Even though it’s done online and doesn’t require much physical coordination, starting an ICO that will give the results you’re after isn’t an easy task at all. This is mainly due to the fact that it involves various details that shouldn’t be overlooked.
Back to the basics, ICO is short for initial coin offering and represents an innovative way small businesses utilize to gather funds by selling their own tokens. It’s related to digital money and cryptocurrencies.
Now, are you ready to discover more about all of this and be prepared to start an ICO? Then, read on!
When Is the Right Time to Launch an ICO
Usually, small businesses, microbusinesses, and startups are the ones to launch an ICO when they can’t manage to gather the needed funds on the traditional financial markets. This way they can speak to more investors at once and present their ideas and solutions more clearly before the public.
Therefore, if you feel like going around the strict regulations and high costs imposed by the traditional markets, you should definitely consider funding through ICOs.
Crowdfunding – Similarities and Differences
A lot of people call ICO crowdfunding and use the two terms intertwined. But they have their differences. Above all is the fact that in the case of crowdfunding people give money as a donation without expecting anything. They only support the idea. On the other hand, during an ICO, investors give their money in exchange for a big return on investment that they hope to gain in the end. Basically, they hope that the tokens they buy will have a way higher value than when they purchased them.
As for similarities, it’s obvious that both ICO and crowdfunding involve providing funds and helping business projects become a reality.
Supply of Tokens
Before you start your ICO have in mind that it’s best to have your supply of tokens previously planned. In most cases, businesses tend to pre-determine their value, as well, so that they know exactly how much money they ask for and how much they get.
Thanks to this they can meet their funding goals and count the correct amount. Another thing to consider is the fact that once the offering commences, the supply usually can’t be changed.
Featuring on ICO Lists
Eventually, it’s important to show your offering to investors, attracting more of them to join. And one of the most efficient ways to do this is by joining an ICO list. However, for this, your tokens should reach a high value and get noticed by analysts and other experts in the field, who will later put them on the lists.
Moreover, those that are on these lists are thought of as more serious and have more chances of convincing more investors to join their offerings.
A Final Word
What are your opinions regarding this matter? Are you planning to launch an ICO for your business? Were these things helpful? Talk to us here in the comments section!