There are several companies that are turning to the popularity of blockchain and cryptocurrency in further developing their business. While traditional companies are looking for outside inventors and the public through the stock market for development and expansion, several start-ups are now riding the trend and the demand of the so-called digital currency in order to raise funds. While the stock market has the IPO (Initial Public Offering), the world of cryptocurrency has come up with its own equivalent, the ICO (Initial Coin Offering).
ICO is a fundraising activity where a company will be offering its own digital currency, in exchange for bitcoin, etherium, and other forms of cryptocurrency. The purpose of this is to attract investors and raise funds that can be used in expanding and further developing the business. If you are planning to do the same way with your business, the tips below will give you several ideas on how to launch your own ICO.
- Determine if your business is best suited to have an ICO.
Before doing anything, you have to do your own due diligence and do the proper research and investigation if indeed your business is suitable for an ICO. The most important question that should be answered is if the digital currency can be merged and integrated into your own business model.
If your digital currency is only designed to trade, it is more likely that the price of your digital currency will crash after the ICO. To avoid this from happening, you must have a strong business model that is well-integrated into your proposed digital currency.
- Build an actual product.
This is the most important part of starting your own ICO. You have to use your time properly to come up with the most secure, stable, and scalable product on the blockchain market. It is a fact that starting an ICO is not easy; you also need to use money or investment if you want your business to take off and earn profits. The only way that your ICO will be successful is to come up with a product that can go hand-in-hand with your own digital currency.
- Create your own ICO token.
Creating your own digital currency or token is the simplest part of launching the ICO. The token will be representing several tradable goods such as a digital coin, loyal points, and other similar items the represent the assets of your business. The tokens can be comparable to the shares of a company that is being offered to investors in the IPO of the stock market.
Before determining and creating your token, you must plan ahead how much tokens you need to raise. You also need to determine the amount of tokens you will issue while also deciding how much will be retained to be used on the Pre-ICO if you decide to sell before the actual ICO itself. As a reminder, you can use several platforms particularly ethereum and wave which will enable you to make your own token without requiring you to create a blockchain from the start.
- Know your legalities when starting an ICO.
Getting a legal opinion is a must if you are dealing with the money of other people. With a lot of scammers around, getting a legal opinion will make sure that the ICO and the token will be viewed as secured and legal by the prospective investors. There are several countries that have strongly regulated cryptocurrency dealings especially in terms of ICO. It is important for you to ensure that the ICO and your digital currency is in compliant with the current regulation of the government.
- Make a White Paper
The white paper is a printed document that summarises the overall technical aspect of your product. It is a list of the detailed description of your proposed project. This is an essential document that should be made without flaws and should provide the full and correct description of your project. This White Paper will influence future investors should they decide to invest in your proposed ICO.
Starting your own ICO is easier said than done, but doing it right will be beneficial for the development and the expansion of your business. As the popularity of blockchain and cryptocurrencies continue to go up, more opportunities will come that should bring benefits to your business.