An initial coin offering (ICO) is a process by which developers of a Blockchain startup solution raise funds for a tech project. The funds usually go towards paying developers of the different features, paying legal fees, funding administration purposes, marketing the new platform, and other necessities.

ICOs are the opposite of initial public offerings that are common in stock markets. One major benefit of ICOs is that they are easy to enter because Crypto markets are unregulated. Therefore, it is an easy option for raising startup capital for tech firms.

To get a successful fundraising, there are a number of factors that you have to carefully consider for optimal results. These include:

Planning

It is critical to keep in mind that you are raising money to develop a platform that will disrupt the world in a positive way. For instance, you could be working towards creating a platform for tracking the global supply chain of medicine that has an on-platform token, a literature sharing platform, etc. Regardless of what you are working towards, you have to do due diligence and ensure that your idea will sell to the target market.

Creating A Token

A token is a digital asset that is poised to have future value. It is like a share for a listed company. In this perspective, you have to select the standards of the tokens and the protocol that the token will adopt. The most common standards are the ERC20 by Ethereum. Others are Ripple, Monero, or Stellar protocols. The standards that you choose have to align with your vision of the token. Do you want it to be a Cryptocurrency? Do you want it to be a utility token? What are the features of your future Blockchain platform?

Working With A Team

An ICO sale entails selling ownership rights of your idea to investors who are anticipating to be a part of a robust Blockchain platform. Hence, you have to work towards fulfilling your promise to these participants by working with other relevant professionals whom you can invite them as co-founders, advisors or management team. The support team will contribute positively to your project and give you a state-of-the-art project. Hence, prior to inviting them, you ought to have the capital to compensate for their time and skills. However, they may be attracted to your idea and request that you consider them as partners.

• Apply For Patent Rights

The Blockchain Intellectual Property Council at the U.S. Chamber of Digital Commerce is a body that issues property rights to developers. You have to file an application and get a patent right before launching your ICO to ensure that your innovative idea is not stolen by a third party. As you do this, you can also register your platform as an entity to be at the right side of the US SEC regulations.

• Write an Appealing Whitepaper

After you have put your future platform together, the last step should be to write a detailed Whitepaper that is appealing and easy to comprehend. The paper should have various sections that expound on a problem, the solution, the Blockchain platform features, Token information such as soft caps, soft caps, dates, token name, etc. Additionally, include the team’s credentials and the total project’s roadmap.

• Establish A marketing Platform

Ensure that your new platform has a presence in social media, and has a website. You can work with marketers or influencers to create awareness. Also, consider Crypto communities for this purpose.

The Ultimate Guide to Launching Your Own ICO

Conclusion

Setting up an ICO is easy due to the absence of regulations. Nonetheless, follow through with these points to the letter, as they are the foundation for a successful fundraiser, which in turn means a successful Blockchain platform.

Do not forget to revamp security features of your wallet and investors wallets, as a security breach may reverse any gains.