The world literally explodes with new and steep ideas. All thanks to the blockchain technology on which cryptography projects are based. The funds for these projects are attracted to the ICO. Of course, the future of the project depends on the quality of ICO .
What influences success and what can guarantee the hard cap? Today we will analyze the most successful ICO cases and the advice of influential people from the cryptographic sphere.
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- What is the ICO?
- ICO characteristics in contrast to crowdfunding
- Examples of successful ICO
- Step by step instructions for creating ICO
- To increase the value of the token? 19659010] How much does an ICO cost?
- Suggestions for keeping ICO from The Coin Shark
- Advice for leading ICOs from celebrities
Initial offer of coins, or, as everyone knows, ICO is a possibility in the field of cryptocurrency, which offers a great opportunity for start-ups to take a deep breath, to the detriment of the initial offer of coins for investors. In the ICO area, funds are raised to develop and promote the idea, as well as to increase brand awareness.
The cost of the token depends directly on the idea of the project. If it is of value to a person, it can solve global problems or simplify life, ie it will be required, so the ICO project token will grow in price.
ICO is the best way to raise funds for blockchain projects. About $ 2 billion for 130 cryptocurrency projects have been collected only from the start of this year during ICO.
However, a piece of cake is interesting not just for people with good and honest intentions. ICO attracts scammers, speculators and hackers who use the fact that the law does not keep pace with advances in technology and can not regulate it.
Some countries are already trying to regulate the cryptocurrency and ICO to the law level. But the attempts have not yet been successful. Therefore, until today the hands of the cryptographic figures have been free.
ICO projects collect investments by selling tokens. Because of this, the investor automatically becomes a participant in the project. By investing in crowdfunding, a person makes a kind of regular purchase in the future time. That is, pay in advance for the purchase of goods or services.
With the help of ICO, it is possible to attract funding to projects that are only in the phase of "packaging" the idea, that is, at the initial state. Crowdfunding, in turn, involves the acquisition of finished products and services on special sites. That is, zero financing of the product is impossible.
Very often, ICO and IPO are confronted due to a similar process of attracting funding. As for crowdfunding, it is rather difficult to call it "a form of investment". It is rather a type of business.
Funding with a crowdfunding method can be received from projects that already have some capital. Investments through ICO tools can also be collected without the product MVP.
The best example of "successful ICO" is Ethereum . It is also the first ever project with ICO.
In 2018, the cryptography industry was blown up by news on the ICO of Telegram messenger, owned by Pavel Durov. During the ICO, over 200 investors were attracted; they have invested $ 1.7 billion. Prior to the launch of Telegram's ICO, the absolute leader in terms of funds raised was EOS, which attracted $ 4 billion .
Step # 1: Concept formation and announcement
If you have a real idea, take the time to study its relevance in accordance with current and future realities market conditions. The relevance of the project influences the success of the promotion and ICO. If it is not able to solve global and / or private tasks, it will not be of interest to the company.
Step 2: Team and registration of the project
On average, 20 to 30 people participated in the creation of successful IOs. The ICO organization should be carried out by a team of programmers, marketing operators, copywriters, PR specialists, designers, analysts and other strictly specialized experts. The main thing is that they should be extremely competent in carrying out ICO.
After staff training, it is necessary to register the company. This will increase investor confidence. After all, today we already know many cases where investors have been deceived and their funds have filled the pockets of scammers. By registering a company and developing a mechanism to protect investment capital, the level of trust increases automatically.
Step 3: Development of the white paper
In order for the financiers to have full access to the project, the White Paper is used. This marketing beast is a powerful tool that is able to convert only one interested reader into a participant or investor interested in the project. The main thing is to present the information correctly and explain everything in the simplest language.
Step 4: Creating and starting the site
The site is designed to carry out information, advertising and sales functions. For ICO, one-page sites (landings) are created. The platforms that lead the ICO should be concerned with the content, including the inclusion of the White Paper in pdf format. In addition to the site, the effectiveness will be added by e-mail.
Step 5: Advertising and promotion in social networks
The more noise is around the project, the more interested people will be attracted to it. The best place for the hype is in social networks: Facebook, Reddit, Medium and other platforms. Also, do not forget to use all possible traffic channels. The PR campaign will contribute to forming a broad and comprehensive audience
Step 6: Bounty campaign
The help is not superfluous. Crypto volunteers (the bounties) can be attracted to the project. True, they do not work for free, but for project tokens, which the company pays for simple tasks: republishing in social networks, writing reviews, reports, translating articles into other languages and for others.
Step # 7: Token Issue
It is not useful to create tokens on your own today. To do this, it is better to use platforms like Ethereum, Waves, NEM, NXT / Ardor, Counterparty and BitShares. Investors especially trust the tokens created on Ethereum, because the platform is the only one that has its own function of smart contracts.
Step 8: Sale of tokens (ICO)
It is very important that investments start to "swim" in the project in the early hours of the ICO. This is more than realistic, as long as the preparatory phases listed above have been correctly implemented.
It is quite difficult to predict the exact cost of ICO by the end of 2018. Experts attribute this to more competition. They also state that prices will continue to grow. The cost of participation now ranges between $ 100k and $ 500k.
The cost of ICO includes the development of an MVP product (if included in the project idea), White paper, team building, public relations coverage and more. At the same time, everything depends on the complexity of the implementation.
Tip no. 1: speak the language of the target audience
The project should be described in a simple and understandable language. The level of how the reader will learn the information and his desire to participate in the development of the project depends on the level of readability of the White Paper, articles, posts in social networks. Nobody wants to invest in something they do not understand
Tip no. 2: answer key questions
Through ICO funds they are attracted only to projects based on blockchain technology. It is necessary to demonstrate in detail the need for blockchain in the project. Also, open the problems that are called to solve and its value.
Suggestion n. 3: analytical reasons
Investors invest only in projects with good prospects. Therefore, include the market analysis and the segment to which the project belongs in the White Paper.
Suggestion n. 4: The value of the token
Describe the role of the tokens within the project and the benefits that its holders will have. It is also important to justify based on the value, speed and quantity of the token that can grow in price.
Suggestion n. 5: attracting professional marketing for ICO
First of all, you should not try to do the ICO preparation and launch alone. Yes, after watching videos on Youtube, everything seems very clear. But is not so. After all, in a video of an hour, no one will talk about the pitfalls and how to remove them for not going to the bottom. In relation to this, The Coin Shark recommends entrusting the organization, conduct and maintenance of the ICO to a marketing agency specializing in blockchain projects.
Tip no. 1: "ICO is crowdfunding" – only agreement
Experts recommend treating ICO as crowdfunding. To do this, meet the primary needs of investors and future users. Act as if funding were attracted in the traditional way. Tip of the genre
Tip no. 2: strong team
If the team has public figures, opinion leaders, consultants who have participated in ICO known and successful, it is worth mentioning.
Tip # 3: Be Patient
As practice shows, ICO conducting often starts with the initial strategic plan. And this is normal! Do not immediately perceive barriers as a failure. Be patient and accept it as a possibility to overcome your last expectations.
Suggestion n. 4: driving a transparent game
ICO investors have long raised their ears and at the slightest mention of a scam are the winding rods. The transparency of the organizers of ICO and the creators of the project is important to them. For example, the address of top-up tokens is only published by honest projects.
Suggestion n. 5: Platform for ICO
To receive funds during ICO, you need a personal website for the project. But this does not mean that it should only be used this way. On the platform, you need to enter basic project information, White Paper, Road Map, soft and hard cap sizes, and view the amount of funds raised.
ICO in 2018 is of great importance for the digital currency. Because it opens wide horizons for start-ups and investors, especially beginners. Even if the project has nothing but an idea, it still has the possibility to collect the necessary amount of funds for downsizing and full implementation.
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