how to plan an ico

How To Plan An ICO: Painting The Big Picture

in News/Use Crypto by

How to how to plan an ICO

In the case of cryptocurrency assets, transaction data is stored in the blockchain. The data on each new transaction is recorded in a block that stores the data of the block preceding it, and so on. Thus, a chain of data blocks is created – hence the very name of the technology Blockchain. At the same time, it is almost impossible to make changes to the data already trapped in Blockchain, which makes the technology itself reliable and secure. All blocks are simultaneously stored on multiple computers connected to the blockchain network, that is, data is managed decentralized.

Formulation of the idea

At the initial stage, it is necessary to assess how appropriate the ICO is for the project. In case this is a completely new project that is at the idea stage, you need to decide what role decentralization and the token will play. The most popular attraction of funds for ICO among young technological startups with a global vision.

ICO is suitable for business in any sphere, it is important to develop such a concept of a project and a token that would solve global problems: most often investors come from different parts of the world, the crypto community as a whole is not tied to a specific territory. A token can be anything: a means of payment, a bonus and even alike. In gaming applications, for example, tokens can be earned as bonuses and used for in-game purchases.

how to plan an ico

Team selection

Today, popular blockchain platforms for creating smart contracts are Ethereum, Waves, Nxt, Bitshares, Nem. Ethereum remains the leading platform for the development of smart contracts for ICO, it is this blockchain that has the largest community and, accordingly, the most information in the public domain.

On the blockchain Ethereum, there is a popular KICKICO platform, where you can launch ICO as easily as a regular crowdfunding campaign. It is possible to hold a turnkey ICO on this site for 4% of the funds raised as a reward. Each of the blockchain platforms with the ability to create smart contracts has its own differences in the degree of openness: there are public and private blockchain networks. Creating smart contracts is also available for people with no programming skills: there are smart contract templates in the public domain, which only need to be replaced with a few lines.

The name of the token may or may not coincide with the name of the project. When choosing a name for a new token, care must be taken to ensure that its three-letter abbreviation does not coincide with existing tokens and altcoins. You can check this in the list of tokens on the Coin Market Cap.

how to plan an ico

Stages of fundraising for ICO

As a rule, ICO is carried out in several stages:

  • offer
  • closed sale of tokens (Private Sale)
  • Pre-sale of tokens (Pre-ICO or Pre-Sale)
  • the main sale of tokens (Main Sale)

At the stage of the offer, information about the planned ICO is posted on the forum in the altcoins section. The project team can thus receive feedback from future investors and refine the proposal. During the offer, the deadlines for the implementation of the idea are announced, White Paper is published, the necessary amount is set for this, the team declares Soft Cap, the minimum amount to collect, and the Hard Cap, the maximum that the project can collect.

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.