In the past few years, Initial Coin Offering (ICO) has blown off the market with its funding surpassing billions of dollars. More and more blockchain venture capitalists are looking to invest in ICO’s launched by startups all over the world.
For those who are confused, in simple words, ICO is a digital platform that regulates crowdfunding using blockchain. Startups launch their own personal cryptocurrency and sell it to investors for funds – with a promise and confidence that your business will skyrocket and bring multifold profits to them.
Investors buy their currency in hopes that its value will increase over time and they can make profits off of it. This whole operation runs upon trust and mutual understanding. If you want to actively benefit your business with ICO, here are some navigational tips to assist you with.
With opportunities, there are also many fraudulent risks involved here. Phony people set up fake companies just to collect money from the market and scam investors.
Hence your idea and concept should be strong enough to be proven legitimate since investors are watchful about who they are investing in. So make the premise of your project so strong that you know and are confident about every bit of it.
Make it stand out from the competition so that investors actually get interested in you. For that, you have to acquire a solid knowledge about the market and your customer base so you know what will be the best foot to put forward.
Whatever business plans you have formulated should be put together in one place which is called the whitepaper. It consists of all the applications of the project and how the token will be put to use in it.
A whitepaper is basically a unified congregation of information from all arenas grouped into one document. It also consists of all the technical information relating to the project – that is compiled by your team and cannot be outsourced. This document gives the contributor a perspective upon the operation and persuades them to be a part of it.
Create your own token cryptocurrency that is to be exchanged for other high rating cryptocurrencies like bitcoin, or fiat money. It is always good to have a physical representation of the token for getting the investors to believe in your project and that they are working on something.
This token can be made by using cryptocurrency creation tools on computing platforms based on blockchain. Or you can just hire a company to build your own coin. You cannot get investors interested only on the basis of the whitepaper, for they need substantial proof of its existence.
The pricing that you have set up in exchange for the new cryptocurrency must be well defined. If you ask for rates too high, this will reduce the interest of contributors in your project.
Keep transparency regarding the funds that will directly go to you and the percentage that actually belongs to the investor – hence, a correct monetary policy.