The cryptocurrency industry is growing at an unprecedented pace. Trading, and exchanging digital assets such as digital tokens are all on the rise. The most popular trend in cryptocurrency technology is the Initial Coin Offering fundraising model.
ICO: Capital for startups and cryptocurrency projects
ICO – Initial coin offering This is an unregulated method of crowdfunding through the use of cryptocurrencies and digital currencies. It is the source of capital for startups and businesses. It’s based on a smart-contract system in which a portion of the newly launched cryptocurrency will be traded to investors in exchange for legal tender or other cryptocurrencies such as bitcoin, and Ethereum.
1. Some ICOs may sell digital tokens rather than issuing actual cryptocurrency.
2. Most Initial Coin Offerings will choose Ethereum for their payment options when buying or selling shares (Digital tokens).
How can you make your ICO a success?
These two elements are essential to making your Initial Coin Offering a success.
1. Visually attract your investor
2. Get in touch with your investors technically.
These two factors were the key to the success of successful ICOs.
To Attract Investors Visually
Investors are at the core of any Initial Coin Offering business. It is important to attract them. We have listed the various ways you can attract investors.
First, notify investors – Create an ICO website to raise funds
Create curiosity about your project and make it viral. Write short, but informative content explaining the purpose of your project.
You need to grab investors’ attention and convert them by – Publishing exclusive deals.
They must be satisfied with – Affordable pricing plans.
Engage your investors technically
This is where you need to focus more, as investors are smart and will be able to analyze the technical aspects. You will be able to attract investors if you keep an eye on the technical aspects of your ICO execution. They will leave as quickly as you enter if they don’t do so.
This list outlines the essential steps to execute a successful ICO. However, it is not enough.
The Major Steps to Initial Coin Offering
Step 1 – Create a new cryptocurrency that is based on an open ledger, Ethereum, or counterparty.
Step 2 – The project team should assign an arbitrary value based on the current net worth.
Step 3 – Calculate the price dynamics based upon market demand and supply.
Pricing Methods for Tokens
1. Undetermined Price – This price is fixed for token notes, which allows 100% ownership of tokens to a single investor.
2. Fixed-price – The developer set a price for a new token. This type of ICO comes with a freeze period. Investors can’t trade their tokens until the freezing period is over.
3. Dutch auction – This type of ICO token price begins with the highest price and decreases proportionally.
4. ICO with Price Rise – Early investors receive the best price and token growth rates according to time.
You must mention all details, other than the ones mentioned above, in a white paper. It should include technical aspects, total time, targeted funds, estimated costs, and all other pertinent information.
Errna experts can help you understand the ICO business. Errna offers a complete solution for ICO businesses. It offers A-Z solutions for all ICO processes including token creation, smart contract writing, launching an ICO website, and releasing white papers.