Got a business, and looking to raise funds with an ICO?
If yes, keep reading. Below, we’ll discuss a few steps you must follow to setup an ICO.
The information here should serve as a checklist for ICO setups. Following them through should aid you in properly integrating cryptocurrencies into fundraising!
1. Check for Crypto Currency Regulations
There is a potential for scams using cryptocurrencies. This applies especially to ICO settings.
For that reason, there should be regulations regarding the setup of ICOs.
If there aren’t any where you live, then expect this to be a possibility soon. For that reason, you must check restrictions and legal procedures on ICOs.
Make sure you contact an expert, before jumping into one. If possible, try to find a lawyer with knowledge on cryptocurrency use in your area.
2. Select a Crypto Coin – Pick a Suitable Blockchain
Remember, all transactions for cryptocurrencies are mediated by computers. Thus, you need a suitable block chain system for supervision of the coins you issue.
This is arguably the most important step, where here, security is king.
Good security means testing your transaction technology beforehand. You don’t want a coding error to mess up 5-7 digit dollar transactions.
But note that security isn’t just related to selecting the best blockchain. It’s also a factor that affects investor evaluations.
This leads us to the 3rd step.
3. Select an Experienced and Conspicuous Project Team
Your identities and experience must be clearly shown to the investor.
No investor wants to put money into a shady project. Additionally, no investor wants to invest money with individuals who lack experience.
This is the phase of the project where branding matters.
You must setup clear and concise social media profiles. Also, those profiles must present your experience and contact information.
To Project Leaders…
For project leaders, we recommend you create a team of experienced individuals.
All investors prefer tried and true experts with visible credentials. Finding such individuals is an additional score to ICO funds.
You want experienced individuals in the field of cryptocurrencies. If they will not be included in operations, then they are to provide advisory services.
4. Meticulously Prepare a “White Paper”
Your white paper is how you explain the project to investors. In fact, this will be an experienced investor’s main analytical focus.
If your white paper is unprofessional, it doesn’t matter who you invite on your team. Your project will not receive investment funds.
Through a white paper, you will explain business goals. You will then discuss methods of achieving the goals.
Also, your business goals will present the concept product you need funds for.
If possible, attempt to showcase a prototype of your product. A prototype indicates that the project is serious. Also, prototypes are always attraction points for investors.
It is a bonus too if your product caters to quality.
Make sure you discuss the project in detail. Attempt to provide technical that are relevant to profit. This especially applies to the marketing points of the product and production costs.
5. Set Up a Proper Marketing Campaign
This campaign will include everything from online to offline marketing.
Offline, try to showcase your prototype product at trade shows and events. As for the internet, you need to setup social media for project personalities.
You should also get a website and a set of PRs ready for marketing. Through PRs, you’ll attract necessary small investors from large news networks.
After all, ICOs target low capital investors.
Your PR campaigns should lead directly to your social media and website. There, your focus will be on showcasing your project, products, and what investors gain.
6. Don’t Forget Security Guarantees
You need a lot of them to attract investors.
Less used cryptocurrencies require more security guarantees. This’ll include anything from discounts on tokens, to special token services.
Discounts can attract a lot of investors, especially company bargain hunters. Token services may include a purchase of company product with the digital currency.
Basically, security will attract investors. Also, it will keep them around, especially if you have a startup project with a non-experienced team.
Take Your Time to Plan
Never rush into an ICO offering.
While easier than an IPO, you’re still collecting money for a project. As a result, you have obligations to other investors.
Additionally, do not forget that your company’s reputation will be affected by your ability to deliver on your ICO.
Thus, spend time planning before setting up your offering!