Businesses around Blockchain and cryptocurrencies are becoming more and more popular among entrepreneurs. Blockchain and Crypto businesses like NFTs, Crypto exchanges, Crypto payment gateways, Crypto mining, and many more are becoming more profitable businesses recently. The factors that an amateur should look for before starting a business in crypto are making your business idea unique to stand out from the crowd, researching the crypto market, an initial fund for your business, architecting your business, a requirement of a strong team or resources, and being aware of the risks involved in it.
Among these factors, the initial fund is the most important one because it has an impact on all other factors. Building a strong team and accessing all the resources that your business demands is possible only if you have the required funds. Raising funds through the crowdfunding method has been the traditional method and the only solution so far. Recently Initial Coin Offering (ICO) is one of the most highly used crowdfunding methods by which funds are raised precisely for crypto businesses.
Fundraising fueled by one of the Blockchain application
Ever since Initial Coin Offering came into the crypto space, it has become the savior for entrepreneurs who wish to start their businesses around cryptocurrencies. Fundraising through ICO reached its peak as soon as it came into existence. Many who have, made use of it have become millionaires within a short period.
The popularity of ICO has given birth to other forms of crypto financing like Security Tokens Offering (STO), Initial Exchange Offering (IEO), and Initial DEX Offering (IDO). Even though these methods came in the line of crypto fundraising, till now fundraising in the crypto space is largely dependent on ICO because of its easier process and takes very little time. This also paves way for new business in the crypto like token development, Altcoins, and many more. Let us know what this ICO is all about.
ICO - A new way to raise funds
As mentioned before, an Initial coin offering is a crowdfunding method that is similar to an Initial public offering (IPO). In IPO, funds are raised by offering the stocks and shares to the public. Meanwhile, in ICO, funds are attained by distributing crypto assets (fungible crypto tokens). Crypto tokens that are created for ICO purposes have some utilities within them. The token buyer can make use of it, or it has similar value to cryptocurrencies by which they can trade cryptos. These tokens can also be used for developing a community in the crypto space. One such highly reached cryptocurrency is TRON. Firstly, it was created as a token. Later, when it earned high profits and popularity, it has become a cryptocurrency by owning a separate blockchain.
The reason why ICO has gained more attention than IPO is that, to raise funds using IPO, you need to have an established organization or business that should have reached the unicorn status to conduct an IPO. Whereas ICO is backed by blockchain technology which is a decentralized network that makes the process easily accessible. As an entrepreneur, it is quite difficult to raise funds using IPO, and this has given the rise to ICO. Let us see more about the benefits of launching an ICO to raise funds.
Prominent benefits of using ICO
- You can utilize an Initial coin offering at the early stage of your business to raise funds, whereas, in IPO, funds can be raised only if an organization has attained unicorn status.
- ICO is automated through smart contracts that are backed by blockchain technology.
- The funds are raised using tokens that have services of a product or some utilities.
- When it comes to the process of conducting an ICO, it is much more efficient.
- There isn’t a need for intermediaries or middlemen for an ICO this makes it highly profitable because there won’t be any need to pay for those middlemen.
- There are no restrictions for business types unless the business is backed by cryptocurrencies.
- ICO yields a large sum of money because of high liquidity.
- You can build a strong community using ICO, which helps in the userbase for your business.
- Mostly suitable for entrepreneurs and startups, especially for their initial funds.
How to get started with ICO crowdfunding
The first step would be working on an innovative business idea, It will ensure an effective fundraising strategy. The next step would be working on the legal regulations of the country you wish to launch your ICO. Once you deal with the legal regulations, you will need utility tokens to raise funds. You have to choose the token standard and blockchain by which your token should be created. After creating the tokens, you will be needing ICO website/platform to distribute/sell your ICO tokens.
Creating an ICO platform and creating your token can be done in two ways. Either you can create it from the scratch on your own, or you can approach an ICO script provider. Let us look into these two methods in detail.
1. Creating it from the scratch
If you plan to create your ICO platform and ICO tokens on your own, you need to have all the technical knowledge of blockchain technology, token standards, and smart contract for creating tokens. To write a smart contract, you need to be an expert in solidity.
2. Approaching an ICO script provider
Reaching out to an ICO script provider is the best option. Because an ICO script provider will help you with writing the white paper, creating a smart contract based on the token standards, token creation, and ICO dashboard creation. The ICO script is a pre-developed one, so it will not take much time to customize and deploy the ICO website.
Another advantage of reaching out to the ICO script provider is that you can just drop your business requirements. They will take care of the rest that is they will handle the end-to-end ICO development in a hassle-free way. Among these two methods, entrepreneurs prefer hiring an ICO script provider because it is more practical when compared to the other method. It is budget-friendly and less time-consuming with a simple process.
Getting a feature-filled ICO script from a trustworthy provider
Getting your ICO script from a reliable ICO script provider is an important step, and if it is done correctly, then the remaining process will be at ease. To find a reliable ICO script provider, you need to look for their ratings, reviews, portfolio, services they provide, and the amount they charge for their services. If you choose an ICO script provider considering the above-mentioned factors, then your fundraising process through ICO will be like a walk in the park. Once you have found a trustworthy ICO script provider, you can convey your requirements to them, and they will support you with the best services. They will have all the technical knowledge and resources that are required for launching ICO. No wonder you can launch your ICO within 10 days if you are backed by a reliable ICO script provider.