ICO stands for Initial Coin Offering. It is an unregulated method of raising funds equivalent to crowdfunding. The only difference is that ICOs run on a decentralized blockchain. Up to this year, Startups have raised more than 6 billion U.S. dollars through ICOs. So, it is valid to say that launching an ICO is more effective than looking for funding through stock exchanges or venture capitalists.
Because of this, ICOs are becoming popular among startups with innovative, new-age ideas. If you are looking to get more investors for your brand-new project or startup, launching an ICO might be the way to raise the money required to achieve your goals.
So, how does an Initial Coin Offering work? In an ICO, a startup can make money by making and selling their digital tokens. Tokens are usually created on the Ethereum platform which is the most popular ICO platform among investors and organizations. After creating custom tokens, these are offered to the public.
Investors buy tokens with Bitcoin or Ether, the native currency on the Ethereum platform. A token can be used to get access to the products and services offered by the startup. For example, if a startup is launching a gaming app, they can offer tokens as a method to buy in-app items. A properly set up ICO will help you get the funds you need for your project. But, ICOs are not only for fundraising. If done right, it can bring loads of other advantages too.
For example, when a person invests in your business, they believe in you to become successful. When you finally put out your product/ service, you will already have a good customer base willing to use your output. So, you don’t need to put a lot of effort into getting customers or users when launching the product.
ICOs are a fairly new concept in the business industry. So, a lot of investors are eager to invest in initial coin offerings of good companies. There are many success stories around ICOs. One of the best examples is The Golem Project which raised 8 million dollars in under 10 minutes. Aragon raised 25 million dollars in just twenty-six minutes. So, there’s a high chance for your ICO to succeed.
Like all things, there is a lot of work that goes into developing ICOs. The first step is the planning phase where you should outline your whole business plan including the product/ service you will develop with the funds raised from the ICO. After creating tokens, you need to make sure that the ICO is safe from attacks.
A large number of transactions happen during an ICO. So, it's required to include extra layers of protection such as passwords, authentication, smart contracts, and so on. As the final step, you will also need to get the word out about the ICO to potential investors worldwide. Completing the whole process is going to take time and effort on your part
If you want to launch an ICO, we offer all of the above ICO development services and more. At our ICO development company, we strive to give you the best from ICO token development services to ICO launching services. Our team is dedicated and has a knack for building intricate models of cryptocurrency. We will ensure the completion of your ICO token development before your ICO launch. So, you can focus on your business while we set up the ICO for you. Ready to start developing your ICO? Send us an inquiry to start the discussion.