How I Used the ICO Development Services of a Company to Launch My Own Token
initial Coin Offering commonly referred to as ICO is revolutionizing the emerging economic model. It is an alternative fundraising mechanism for startups or new project developers to sell their crypto tokens in exchange for fiat or other cryptocurrencies.
What is ICO?
Initial Coin Offering is a new type of fundraising mechanism that deals with crowdsale of crypto tokens. So how do you do an ICO? The idea is simple: an entrepreneur or a team will propose a crypto project which is based on specific blockchain technology or network and will be released for public use in a limited quantity of tokens or coins. The entrepreneur will announce a fixed amount of these tokens for sale. You have a 1–3 months period from the date of signing the contract with a bank to deliver the funds, so it is an urgent purchase of tokens. Once the purchase is done, the company will integrate the token in its’ website, for users to register for it and can then start using the token as a means of payment.
How to launch a successful ICO?
#1 What are ICOs and what’s the difference between a token and a coin? At its very core, an ICO is just like an Initial Public Offering or IPO. For example, in an IPO the organization issuing the stock is the issuer, in the ICO the issuer is the team that will be selling the token. For example, if you have a startup for a new mobile app and you want to raise money to develop that app, you could do an ICO or simply just release an open-source prototype of the app and see how people react to it. I will refer to the latter as a crowdfunding campaign, to make things easier for everyone. You can’t invest directly in an ICO. It’s only for purchasing tokens on the project’s public address (usually called the ERC20 token). ERC20 stands for Ethereum protocol’s token standard.
The success stories of ICO companies
ICO offers a lot of advantages over the traditional means of funding such as venture capital or debt. The main advantages of ICO for startup business are the low cost, reduced dilution, flexibility, and quicker response time. The digital token sale has become a favorite fundraising method for cryptocurrency startups. In the first half of 2017, the collective funds raised by ICO startups in the $14.5 billion range (8 percent of the global VC funding) reports Steemit. The success of ICO also gives hope to the long-term prospects of the crypto market. A total of $1.6 billion worth of the digital tokens have been sold since the birth of the market. During that time, more than 100 projects have released ICO tokens.
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Conclusion
I’m sure that as more of us embrace the new possibilities brought by the digital economy, we’ll come across even more creative ways of bringing our vision to reality. I encourage you to pay close attention to what you read here and please feel free to share your own stories in the comments section below.
