So, you want to launch an ICO? Chances are you’ve read about the organizations, like Storj, that have found great success through this fundraising strategy. It is true that ICOs give entrepreneurs the chance to raise funds even before their product is built, thus lifting at least one barrier to market entry for many hopeful startup leaders.
But launching a successful ICO is not as simple as some people make it out to be. In fact, it takes months of tweaking, developing, and marketing to even give your organization a chance at meeting your fundraising goals. The good news is, there are a few tried and true practices you can adopt to ensure your listing is on the right track from the onset.
Determine whether ICOs are the best routes for your business:
ICOs are trendy but they are not for everyone. If there is another crypto solution on the market doing exactly what you want to do, chances are investors will be hard to convince. Additionally, if you don’t necessarily need a coin or token to make your technology work, it may not be worth it.
Find the right team – Finding the right team is, arguably, the most important step in the whole process. Without the right team in place, it will be next to impossible to fully realize your dream of bringing your decentralized solution to life. You need to hire a diverse group of individuals, whose backgrounds and skill sets complement one another. For example, four developers and no growth marketing experts will leave your team lopsided.
Write a strong white paper – Without a tangible product, you will likely be judged on the quality of your whitepaper. Your whitepaper must communicate who you are, what your vision is, where the void is in the market, how you will develop your technology, what your token utility is, and how you will grow your organization after raising your funds. There have been several cases of white paper plagiarism that have derailed organizations, so take extra caution to ensure your whitepaper is thorough and original.
Get advisors – In addition to acting as a public stamp of approval, advisors can also guide you through the daunting ICO process. If you are able to forge a relationship with an experienced advisor, he or she can help you refine your vision and product description, plan out a detailed roadmap, and spark community growth initiatives.
Build your community – If you want to grow awareness for your ICO, you have to turn to your community. Crypto enthusiasts contribute to social and digital forums all day long, and it is here that the fate of an ICO can be decided. If no one on these forums is talking about your ICO, it’s a bad sign. But no one can talk about it if they don’t know about it. Carrying out community management across social platforms is a great way to build early community relationships.
Social Media Forums (Warrior Forum)
Create a website – This may sound obvious but, yet, your project needs its own website. It’s almost second nature to Google the website of a brand after first hearing about them. Many investors may turn to your website before even ICO Reviews.
Launch a Bounty Program – Not every organization listing an ICO chooses to offer bounties, but these initiatives can do wonders for sparking awareness. A bounty program is a rewards-based system that is used to incentivize people to contribute to the development and marketing of an ICO in exchange for cryptocurrency. If your team is small and you don’t have the resources to hire external agencies, running bounties is a great way to gain extra marketing and community management support.
Make Sure You Meet the Know Your Customer Standards – Yes, regulation across ICOs is an ongoing discussion. But the SEC has made it clear that ICOs in American must meet the Know Your Customer standards, and if an ICO does not, the SEC will prosecute. Obtaining legal counsel before launching is never a bad idea and may put any lingering legality fears to rest.
There’s no formula to ICO success. Some organizations do everything right, and still come up short. While there are no guarantees, it is still a good idea to check off these basic first steps before publicly launching into an ICO pre-sale mode.