Beginning cryptocurrency lovers have a wonderful opportunity to become involved with an ICO by making a small initial investment because it frequently starts with a cryptocurrency at a cheap price.
Despite this, taking part in an ico software development carries both risk and reward. Investors may lose more money than they initially invested if there is minimal demand for the token. On the other hand, ICOs are intriguing, and it’s critical to balance the risk and return.
Step 1 : Form an idea
Although it may seem relatively obvious that you need an idea in order to launch an ICO, this is a chance to share ideas with others. Additionally, you can choose the specifics of your coin’s operation and general objective. For instance, some coins concentrate on certain niche markets, developing blockchain solutions in front of Web 3.0, while others merely want to be a coin that people can invest in and trade with.
Step 2: Put together a project team
Putting together a team enables you to contact individuals who are probably authorities in many of the fields in which you require information. This covers matters of law and regulation as well as potential applications for the coin’s functionality. Before the coin is made available to the general public, this team can offer a lot of information and address any project issues.
Step 3 : Write a whitepaper
Many cryptocurrencies start with a whitepaper that describes the tokenomics, goal, and business strategy of the coin, among other things. The paper, in theory, gives investors all the information they require to decide whether to purchase the coin.
If the coin is solving an issue, the whitepaper should explain what it is solving and how it will solve it. For maximum effect, host this on your website to attract new followers. You should also include a product roadmap in this document that outlines your goals for the coin’s future.
Step 4 : Smart contracts
The creation of a smart contract is one of the last steps in the ICO creation process. There are several choices besides the industry standard and most popular ERC-20. Furthermore, OpenZeppelin offers a tool (and template) to generate a smart contract with little to no input from you if you are unsure how to accomplish it. Once this is finished, run it and give it a close inspection.
Step 5: Deciding on a Coin Sales Model
The following step is to pick a sales model from among the several that are available. Your decision may be influenced by a number of variables, including where your headquarters are located (because many nations have varied regulations regarding ICOs).
There are eight different token sale models that you can use for an ICO.
1.Fixed rate offer (Uncapped)
According to this approach, a token would be offered for sale at a set price, enabling early adopters to buy a small number of tokens without the price volatility typically associated with the cryptocurrency market. Instead, it will only do so for a set amount of time before buyers of the token must pay the going market price.
In a soft cap sales model, the creator of the token chooses the minimum ICO fundraising amount and sets the price in accordance. As a result, he demands the sale of a specific quantity of tokens for a specific sum, following which the ICO will run until the predetermined end date and time. This increases the likelihood that the fundraising will be a success.
With a hard cap, as opposed to a soft cap, the maximum amount of capital required is decided by the token developer. Depending on which occurs first, the ICO expires at this cap or at the conclusion of the ICO duration. It’s possible that as a result, prospective investors won’t have the chance to invest in the ICO, making it unlikely that some will think about doing so in the future.
4. Hidden cap
Investors won’t be aware of the amount of funding until the ICO because of concealed caps. They won’t be aware of any further targets until the ICO launches. This would keep important data under wraps until the public needs to know them, which can be helpful if there is a lot of speculation about the ICO.
5. Dutch auction
According to the Dutch auction process, the value of a cryptocurrency coin starts at the highest selling price. The price then decreases to a point where all of the bids received will cover the tokens being offered.
This is not the best way to launch an ICO for someone, especially if it’s their first time, because it’s very complicated. It may not be the best if the token developer desires a straightforward process because it operates counter to how an auction would typically operate.
6. Reverse Dutch Auction
The reverse Dutch auction should theoretically be the opposite of the aforementioned, although this is not exactly accurate. It is simpler, which is good news. There are only a certain amount of tokens available, and throughout the ICO’s lifetime, an equal number of tokens will be sold each day. So, for instance, 20% of the total token supply would be sold each day if the ICO lasted for five days.
If there is a lot of interest in the ICO, this relatively straightforward mechanism regulates the allocation of tokens.
7. Collect and return
Buyers can place bids above the predetermined price in this approach, but there is one. A portion of the capital may be returned to investors when the price exceeds a predetermined threshold. Investors will have to conduct numerous smaller transactions in order to obtain larger sums.
This increases the number of persons who can take part in the ICO development service . The drawback is that it results in increased transaction fees for users.
8. Dynamic roof
The dynamic ceiling inhibits speculators with substantial sums of money from purchasing several coins at once. Instead, by requiring consumers to make smaller payments frequently over the course of the ICO, spreading out their spending. This provides smaller investors a chance and prevents major investors from controlling a significant quantity of coins.
Any of these selling methods can be used for an ICO, although one will probably function better than others depending on the ICO. Prior to releasing your token to the general public, it is crucial to take this into account.
Step 6 — Trade your ICO and coin
Investors must have a strong interest in the project before an ICO is launched in order for them to purchase a new coin. If not, learning how to start an ICO will be of little use if there is minimal interest in it. To achieve this, you must market an ICO and the coin to inform people of the rewards and the objectives. Setting up social media and using pertinent postings or news websites to spread the word are two ways to accomplish this.
Post about your currency in forums where people discuss cryptocurrencies and add it to ICO calendars. These are all excellent methods to spark conversation about your upcoming ICO.
Step 7: Finally, launch your ICO
Ask exchanges like Coinbase, Binance, Kraken, and Gemini to list your ICO before you launch it. If you want to increase your chances of getting listed on these exchanges, you should (at the very least) give them the information below:
- coin ticker coin name
- a succinct explanation of the coin and the idea.
- Any branding that exchanges would require, such as a scheduled release date for the logo
- source code, following examination
You are now aware of how to Launch an ICO after reading this!