Initial coin offerings (ICOs) have provided an easy way for blockchain startups to raise funds worldwide. Unlike fiat currencies whose reachability is affected by geographical location, Cryptocurrencies are accessible almost everywhere making it easy for ICO project leaders to reach a wider audience. When launching your own ICO, planning will determine whether your project becomes a success or not. Here is a guide on how you can use planning to achieve your objectives.
Identify A Solution To A Real-life Challenge
Despite how perfect your ICO is, you must provide a solution to an already existing problem. Identify your target industry, its challenges, and the existing solutions. Ask yourself why people will prefer to use your product to the other alternatives. Simply transferring the existing solutions to blockchain will not make you succeed. Ensure that your solution is better than those offered by others.
Address The Security Challenges
ICOs, just like with most of the other Crypto projects involve a lot of money. This has made the Crypto sector a major target for hackers. Before launching your coin, you will need to plan how you will shield your project from cyber-attacks. Many ICO projects have gone down due to cyber-attacks and you do not want to be next. Even after ensuring your system is secure, routine auditing of your security system will keep you safe.
Establish Your Token Implementation Plan
When launching your own ICO, having a solid token plan is crucial. Prior to launching your ICO, you need to determine the number tokens you will release and how you will distribute them. Furthermore, you have to determine if they will be utility or security tokens. You also need to set the date for token generation, the maximum cap, and the number of tokens that will go to your team among others in advance.
Identify Avenues To Reach Your Potential Investors
ICOs are reachable to a wide audience regardless of their geographic location. Nevertheless, it is advisable to identify the best communication channel to reach the intended audience or potential investors. Perhaps you may consider using social media given the popularity of Cryptocurrency among the young generation. You may also join blockchain communities to promote your project as there are high chances of finding potential investors there.
Consider The Existing Regulations
Most people think that blockchain, Cryptocurrencies, and even ICOs are non-regulatory. However, all this is just a misconception as different governments around the world have created laws aimed at protecting their people from frauds. Hiring a legal advisor before and even after launching your ICO will go a long way in ensuring that you operate within the law, which will be good for you and your investors.
Prepare For Peak Traffic
Once your ICO is ready and you have successfully advertised the idea, higher chances are that many people will visit your website. This is especially true during registration or sale when it is time-limited. In some cases, your website may be unable to handle the traffic thereby become slow and unresponsive. Proper prior preparation will ensure that potential investors are not frustrated and turned down in the last minute.