7 Tips On How To Launch A Successful ICO For Your Cryptocurrency Startup

Published on:

Are you in the midst of preparing an ICO for your startup? Take five minutes to check out these 7 tips that will make it a successful one:

Crowdfunding has been all the rage in the past few years, and for a good reason, because it allows people with ideas to acquire the means and get their companies up and running. It’s great because technically, you don’t need to have any cash to start your dream project. With the emergence of cryptocurrencies, crowdfunding has become even more interesting. Initial coin offering, or ICO, allows you to gather the capital you need, without having to jump through various legal hoops. You raise the funds for your cryptocurrency venture, and your early backers get coins, it’s as simple as that. Or is it?

Let’s a look at 7 tips, brought to you by Rushmyessay UK, which was one of the first writing services to start using cryptocurrencies, in order to launch a successful ICO.

#1 Establish Specific Goals

Your ICO should be treated just like any other campaign, and every campaign needs to have goals which are set right from the get-go. In this case, it means that you need to provide a clear explanation about where you plan to take this project and answer all the crucial questions along the way because nobody is going to back something they know nothing about. In order to get your backers to trust you, you need to provide them with a whitepaper and a roadmap to your ICO. Your whitepaper serves as a blueprint for your startup which explains the entire process in detail, including the way the system is built, how you plan to develop it, and so on. Your roadmap should work like a timetable for your ICO venture, where every stage is presented and given a timeline and a budget.

#2 Make Sure That You Meet KYC/AML Requirements

One of the main advantages of cryptocurrencies is anonymity and the fact that you are able to bypass institutions such as banks. However, as cryptocurrencies become more mainstream, they inevitably run into laws of the real world, which cannot be bypassed if you want to run your business legally. While there are some limitations, the pros outweigh the cons. Regardless of where you reside, your cryptocurrency will need to meet at least KYC (Know Your Customer) and AML (Anti-money Laundering) regulations. Knowing where your customers come from, their name, residence, as well as where they are getting their money from is crucial because that’s how you avoid landing yourself and your company into hot water. You don’t want anyone using your coins to fund their illegal activities.

#3 Protect Your ICO

Any new technology which involves money will inevitably attract hackers, and cryptocurrencies are no exception, as mining marketplace NiceHash has experienced by losing over €51 million worth of currency. So how you can protect yourself against these attacks? You will hear different opinions from different security experts, but most of them agree on a few things. First of all, you should not talk about cryptocurrency in public, and that includes all the social media channels. Places like Coinbase, although pretty secure, are still not impenetrable, so you shouldn’t treat them as banks. Get in touch with your cellphone operator and ask them to install every security measure they can think of, and then add a password to it, as well as to attach a “do not port” SIM card to your account, which is a lengthy process.

#4 Gather An Expert Team

ICOs can get pretty complex, and complexity breeds problems sooner or later, which is why you will need to gather a capable team of experts which possess all the technical know-how and expertise in order to implement your cryptocurrency venture, as well as to handle any potential issues. But, apart from their knowledge and skills, they can also help your startup in a different way. You can capitalize on their expertise and reputation in the industry and get potential investors to trust your company. This means putting up their profiles and CVs on your official website so that backers are able to see who will be in charge of their money. Not only does this help establish your business as trustworthy, but it also makes it completely transparent, which is an added bonus. Companies such as Cashila have used this approach and it has worked like a charm.

#5 Come Up With A Pricing Strategy

It is entirely up to you to decide how you are going to price your ICO because it all depends on your plans and goals. However, you can rely on one of 4 most common pricing methods. The first one is where the price has yet to be determined, but where investors receive coins based on the size of their investment. You can also opt for the fixed price coins, and only allow your investors to trade coins after the freezing period. The third method is the Dutch auction, with the first coins being the priciest, but with their price dropping over time. Finally, you can go with price rise ICO, where the most active backers get to purchase coins at the best price.

#6 Provide Statements

You will find very few people willing to invest in something that they can’t see is actually working, which is why you need to prove to them that your product is the real deal. In addition to backing up your claims with your ROI and examples, which means developing your currency to that extent, you should also learn how to present your idea. There is where you have the most room to experiment, because your approach depends on the nature of your coins.

#7 Establish Protection Mechanisms For Your Investors

Without your investors, you wouldn’t be able to get your cryptocurrency venture off the ground at all, which is why it’s important to protect them. How? You can offer discounts for those which have invested early on. You can also set up an escrow wallet and display the names of all key holders. Finally, you can offer to return their funds in case they decide to back out of the campaign if they decide it’s too risky for them.

With these tips in mind, you will be able to start off on the right foot when it comes to your ICO. But, in addition to that, you will be able to attract investors, keep your venture safe, and do business in accordance with the law. Good luck!



Sharing is caring!