Launching Your ICO: 5 Useful Tips
ICOs, or Initial Coin Offerings, have proven themselves to be quite a revolutionary method for start-ups to raise funds for their cryptocurrency projects. Not only is the potential of the raised amount virtually unlimited, it also allows the business to operate without any kind of interference from the investors, unlike what happens with IPOs. Therefore, it only makes sense that a lot of companies and new ventures are interested in launching their own ICOs now. Since this is still a comparatively new method of getting investors, here are six points that should be kept in mind to launch your ICO in the best way possible.
Goal Determination and Explanation
While an ICO is not very vulnerable to investor manipulation, you will still need to explain the plan and the goals of the project to your investors in order to get them interested. Goal determination and mapping out the plan is also essential for the success of the project since that gives everything a definite direction. A properly made whitepaper document will explain all the primary and secondary ideas, goals, and plans for both the present and the future, while the roadmap should at least provide an idea of what to expect and when, which is also known as a projected timeline of various significant developments in the venture.
Marketing Your ICO
There are some significant differences between marketing your ICO and marketing in general. It is imperative that you find the right audience for your crypto sponsored posts and updates, which is not an easy task unless you are working with the proper resources who already have the channels to get the news and updates of your venture through to the interested parties.
The Two Types of Investors
There are generally two types of investors who will put their money into your ICO; smaller investors ($300 or less on an average) who will be concerned with your authenticity and exchange plans more than future developments, and larger investors who will be more interested in seeing the big picture. Marketing to the two opposing types of investors will require different strategies and approach. This is why it might actually be a better idea to involve the big investors in a private sale first, before going public with the project.
The Necessity of Experts
The blockchain technology itself is complex and when you are trying to develop your own, you can never have too many experienced people in your team. Even when you yourself are the main man behind the job, the presence of another expert to help you get a neutral perspective of things is actually a great idea. If that expert happens to be an investor as well, even better.
The Art of Making Money without Making Money the Priority
It may seem counterintuitive for a new business to put profit second, but in reality, it isn’t so at all. There are a number of established cryptocurrencies out there already, so your efforts in building the currency from scratch should be directed towards making it useful for the crypto community in some way. If you do that, you will be supported by the bitcoin community, but if making money is the primary objective of the project, finding investors for your ICO will be very hard.
It is always going to be somewhat complicated to sell an idea, rather than the actual product, so finding investors for an ICO is not going to be a piece of cake, as it is after all, just an idea at the moment. Nevertheless, if you do have a great idea, and you decide to take everything we just discussed into account, there’s practically no reason as to why your ICO won’t be a hit either!