Initial Coin Offerings have become so popular that there is no other easy and faster way to raise funds for a cryptocurrency project.
Successful ICOs are hinged on serious preparation. Find out if there are regulations and note that the public has also become more knowledgeable about the ICO system.
For that matter, there are two principles you need to operate on when launching your own ICO to convince the public about your project.
- Authenticity– be original. The cryptocurrency community is quick to point out projects that are authentic from those that are fraudulent and, therefore, won’t generate any value for the ICO supporters.
- Transparency– people value openness. If an ICO is shady in its interactions with the community usually it won’t receive much attention.
So, what should you do in order to make your coin offering succeed? What steps should you take to launch your own ICO? Read on to learn about how to prepare for and run a successful ICO in 10 easy steps.
Step 1: Write your whitepaper
This is the first step because this is where you relay your idea to the prospective supporters. In those initial steps, your idea won’t be clear cut; you may need to do a lot of research into areas related to your project. Once you identify the niche that your ICO will try to offer solutions to, it’s paramount that you fully describe it and with adequate back up for every claim. You can read a few of the available whitepapers to find out how they are written, but you shouldnever try to duplicate ideas or plagiarize other whitepapers. That will only accelerate the rate at which the public will dismiss your project. Make sure you are knowledgeable about blockchain, cryptocurrency, and the ICO environment.
Step 2: Choose your token type
In this step, you should decide the type and purpose of your token. Pick a token symbol that is easy to recall- avoid being too fancy. You should make a decision on how you intend to use the token in incentivizing the supporters and contributors. In this step,should also set your soft and hard token caps. There are some uncapped ICOs, but the trend is changing such that the public would prefer to know what the soft and hard caps are.
Step 3: Set your Terms and Conditions
Basically, this step involves researching the legalities surrounding the ICO landscape. You should be able to decide who is legible to participate in the ICO. It is advisable that you set clear terms concerning how many tokens shall be distributed; who will get how much and for what purpose; will all the coins be available at once, and the funds and how they should be spent;
Step 4: Embark on building your ICO team
This is a very important part of the ICO process. You need to assemble a team that consists of people with expertise and experience. The team should be one that can promote the ethos of the ICO. Do not put up a team of so many people though –quality not quantity. Have on the team people with knowledge of cryptocurrency and blockchain technology. You should do some research and use social networking channels to source for an expert who can help you get the message out to the people.
Step5: Choose the Blockchain platform for the ICO
With the first four steps handled, step five requires that you identify the blockchain platform that will be used to launch the ICO token. There are a number of platforms out there now that you can choose from. For instance, Ethereum, Waves, NXT, NEO, and NEM. All these platforms will give you some degree of ICO solutions to host your token. However, the most popular one is Ethereum’s ERC-20 token standard. With it, you can set several smart contracts in relation to your ICO token. Ensure your team has someone comfortable with the ERC20 token standard.
Step 6: Stipulate the roll out calendar
Here you have to decide how the token shall be issued out. For instance, you may decide to have a presale (very common), a private sale, the coin offering (public) and a general sale. The number of times you do it may be determined by the ICO needs and structure. You can announce this information on forums like BitcoinTalk or Telegram. To reduce the number of people who take part, use a whitelist that indicates the most ardent supporters or those whose association with the ICO can bring about positive uptake of the ICO. Remember to have the KYC ready.
Step7: Smart Contracts
You need to write the token sale contracts that will manage the coin offering. Contributors will send the ETH or BTC to the assigned wallets before the smart contracts self-execute to send you the funds, while the Contributors are allocated token coins. During this process, you need to do a lot of testing and retesting to ensure everything is secure. The threat of hacking is very real. For the ERC20 token, it would be great to use Open Zeppelin libraries.
Step 8: Setting up the hardware
Your ICO preparation is coming along nicely now. What you need now is to put necessary hardware in place. This is what you will need:
- A wallet- go for a multi-sig cold storage wallet for storing the ICO funds.
- A node- you should sync it with both the test and main net of the ICO platform. It will be useful when launching and testing the Token smart contracts.
- Computer (and all other accessories) – for the purpose of hosting your ICO website
Ensure all the hardware required is up to speed before you launch the ICO.
Step 9: Set up your website
The website connects you to the supporters and provides a chance for them to interact with the ICO. So, set it up professionally with clear navigation buttons and instructions for the contributors. Connect the website to the node to monitor the token sale progress. If you can, get a developer design it for you but be in charge. Let new users be able to login to access the whitepaper, team info or any other relevant content.
Step10: Advertise/Market the ICO
You are done the hard part; now comes the trickier part. If you do it well, your token sale could end up being oversubscribed. Remember that most contributors won’t be complete strangers to the ICO scene. It’s those who are likely to back you up that you need to go for-use Telegram, Twitter, ICO news websites, LinkedIn etc. You should also give a face to the ICO. So do videos and attend meet-ups and be ready to offer as much as possible to the public. In short, use social media to its full extent, but avoid linking your campaign to any scam websites.
The success of your ICO will very much depend on three things: the product, your team, and your marketing. Dedicate time to these and you may just surprise everyone in the ICO space. Good luck running your first crowd sale.