What Is ICO?
Initial coin offering or ICO is considered one of the most prevalent forms of fundraising activity that consist of trading virtual assets in order to generate funds for a project run by blockchain. One can create their own crowdfunding via ICO services company, and this is majorly done by startups looking for initial cryptocurrency funding. ICO investments or funding can be both public or private, depending upon the usage and mechanism. Check bitLQ to get a piece of detailed information about bitcoin trading.
Private ICO – As the name suggests, a Private ICO is a private network of investors gathered to fund a project. Here there are only limited investors or firms with a specific net worth to invest in an ICO.
Public ICO – This form of initial coin offering consists of the huge public coming together and raising funds. From the general public to potential investors, everyone can participate in public crowdfunding. However, due to administrative issues and rules, public ICOs are considered less popular than private ICOs.
The Importance of Whitepaper in Developing the Framework for ICO Investing
A whitepaper is an official document that works as a major public tool. This provides investors and stakeholders with the relevant information needed for the happening. Major information such as project aspects, visions, missions, objectives, roadmap, team, timetable, intended funds usage, target audience, etc., is present in the official document.
Developing Frameworks for ICO Investing
1. Team Network
One needs a well-qualified team to work on the ICO design mechanism. The team framework can be divided into two parts – developers and counsels. People who build products and have high knowledge about smart contracts and blockchain are termed ICO developers. On the other hand, ICO counsels are people who are highly skilled in virtual currencies and industrial projects.
2. Blueprint
A wisely created draft or roadmap is essential to help investors know about your product and how it can bring revenue profit. No matter how enterprising your project is, a good roadmap is what attracts potential investors as they believe more in the results. One should ensure investors can keep an update on the team’s work, objectives, and further plans for the project. A satisfactory blueprint depicts your idea and transforms it into a real-world-based solution that generates monetary as well reputational profits.
3. Researching
A vital step in deciding the framework, in-depth research of the market, demand, and supply is needed to develop a reliable business model. Moreover, integrating the project into the crypto ecosystem becomes fundamental too.
4. Whitepapers
Whitepapers should consist of every practical detail required of an investor to generate funds. This may include pain points, product solutions, ICO descriptions, token details, applications, tech details, roadmap, team, and firm data, future goals, market fluctuations, customers, etc.
5. Web Development
The next step is to develop a website for easier navigation and data presentation for the campaign. The key here is to showcase practical applications, profits, and current goals for attracting investors.
6. Marketing and Gaining Support
Platforms like social media, public channels like slack, telegram, etc., work effectively in advertising and promoting funding events to a maximum number of people. These platforms create a higher chance for the projects to get viewed by influencers and high-net worths investors online. Moreover, events, seminars, and webinars are proven effective in networking with investors.
7. Token Sales Model
Uncapped and capped models are used to generate sales models for the cryptocurrency. Moreover, the dutch auction and reverse option (use of smart contracts after getting bids) and hybrid methods (mixing sales model) can also be used to generate an effective token sales model.
8. Smart Contracts
Smart contracts are important as they provide easier access to hold assets, transfer, sell and trade. Moreover, it is directly linked to the token wallet. A necessary audit is required to ensure the safety and smooth functioning of the contract by a firm or individual.
9. Crypto Wallets
Wallets are used to receive, send, and store ICO assets. One can look for an ICO software developer to design the perfect token wallet for you.
10. After Sale
Once the ICO token development process is done, assets are then available for trade and exchange. Here, the leading purpose is to deliver value to the community and connect with the audience to create the ICO.
11. Publishing on Exchanges
The last step is to list tokens on crypto exchange platforms for outcome and marketing.