Initial Coin Offering, also known as ICO, is an organizational event where a corporation sells a brand new cryptocurrency to raise its budget. Investors, usually the newer ones, receive the same in exchange to contributing financially.
If you are considering the core meaning of ICO, it can be deemed to be similar to the IPO of the stock market. However, there’s a hitch.
Although ICO can help you earn a considerable amount of profit, it can still be pretty risky. For instance, as Initial Coin Offering is based on blockchain technology, it’s not regulated by the government or any other such organization.
Therefore, using it without constant evaluation can be pretty risky for you. Additionally, you may also end up getting hacked.
Due to this reason, many corporations tend to opt for a Marketing Affiliate Network while creating an ICO-based event. It helps them manage everything properly and cuts down on the risk of making human errors or hacking issues entirely.
ICO – How Do They Work?
If any organization decides to create an ICO-based event, it’ll announce the date, buying process, and related rules first. It should be done at least a week before the initiation of the procedure. On the requested date, the investors can attend the event and buy the currency.
While you are getting into an ICO event, it’ll be essential for you to pay with another Cryptocurrency. In this aspect, Bitcoin has always been the go-to choice for everyone. However, now, many people are also using Ethereum for their purpose.
The price of the token and the number of sellable items can be either variable or fixed. Here’s how it generally works in a Crypto environment -
- Fixed Price And Number Of Tokens: The organization has set both the number of the price ahead of the date. An example of it would be – offering one thousand coins for USD 1 each. It’s a more popular option, as it’s much more transparent and, therefore, captures the attention of many people.
- Variable Price And Fixed Token: In this regard, the company will sell only a fixed number of coins, like the last option. However, the pricing strategy will depend upon how the sales segment is going. If you are earning a lot, you can simply increase the price of the currency from USD 1 to USD 2.
- Fixed Price And Variable Token Count: It’s a more direct approach to selling your cryptocurrency, as you are offering them at an already-revised price. However, the number of tokens will depend on your sales and the overall token count. An example of this process is – you’ll sell your tokens at USD 1 until the ICO event ends.
How Do You Start An ICO Event?
Starting out an ICO event is pretty straightforward. All you need to do is to come up with a Cryptocurrency token, set up a date, and make proper selling rules for everyone.
However, if you want to raise your corporate funds through this event, taking the more straightforward route shouldn’t be ideal for you. Instead, you will have to opt for something much more structured and well-designed.
Here’s what you need to do to achieve the same -
- Creating a roadmap to long-term and short-term goals.
- Outlining the whole scenario of your project in a whitepaper.
- Researching about the previously-held ICO events (the successful ones only).
- Curating a website and implementing a marketing campaign through it.
- Improving your overall social media presence.
An ICO event tends to be pretty huge as a whole. Therefore, it will not be possible for you to pull it off without a team. If you are a beginner, then we’ll ask you to opt for a professional squad that’s been doing it for years. However, if you know how things usually work, then you can create a team of your own.
Final Thoughts
The core procedure of Initial Coin Offering is pretty straightforward. Nonetheless, if you want to do everything in an organized manner, you will have to plan a lot more than usual.
Hence, if you want to ensure that everything is going up to the plan, make sure to hire a specialist. They will help you from creating the basics of the event to finishing it up as you had planned it.