There is one feature of cryptocurrencies that may have been misunderstood by all and sundry. Initial Coin Offerings (ICOs) are gaining popularity. They are being championed as credible sources of alternative funding and quite the worth it option for everyone who is looking to advance their project so that it may gather the financial momentum to transition into a full-blown enterprise.
Here are our practical tips on how to run a successful ICO. We will start with what we have come to know from experience.
- Make Sure to Target Your Product Well
You will need a plan to run your ICO, and this goes beyond jumping on the bandwagon and relying on individuals who are looking to turn a quick buck. If you want your enterprise to set off and to endure in the long-term, you will have to ask yourself: Who is my audience?
Adjusting your whole company transactions accordingly after that may be what makes or breaks your business. You will have to rely on investors who are genuinely interested in your project and are not in it to acquire UTILITY TOKENS (UT) with arguable value.
You will have to make a great presentation of your product for starters. Outlining your goal in the White Paper will be immensely helpful. More crucially still, you must avoid changing anything you put in the White Paper.
- Make Sure You Hire the Legal Firepower to Support You
Legality has become a contested issue the world over. You may note that China, for example, has banned all operations pertaining to coin offerings and exchanges. On the other hand, neighbouring Macau and Singapore have been there to pick off the slack quite expediently.
Now, more importantly, you will have to meet regulatory demands. In general, there are a few jurisdictions that is worth noting in general:
- Singapore & Macau are the friendly custodians of all things cryptocurrency;
- Switzerland is a moderately regulated place and the country is more inclined to let you push ahead with your ICO;
- The United States is a patchwork of state legislation and national laws – it is generally difficult to establish an ICO there, especially if the bulk of your operations is elsewhere
You will need to still consider what local legislation you are participating in and that is a job better left to the experts who understand legalese. With this in mind, you will need to hire top gun when it comes to regulations.
- Know Your Customer (KYC)
If you are interested in successful practices, you will have to be equally prepared to get to know your customers. Identify what your investors want, but also seek to know what sort of people they are. Complying with regulation also requires of you to be responsible for your revenue streams and where they come from.
- Offer Tokens as Bonuses
Do not think that token bonuses alone will sway investors your way. Rather, you can use a powerful mix of token bonuses on top of your current offer to show a token of goodwill. Remember that some investor may seek to make a quick kill by acquiring a bulk of tokens and then selling them off. A smart move would be to block any transactions for at least a few days after the launch.
- Hire a Company for Post-ICO Services
Other than legal counsel, you will need a professional to be in charge of your project. Ensuring the validity of your security protocols, testing against possible hackers attacks and creating a healthy ecosystem are all mandatory when it comes to choosing the right course of action. Do not hurry up to overlook the usefulness of company that specializes in maintaining the blockchain based project.
More importantly, such companies usually provide you with much valuable insight when it comes to determining:
- The best legislation to launch your project in;
- Identifying your long-term goals;
- Anticipating any unsavoury changes in legislation
How does a post-ICO legal counsel differ from hiring lawyers? In simple terms, you want to avoid hiring lawyers as this may indicate that you have already crossed some sort of a local cross line, leaving you vulnerable to legislative action, but also leading to bad press for your project.
ICOs are definitely a powerful way to raise money and definitely to be considered the more innovative your idea is. You will be able to find genuine investors who want to be part of something meaningful and revolutionary.
If your idea matches the prerequisites of the majority of investors, you will be in a good position to push ahead with a remarkable project yourself! We welcome you to go ahead and try finding the investors. But do consider hiring some heavy guns to assist you. China is a good place to look for capital despite the unsavoury ban.