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How To Get Funding For Your Business Using An ICO Development?

ICO Development Services: Effective Way To Fund Your Business

By Angelika CandiePublished about a year ago 6 min read
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Fig: How To Get Funding For Your Business Using An ICO Development?

Cryptocurrency Holds Bigs For Investors

Developing your token on the desired blockchain network is one of the best ways to get into the crypto market and tap into the market’s potential. The global crypto market cap has reached above 970 billion dollars. This promising statistic gives the crypto holders hope that the future holds big for them.

Holding this much potential and the steady growth of the cryptocurrency market has attracted many business ventures to leverage blockchain technology and make a fortune out of it. ICO gave business owners a much easier way to raise funds for their budding ventures with the help of blockchain technology.

Significance of ICO

The initial Coin Offering process is a popular way to raise funds for your business venture on the blockchain network. The benefits businesses can gain from Initial Coin Offering is extensive. ICO enables your business venture to go paperless and raise funds from potential investors. The ICO process allows your business to develop a token on any desired blockchain network to help your business to build the funding it requires to kick-start the business.

Most people misunderstand the key difference between a cryptocurrency and a crypto token. The key difference between the two is that cryptocurrencies are native coins of the particular blockchain network, but tokens can be built on any desired network which is already established.

How ICO Works

Crowdfunding

The main function of ICO is to raise funds from investors. With the help of ICO, you can reach out to the public and potential investors, explaining the prospects of your business venture and raising funds by offering your crypto token. Investors or the public evaluate the future business prospects and then invest accordingly in the token.

Utility Backed ICO

The utility-backed ICOs offer the investors or public who have purchased the token to claim the company’s product or service in the future. Utility-backed tokens can be very useful for budding entrepreneurs who wish to begin their business venture in the crypto space without security. The ICO can also offer returns to investors based on the company’s token performance in the crypto market.

Security Backed ICO

This is one of the most trusted forms of ICO from the investor’s perspective. Here the tokens are made to represent a real-life asset on the blockchain network to win the trust of the investors. The tokens can be backed by assets of shares from the company as well. Even though the projects are promising, the investors might consider the risk factor of the token owner pulling out. Security-backed ICO eliminates the risk factor and enables investors to invest with confidence.

Steps involved in ICO Development

1. Roadmap creation

The journey of a successful ICO launch kickstarts with ideation. It is the stage where ICO project ideas are validated after reviewing for sustainability, viability, and feasibility. Post-to-road mapping, in-depth market research, and proper planning are a must. The evaluation of projects on how these will profit investors are deeply thought out for better outcomes. Understanding users’ pain points and solving them via your project must be key to success.

2. Whitepaper drafting

Drafting a whitepaper is a critical step in ICO development. This whitepaper is nothing but a complete report about your ICO project explaining to the investors about its key elements. The reading material generally comprises both non-technical and technical aspects of the project. And one must make sure that it is drafted in a way to draw the attention of investors. And the whitepaper plays a major role in positively impacting investors’ decisions about investing in your project. Below listed are some of the primary data available in a whitepaper:

  • What’s the focal point of your project?
  • How will your ICO project solve real-time issues that are prevalent?
  • A detailed summary of tokens with a brief overview of ICOs
  • Technical aspects of your project
  • Roadmap of the project alongside the deadline
  • What is the future scope of the project?

3. Creation and launching of the ICO landing page

A website or a landing page is as significant as a whitepaper. One must design it with the utmost attention and ensure that it is visually appealing and simple to use with appropriate informative content regarding the project. Investors normally judge a project based on the website’s quality. It will help you to get connected with the right set of audiences and also pave the route for lead generation. If your project is global and you want to grasp the attention of international investors, you must hire translators to translate your site into the native languages of the locations you desire.

4. Pre-stage of Initial Coin Offering (ICO) Marketing

Community building is a key factor that makes your project reach a wider audience. An enthusiastic community will be a pure game-changer in promoting your prophet and ICO. The leading marketing component to promote your project is social media, where various social networking sites (like Facebook, Twitter, Youtube, and Linkedin) are used for better results. Telegram, Slack, and Discord are some of the major community-building platforms. Besides these platforms, BitcoinTalk and Reddit are also used to grasp the crypto community’s attention. Below mentioned are some of the ways to promote your ICO.

5. Token creation with a sales model

Now we have arrived at where the token creation occurs and where the sales model is chosen. Listed below are some of the main sales models:

  • Soft and hard caps – Hard cap defines the maximum number of tokens sold during an ICO crowdfunding. In contrast, the soft cap refers to the minimum viable funding for a project to start its development.
  • Hidden caps can be hard or soft, but financial contributors cannot know the capitalization until the allocation is finalized.
  • Uncapped and capped model with a fixed rate – You can create a fixed rate for tokens at the early stages of ICO, usually at a discounted price, moving them to another fixed price later. These types of models encourage investors to buy in early.
  • Hybrid model and Dutch auction

6. Developing smart contracts and wallet

The development of smart contracts will help manage tokens’ info and control buying and selling them. A proper audit of smart contracts will lead the way for seamless functionality and a secure environment. On the other hand, a digital wallet is requisite for receiving, sending, and storing tokens in a 100% safe manner. Therefore, ICO launch services from an ICO development service provider involve a crypto wallet development with the functionality of rapid speed transactions.

7. Post-stage of Initial Coin Offering (ICO) Marketing

At the end of the ICO development, post-ICO marketing services have to be executed as it’ll provide complete assurance to reach out to potential investors and raise substantial funds.

Summing it up

There are many businesses out there struggling to collect the funding required to keep their business alive. The crypto market has a lot of scopes to expand your business horizon. It is the right time to kickstart your crypto business venture with the help of an ICO. It is recommended to choose the right company that can provide end-to-end ICO development service which fits your business requirements.

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About the Creator

Angelika Candie

Blockchain Analyst & Technical Content Writer

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