ICO or Initial Coin Offering is the public sale of a cryptocurrency startup’s crypto coins (tokens) at the digital exchange. Crypto coin is a virtual currency that the company sells in exchange for a fixed price. The purpose of an ICO is to raise funds for the company’s token based project.
You must be wondering…
how to set up an initial coin offering?
how to launch an initial coin offering?
how to do an ico?
- How Do You Create Initial Coin Offering? – A Step-By-Step Guide
How Do You Create Initial Coin Offering? – A Step-By-Step Guide
The process of creating an ICO may seem confusing to you if you are not experienced in it. Thankfully, there are professional ICO companies out there that can help you set up and launch a successful ICO campaign.
Here’s a step-by-step guide to creating an ICO from scratch.
Step 1: Communicating the Idea
Since you are all set to creating an ICO, I assume you already have a plan or idea based on which your token will be developed. The first thing to do is analyze and finalize the idea so that you can proceed to the actual development work.
Write a detailed summary of your idea and project and get it announced in major cryptocurrency communities to get the initial reviews from investors and people involved in the development and marketing of crypto coins.
The feedback you receive from potential investors will help you understand whether or not your idea is capable enough of creating an interest among its target audiences, based on which you can proceed to prepare the business model. The first stage completes when you have a final model of the crypto project.
Step 2: Building the ICO Team
How would you go about building a team for a cryptocurrency startup ICO?
Now that you have a plan and an overview of the project, you know exactly how many people you will need for it. For a successful ICO, you will need a team of around 20-30 people. These will include content writers, strategists, editors, designers, programmers, and legal specialists.
Now, you can either hire the team by yourself, or you can hire an ICO company that already has all these people on the payroll. The latter option is easier to manage and more affordable.
Make sure that the people you are choosing in your team are trustworthy and reliable. The ICO projects are usually full of risk and you should be confident that your team will back you no matter what.
Step 3: Market Research
The third step is market research. Before you start developing your own product, it is a good thing to get an idea of the market to see what works and what doesn’t in the ICO world. There are already hundreds of ICOs running out there, who are all your competitors.
Top 10 ICOs in terms of the amount of funds collected in Q1 2018-
Read about other ICO projects, why they failed or succeeded, their strategies and approaches, etc, to gain an insight into this business.
This step will also help you figure out the right technologies, the blockchain, environment, software, etc to choose for your ICO project.
Step 4: Company Registration
Not all the countries allow and accept cryptocurrencies. Therefore, you need to register your crypto business in a country that doesn’t at least prevents the use of digital currencies if not legalizes it
The most popular states for the purpose include – Singapore, USA, Great Britain, Estonia, Switzerland, and Belize.
Step 5: Creating the ICO White Paper
White Paper is like the report of your ICO project. It is the most crucial and basic document as it tells your investors and users everything there is to know about the project. You need to hire an expert writer, who not only has impeccable writing skills but also a good knowledge and experience in writing ICO white papers, for this purpose.
A good white paper will involve the details of your project, such as the target amount of funds, timelines, terms to buy, project concept and technology, and the token, along with graphics to explain the various things.
The white paper should also mention the value of the company token, its purpose, and the power it gives to the holder. Here’s the typical structure of an ICO white paper document.
- Market Research
- Product Concept
- The ICO
- The Token
- Use of Funds
- Privacy Terms
Following the white paper, you can consider releasing other step-by-step tutorials, such as how to use the personal digital account, how to transfer coins from one wallet to another, how to buy tokens, etc, to help your users.
Step 6: Website Creation and Launch
The next step is creating the ICO website. Your website will be the face of your ICO project, make it informative and presentable. Do not cluster a lot of information. Just mention what is your project, when it will launch, and why people should be investing in it.
Most ICOs prefer a one-page website, as it keeps things clean and to the point. If you are planning to conduct the ICO sale on the same website, make sure to invest in a great hosting plan, as you can expect a lot of rush as the sale starts.
The things to include in your ICO website are – an introduction video, subscription form, roadmap, product description, team, PR/news, partners, ICO details, link to whitepaper and other documents, social channels, and contact options.
Step 7: Preparing Offer and Terms for Investors
Now that your ICO website is ready, you are all set to start the ICO sale, but before that, you need to finalize the sale terms along with any offers you are willing to provide to the initial buyers.
The reason why you should offer a discount to early buyers is that it creates curiosity as well as interest in your project. Also, it will help you stand the competition as many other ICOs might be starting at the same time as yours.
You also need to decide whether you will have only ICO sale or a pre-ICO as well. Generally, it is recommended to have a pre-ICO as it helps you figure out the initial response as well as bugs, if any, in the project.
You can consider to accept funds directly from the users or set up an Escrow system to ensure a higher user-trust.
Then, you can finalize other details such as the ICO timeline, acceptable currencies, token concept, and distribution system, bounty program terms, max token cap, etc.
Step 8: PR and Advertising
Another crucial thing to do before starting your ICO is to get the word out about it. You can seek the help of a professional marketing agency to do regular PR, news, and blogs about your upcoming ICO/pre-ICO sale.
Make sure to keep in touch with your agency and provide advice and guidance on what kind of content and things you need to market. An expert marketing agency will know and use all the possible sources from where traffic could be generated to your ICO site.
Make that your ICO marketing strategy include the following things:
- Email newsletters
- Social channels creation
- Promotion on the crypto forum
- Promotion on social networks
- Advertising text: article, blogs, news, etc.
- Adding project to various ICO tracker sites
Step 9: Token Launch
How to create ico token? You can choose to launch the token on any of the available platforms, as per your convenience. The tokens will likely be released to the buyers/investors soon after the sale concludes.
You may need to build a separate site to create and manage dedicated accounts of the investors, to which their tokens will be transferred. You will transfer the tokens along with the keys to the accounts to individual investors/users.
Step 10: ICO Launch
The last step, of course, is the launch of your ICO campaign. Pay special attention to the security of your ICO website as it will be vulnerable to hack during the sale.
You should continue to promote the launch on various social sites and internet platforms for as long as the sale lasts.
Need help setting up your ICO campaign? Hire professional ICO developers and marketers at SAG IPL.
SAG IPL is leading provider of ICO website and white paper development and marketing services in India. Contact us to discuss your ICO requirements or get a quote.