Prior Factors To Consider For Investing In An ICO
Explore the factors to consider before investing in an ICO
In recent years, the Crypto industry has gained massive popularity among the people. Experts in the crypto industry predict that Crypto will be ruling the future. Already, most countries have legalized cryptocurrencies. Because of these benefits, Many new tokens are introduced every day. These new tokens are launched through ICO. More than 6300+ ICO projects have been raised for the past years. The fame of the ICO will be growing till the launch of new tokens.
Tokens are created using the popular blockchain like Ethereum, Tron, and Binance smart chain. In waves blockchain, you can create your tokens independently. So before investing in ICO you should be aware and should know completely about that project. In this article, we’ll discuss ICO, how to develop ICO and what are the factors to be considered before investing in an ICO.
Let us quickly begin with…
What Is ICO?
Initial Coin Offering is the abbreviation of ICO. For the initial raising of funds, ICO was introduced. ICO has multiple features which include, It is the most popular method of raising funds for startups and entrepreneurs through crypto tokens. ICO is a crowd sale market where the newly created crypto tokens will be available for sale. Through ICO, you can raise the minimum to maximum funds. If you are a startup willing to raise funds, with the initial number of tokens, you can exchange your tokens with the investors and can raise your funds. These all functions happen in a single place(i.e) ICO. Buying an initial number of tokens in ICO will yield you massive returns in the future.
Factors To Be Considered Before Investing In An ICO
ICO started becoming popular in the year 2018. More than $18 million of funds are raised till now. The investment in ICO is growing and increasing day by day. So, there are some crucial factors to be considered before investing in ICO.
- Scalability and Uniqueness
- Popularity in the crypto communities
- Availability of supply of tokens
- Hiring the development team
- Examining whitepaper
- Type of token
- Reputation in the industry
Scalability is what in the sense the ICO should be unique and it should be capable of solving a long-term problem. Should do ground research and should be able to provide the solutions of the failed ICOs. Tokens created during the ICO should get listed in the exchange.
2. Popularity in the crypto communities
If an ICO is a trending topic or if there is more popularity about that ICO in the crypto communities, then mostly that ICO project will succeed. The token which is going to be introduced in that ICO should be known to the people. Should usually check the market and social media, if people eagerly waiting for that token to get launched then you can invest in that ICO project
3. Availability of supply of tokens
The famous theory of economics is Demand and supply. If the supply decreases, demand increases and vice versa. So you should check the amount of created tokens and the initial supply of tokens. If the token supply is less during an ICO, and if value increases in the future, demand will increase. So check the supply of tokens before investing in an ICO
4. Hiring the development team
The developers’ team will work on the programming part of the ICO project. They will work on the ICO dashboard and app development. So, there should not occur any technical issues. So hiring of the development team should be skilled and experienced. Do a complete analysis of the team before investing in an ICO project.
5. Examining Whitepaper
Completely read the whitepaper before investing in ICO. All the details about the project will be provided in the whitepaper from the scratch. So do completely read the whitepaper thoroughly.
6. Type of token
While analyzing the whitepaper, you should check the type of tokens raised. The tokens should be created using any of the popular blockchains like Ethereum, Tron, Binance smart chain, etc.
7. Reputation in the industry
Check the reputation of the ICO-providing company in the industry. Analyze the answers provided by them on forum sites like Quora and Reddit etc. verify whether the tokens they launched get listed on the famous exchanges. This will indicate their reputation in the market.
List Of Popular ICO Projects
- Free coin
- Shiba Inu
How To Develop An ICO?
For ICO development, you should follow certain steps which include,
1. Project Idea
Before launching an ICO, you should have an ideal plan and perfect idea about your project. Should analyze and do ground research for your project that it is worthy and will raise more funds. Analyze the competitors about their successes and failures. You should be well prepared and ready with a plan before launching an ICO. A perfect plan and strategy itself will bring half success for an ICO.
2. Purpose Of Tokens
You should search and decide what type of token you’re going to launch? Creating tokens on a reputed blockchain will be more perfect. The popular blockchain is Ethereum, Tron, and Binance smart chain. Tokens are created using the token standards of these blockchains. The token standards of Ethereum include ERC20, ERC721, ERC1400, ERC1155, and many more. Tron token standards include TRC10, TRC20, TRC721. Binance smart chain token standards are BEP20, BEP721. For creating the fungible types of tokens, you can create using 20 standards of the standards. For non-fungible tokens, you can create using 721 standards.
3. Assemble Team
The assembling of a team is the important factor here. For launching an ICO, you should have skilled and experienced blockchain developers, designers, a digital marketing team, a business development team, and others. The united work of these teams will lead to a successful ICO.
4. Initial Supply of tokens
After the creation of tokens, you should decide the supply of tokens. What count of tokens you are going to sell in ICO and the remaining you’re going to hold. You should be updated in the crypto market and depending on the value of tokens you can plan your supply of tokens in ICO.
The whitepaper is the document that contains the goals and deadline of the ICO project. In simple terms, it is the blueprint of the whole project. A perfect whitepaper should include the details of the company, Should explain the product, solution, teams involved, target audience, type of tokens, roadmap, level of funds, ICO advisory, rules, and disclaimers.
6. ICO website
The ICO website is the most prominent factor for developing an ICO. There is a famous proverb that Face is the index of the mind, similarly, ICO website is the index of your project. Your ICO website should be neat, clear, and impressive. By seeing your ICO website, many people will wish to start an ICO from your company.
7. Marketing Campaign
Designing and developing a project is not a difficult task. Promoting and selling that project matters here. After the development process, you should promote your project on social media and promoting sites like Facebook, Twitter, LinkedIn, Medium, and many more.
8. Developing Smart Contracts
A smart contract is a digital agreement between the startup and the investor. They run on blockchain where each and every transaction will be recorded. Smart contracts are developed by the token creators but the execution takes place in the blockchain where the tokens are created.
These are the steps to be considered before the development of an ICO.
By considering those factors before investing in ICO, You can launch your ICO successfully. If you wish to invest in ICO, then choose the reputed ICO service provider in the industry. ICO is the most ideal method of token creation and fundraising mechanism. Check the reputation of the company and the experience of its service in the crypto industry. So, choose an ideal ICO project and start investing and earn more profits for your business needs. Hope you have enjoyed this article...