Aloha comrades all friends! Today's article is written based on a blog post from WAVES that calls "ICOnomy 0: How to run an ICO". In this post, we will discuss some of the styles of the ICO approach that can be utilized in the real economy and provide a brief explanation of how to implement an appropriate ICO campaign for a project. Previously ... it should be understood that so far the legality status associated with ICO is still intimidated, so disclaimer first that the tips in this article still contains the risk on the legal side. Therefore, it is important to ensure that you must be careful not to violate any applicable laws or laws in your community.
The most basic question people ask is how to implement ICO? The answer to that is you have to use a blockchain token in your product, not to promise dividends and never once try to sell the equity in your company. The most ideal setup is that the tokens you sell in the ICO must be part of your system / application. The usual thing people do is create a new cryptocurrency, then sell their tokens via ICO or utilize existing platforms like WAVES / ETHEREUM to create new tokens and then integrate them into your product
What is the product? Here we often see startups trying to apply existing businesses to blockchain technology. Of course, not all types of products can make fundraising through the ICO approach. Maybe you can try to think how the blockchain tokens can be applied to your product, then logic to make an offer through ICO. Some considerations that may be useful include:
- Why do I need a blockhain token? Does my product require blockchain? What are the benefits of blockchain technology on my products?
- How can I connect a blockchain token to my product's functionality? Can I integrate it into my app?
- How can my token attract interested investors? Is there a mechanism that connects its value to the success of my product?
- Will my offers comply with applicable laws and regulations? Remember: do not occasionally guarantee profit because you can deal with the body of punishment in the future.
What are the types of projects that can raise funds through the ICO (Initial Coin Offering) approach?
- Cryptocurrency. It is part of the total initial tokens created to sell to investors. Well ... this token is part of a system required as a consensus algorithm. You will not be able to create public blockchain without a token network.
- What are the products that require an internal currency. For example: social networks where services are presented are paid using an internal currency, and games that require an internal currency as part of the game.
- Product kickstarter beransurkan, for example: you sell a voucher in blockchain that can present the final product. In this case a kickstarter can combine market blockchain that is layman and investors can trade your token products.
In addition, once you have determined your product model, your entire team must be able to deal with technical problems, including:
- Determine which platform you will use so that your token can be created. Are you going to use existing blockchain platforms like Waves and Ethereum? Or will you create your own version of blockchain?
- Determine how much fund you want to collect, what quantity of tokens to sell, and how many tokens will be owned by the founders. Here it is advised not to save more than 30% of total token, because when your token enter the market crypto, people will be afraid (worry) if you sell (dump) token that you hold.
- Determine how long the ICO period will last. Will there be a discount for a more participating investor first? It should not take too long ICO, 1 month is more than enough. If you have reached the target fund you need, then you can end it more quickly, for example: SingularDTV and Golem Project terminate their ICO in less than 15 minutes.
- Before conducting ICO, make announcements in advance so that people can know and maybe the announcement in Bitcointalk is felt obligatory. Here you will get lots of feedback and not everything will sound positive. Nevertheless, it will be able to help you to refine your project again.
- If on average, you get a positive response then you can immediately determine the date of the start of ICO, do some marketing in social media media and set up an ICO site. (Oneyesoneno additional note: if you feel complicated ... you can use WINGS platform to implement your ICO because all tools tools have been provided).
- After your ICO period ends and runs successfully, then you can distribute tokens to investors.
- Finally ... take full advantage of the funds you have earned and create a great product to increase the value of your whole project.
Once again ... the most important point is to make sure that your product requires blockchain technology, then you must be willing to work with your community, provide valuable products and never occasionally violate applicable laws. ICO will be a new model of how the future of business will operate and hopefully you will become one of the evolved people.