When it comes to generating funds for a project, crowdfunding has been the best practice followed by start-ups and companies globally. Decades ago, if you ask whether crowdfunding existed, the answer is yes! But it was conducted in the office set-ups where the investors will be invited to the companies. But now, in the digital era, things have changed to a great extent. The ICO is the recently emerged concept for organizing crowdfunding campaigns.
Are you looking for the best ICO development company to develop your crowdfunding platform? There are several such companies existing in the town that can help you in developing your ICO. As a promising concern, the company should start its role right from the idea formulation stage. In this blog, let us discuss the nuances involved in developing an ICO.
What is ICO development?
Initial Coin Offering or ICO has become the prime way for generating funds in a crowdfunding campaign. Generally, start-ups or companies in the crypto sphere would basically prefer opting for ICO. Since 2017 ICO has become a buzzword, and several companies have started conducting their fundraising activities through this sphere. Certain countries have laid their own regulations to control the functioning of ICO activities.
ICO was launched to make it simple for start-ups and companies to generate their funds and also for their token sales. IEO and STO lie in the same pattern of ICO but have little variance. Here, the investors will end up paying the assets in terms of cryptocurrencies or fiat currencies. The concept of ICO is somewhat similar to an IPO, where investors can purchase shares from a company.
Steps involved in developing an ICO
When you decide to launch your ICO for your organization’s crowdfunding campaign, you have to undergo several stages. These stages will take you through a perfect standard to create your own ICO. Firstly, you have to select the best ICO development company that can assist you in developing the ICO. Once you approach them, they will start assisting you in each stage. Let us see in brief about those stages,
- The designated ICO development company will go through the business model and analyze the prospects in every possible way. The company will go through several trials on integrating the business model with blockchain technology. Here, in this stage, the ideas will generate from the base.
- Once the ideas are generated, now it’s time to work on creating the white papers. An effective white paper is a key that takes you through the successful launch of your ICO. The white paper should contain information pertaining to the business model, details about the investors, proposed fund generation, expenditure details, etc.
- The next step is creating a user-friendly ICO launch website. This is the utmost important stage in the ICO development process. The website should provide exact communication and information about the crowdfunding campaign. This is the area where the investors will get convinced to invest their funds.
- Pre-ICO launch marketing is as important as developing an ICO. This is where you will market your campaign in a broader light. You can choose a digital marketing forum like social media to market and promote your ICO. utilize digital platforms like Telegram, YouTube, and Facebook to promote your campaign.
- Along with building your ICO website or apps and ICO tokens, you can also develop your Ethereum DApp, which will be a perfect platform to conduct your ICO. DApps built with smart contracts and ERC-20 token functionality has attracted companies to prefer DApps along with ICO development services.
- When developing a decentralized ICO, smart contracts play a major role. Blockchain utilizes smart contracts for their ability to be transparent and reliable throughout its functioning.
- The ICO development company will start developing the cryptocurrency wallet. The major purpose of the wallet is to send, receive, and store ICO tokens and coins.
- Upon creating the wallets, the post-ICO launch services begin. Now, the ICO is open for token sale and exchange. At this stage, the investors will exchange their fiat currencies for ICO tokens or coins.
- To enhance the marketing and advertising, you can also publish your ICO tokens on multiple cryptocurrency exchange platforms.
What are the criteria to select the best ICO development service company?
Analysis of the company’s performance in the recent past
Developing an ICO is the biggest investment that you make for generating funds for your upcoming projects. So, when you take up a huge step, you need a company that can assist you in developing the ICO. The concern you plan to hire for creating the ICO should be well-versed in this respective field. This will help you create a robust platform. And Also, the company should have good resources to support the entire ICO process, right from ideation to post-launch services.
Have a tight look at the jurisdiction norms
Even though the ICO is a popular way of generating funds, it also has its own pros and cons. Because of this, certain countries have laid down strict guidelines for conducting ICO. Countries like India and China have banned the sale of ICO tokens. On the other hand, countries like the USA and UK have their own parameters and restrictions for conducting ICO.
All you have to do is understand the rules and regulations prevailing in your country before getting into the development phase. This will help you in planning the functionality of your ICO in a better light.
Check the company’s proficiency in blockchain technology
According to several data and reports, blockchain tops the list as the most highly preferred technology among industries. Followed by that comes artificial intelligence and virtual reality. Almost all industries are focusing on the blockchain network for their reliability. In ICO development, it plays a major role. Hence, when you hire an ICO development company, it is important to analyze their proficiency in working with blockchain technology.
Organizing a crowdfunding campaign is not an easy task which requires a lot of preparation beforehand. ICO, an advanced crowdfunding mechanism, is drawing attention from companies to generate their funds. Are you ready to start with your ICO development activities? Begin your action right now by finding the best ICO development company.