacking is genuine. For the ERC20 token, it is awesome to utilize Open Zeppelin libraries.
Your ICO arrangement is going along pleasantly now. What you require now is to set up vital equipment. This is the thing that you will require:
A wallet-go for a multi-sig cold storage wallet for putting away the ICO reserves.
A node you ought to adjust it with both the test and fundamental net of the ICO stage. It will be helpful when propelling and testing the Token keen contracts.
PC (and every other embellishment) – to host your ICO site
Guarantee all the equipment required is up to speed before you dispatch the ICO.
The site associates you with the supporters and gives an opportunity to them to collaborate with the ICO. Along these lines, set it up professionally with clear route catches and guidelines for the patrons. Associate the site to the hub to screen the token deal advance. On the off chance that you can, get a designer plan it for you yet be in control. Give new clients a chance to have the capacity to log in to get to the whitepaper, group information or some other significant substance.
You are done the crucial step; now comes the trickier part. On the off chance that you do it well, your token deal could wind up being oversubscribed. Keep in mind that most donors won’t be finished outsiders to the ICO scene. It’s the individuals who are probably going to back you up that you have to go for-utilize Telegram, Twitter, ICO news sites, LinkedIn and so on. You ought to likewise give a face to the ICO. So do recordings and go to meet-ups and be prepared to offer however much as could be expected to people in general. To put it plainly, utilize web-based life to its full degree, however, abstain from connecting your battle to any trick sites.
The success of your ICO will solely depend on how your product is different and how it solves an existing problem or what new it is going to offer, your team how influential team you have and how effectively you have done marketing. If these points are well taken care of, your ICO will be a success.