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Today, we shall discuss the basics of an ICO launch. If you are a crypto enthusiast, you should have basic knowledge of an ICO launch.
We have discussed ICO basics and then about the classification of ICO Tokens available in the market. I feel now we are ready to theoretically go for (or to be precise the process) an ICO launch in the market. We shall discuss the basic steps.
I shall not discuss the ICO basics again. Please refer to my below posts if you are interested to know the basics.
Anyone, who is an even little bit interested in cryptocurrency must have heard how ICOs have generated crypto equal to thousands or millions of fiat monies. But the fact is that it is not a fly-by-night job. If an organization is interested in an ICO launch, it starts with lots of activities maybe six months before the actual ICO token sale to the public. There are specific ICO research agencies involved. Smith And Crown is worth mentioning here.
We shall have a look at all the activities and divide them into Pre-Public Engagement and Post-Public Engagement.
ICO Launch Pre-Public Engagement
Like any new business, before launching, the startup should have an innovative idea. It should be unique in the sense that it should serve new members of the community, generate a requirement and implicitly make some money and be financially viable.
Identify and publicize the core team
Depending on the project, you might require developers and people experienced in managing an ICO Token sale. If you take industry veterans who are known for their experience, you create credibility for yourself. In-case you don’t have the people with required competencies, you can take help of external advisors. This core team will be the people at the helm of the project to drive it from the beginning until the actual sale takes up.
The project roadmap should be decided in the beginning so as to publicize it during pre-launch marketing, publish it as part of the White Paper. The project roadmap is a commitment to your supporters and investors with the timelines of project implementation and lifecycle of various sub-activities involved in the ICO project. The roadmap should be a feasible commitment for future developments.
Before the ICO is formally launched, you should take a legal opinion for every issue. This may help define the jurisdiction and get legal counsel to operate in the corresponding legislation for corporate structure, taxes, securities, Anti-Money Laundering (AML) and Know Your Customers (KYC) laws, etc. There are a lot more aspects related to security and legal compliances; jurisdictions, taxation, crowd-funding laws to name a few. I don’t consider writing more about these issues here. If you are interested, we can a discussion on it one to one on mail.
Like any other business, you should create your website as the public showpiece of your business. Among other issues, it should highlight the project aim, people behind the project, the roadmap of the project and information related to investor security.
Another issue is the security and traffic handling of the website. The website should handle adequate traffic and should be secured and unhackable, else the ICO event might go in for a toss.
White Paper & Yellow Paper
Next, you should come up with a technical white paper. This document is considered to give a sort of credibility and seriousness. Whitepaper explains in depth the “How and Why” of your project. The whitepaper will showcase your project details including the product or service to be offered, the team involved, the roadmap of the project, the financial feasibility study etc.
Generally, it is considered to create a positive environment and decision making an element for people to invest.
There are two more types of papers involved – Position Paper and Yellow Paper. Position Paper is a sort of brief technology argument and is used to finalize the white paper. The Yellow Paper is a description of the scientific detail the technology and the creations did or are proposed to be done in the future.
Token sale terms
The investors will be interested in knowing the terms of your token sales. This can be like, the percentage of the total which is being distributed now and how much will be kept for the future, the duration of the sale, any soft or hard caps and any other issue which may impact their interest.
You can start building your community to create an awareness of the project in ICO news in the media. The marketing is generally done using social media (however, nowadays, Google, Facebook etc have stopped accepting advertisements for ICOs), blogs, press releases, events, meet-ups, conferences, etc. to name a few. A proper marketing strategy is to be decided before the actual implementation. There is another type of marketing called Bounty campaigns. In this, you promise to give bounty rewards in tokens once ICO is done as a fee for marketing and writing positive stuff in the press or social media.
Before the ICO starts, the code has to be released. It is also to be submitted to the exchanges where you plan to get your tokens listed. You may also get it audited from an external third party.
The Actual TOKEN Sale Event:
When the actual Token sale is to be done, it is done in one of the models decided. These different sale models are:
– Uncapped with Fixed Rate
– Hard Cap
– Soft Cap
– Dutch auction
– Reverse Dutch auction
– Collect and Return
– Dynamic Ceiling
There is other essential information which needs to be shared, like block number, date and time, or mined block sale start time, Sale duration, are tokens mined or pre-mined. Token exchange rates, Allocation of proceeds, Token Allocation and Vesting etc.
Post ICO Launch Activities
If you are a serious businessman and know your responsibilities, you will be too much busy after your successful token sale event, because your investors have put their money and faith in you. Now it’s your turn to start on your commitments to give them back.
There are people, who think, conducting the ICO is the end of the game. In fact, it is the start of the game. It is the time to focus on developing the technology or services promised and delivering the same. This should be taken as a bigger challenge than the ICO. Another issue is to keep the communication going with the community created by token sale.
Running an ICO launch is not simple money-grabbing!! It is to deliver the promises made to your investor community . . . . .