How to Get an Initial Coin Offering (ICO) in 5 Simple Steps
Learn how to get an ICO in five simple steps from determining your technological needs to constructing and implementing a strong marketing strategy.
Published August 30, 2022.
An Initial Coin Offering (ICO) is similar to an Initial Public Offering (IPO) where a new coin is introduced to the crypto industry. A crypto project can get an ICO to raise funds. Interested individuals can join the ICO by purchasing the project’s token offering. The token’s utility is closely tied to the product or service the project is providing.
Here are five simple steps on how to get an Initial Coin Offering.
Step 1: Determine Your Technological Needs
Assess how blockchain technology will integrate with your daily business activities and how you intend to use it to improve your products or services. There are legal implications that will affect your technological choice and your platform offering.
Therefore, how your business accepts crypto, stores it, and educates customers and investors are essential to the compliance step. It should be based on a legal framework applicable to your ICO.
Step 2: Choose a Jurisdiction for Your ICO
Since U.S. securities laws apply to ICOs in all the states, you can launch your token offering outside the United States.
Some crypto-friendly countries have favorable laws, like a broad pool of authorized investors and fewer financial disclosures. Additional benefits include better tax treatment and lenient penalties for non-compliance. You can consider investing in countries such as Malta, Gibraltar, Singapore, and Switzerland.
Step 3: Write a Detailed and Clear White Paper
Your white paper presents information on how your project works. As such, a good white paper should raise the confidence and trust of potential investors. This document should contain legal statements about the securities laws and other regulations applicable to your ICO. Previously, the Securities and Exchange Commission (SEC) profoundly mentioned a crypto project’s white paper when it wanted to shut it down.
Step 4: Select the Best Launching Platform
You need to choose the platform where you will be conducting your ICO. Previously, most projects chose to launch their ICO tokens on the Ethereum blockchain. Ethereum is well equipped with ICO development tools and smart contract functionalities to launch ERC-20 tokens smoothly.
However, Ethereum’s high gas fees and scalability issues have created multiple Ethereum alternatives. Platforms like BNB Smart Chain (BSC), Solana, Polygon, Avalanche, etc., have merged as ideal ICO launch pads because of their low-cost transaction fees and high scalability.
Step 5: Marketing
Lastly, develop a well-defined marketing strategy to help you reach out to potential partners and investors.
This can include developing a website any interested parties can be referred to who are looking for information. Supplement this with social media marketing by posting engaging content that leads back to your website and utilizing paid advertisements to reach your target audience.
Also, consider providing limited free coins to potential users as well as a space where feedback can be discussed.