The emergence of the concept of fundraising is because many innovative projects fail to hit the market without sufficient funds. And so, fundraising activities will be a win-to-win solution for entrepreneurs or startups to scale up the scope of their business or projects. There are a plethora of crypto projects coming on the way with the passage of time. One of the significant reasons behind this is the craze of cryptocurrencies happening around us across the globe in recent times. 

Are you up with your project and seeking a way to raise capital? Creating the ICO token and launching it on the centralized exchange for grabbing the attention of wider investors for crowdfunding would pave the way. Beforehand, gain insights into ICO development from reading on this blog and partner with a suitable ICO development company to forge ahead.

What Is An Initial Coin Offering And Its Types? - Explained

Let’s initiate this blog by knowing what Initial Coin Offering is about. It is well known by the term ICO. Yes, ICO is an acronym for Initial Coin Offering. This is the most preferred capital-raising activity to be carried out by startups in the blockchain environment in order to raise funds for crypto-related projects. Seemingly, this will be far better than the traditional way of fundraising. 

Well, in the case of creating an ICO token, you will have an option to sell a particular digital asset representing your project on the centralized exchange. When the demand grows, the value of the Initial Coin Offering token will increase accordingly. Henceforth, this will bring tons and tons of benefits to the investors who purchased the coin. 

Let’s now look at the two different types of Initial Coin Offerings (ICOs).

• Public Initial Coin Offering

In accordance with regulatory concerns, Public ICO is not widely preferable compared to a Private ICO. In a Public ICO, literally, anyone or everyone could participate in the fundraising activities.

• Private Initial Coin Offering

In Private Initial Coin Offering (ICO), only a limited number of people or investors will have a chance to participate in the fundraising. Unquestionably, only the approved personalities with a high net-worth and financial institutions could participate.

What Will Be The Functionality Of Initial Coin Offerings (ICOs)?

Hopefully, you are aware of what ICO is and its common types briefly. With this sound knowledge, let’s get deeper into knowing its functionality. Catch a glimpse of it.

• Relevant Materials About Projects

The prime thing of the Initial Coin Offering is making target investors know what your business or project is about. Without such information, there will be no deciding factor for investors. For layman’s understanding, you have to determine who your target audience is and to come up with relevant details regarding the projects.

• Creating Tokens

The very next crucial thing is creating the token representing the project. No more confusions with cryptocurrencies as tokens are modifiable assets that are non-fungible and tradable. These have to be built and operated on a blockchain network. This could be Ethereum (the most common one) or another blockchain network based on requirements.

• Conducting Marketing Campaign

Are creating tokens enough? Absolutely, no. Do you know why? It is because there are a plethora of projects at present as well as new projects are coming on the way and so it is hard to make the project reachable to the right audience group. This is when marketing campaigns play an important role. Consider the following ICO marketing strategies for better outcomes.

➤ Content Marketing
➤ PR Marketing
➤ Social Media Marketing
➤ Display Advertising
➤ Video Marketing
➤ Discord/Telegram Marketing
➤ Influencer Marketing
➤ Email Marketing

• The Initial Coin Offering For Sale

Once the above-mentioned steps are completed, the token is to be available for investors to invest in by launching it on the centralized exchange platform. Investors will buy the token. When the required funds are raised, this considerably signifies that the ICO launch is successful.

Here Are The Steps To Launch The ICO — A Deeper Insight

By this time, you will be aware of the ICO, its types, and its functionality. When you are sure about forging ahead with IDO development, below are the steps that have to be carried out in order to launch the ICO.

• Connect With The ICO Development Company

While starting, it is much requisite to approach the right ICO development company or firm for availing of ICO development services. The developers in the team should have much knowledge about blockchain technology and smart contracts.

• Conceptualizing & Ideating

Remarkably, this will be a step that needs to be given utmost importance. Yes, roadmap creation ensures knowing whether the project will hit the success or not. Upon gathering your requirements, the team will ensure the viability and feasibility of the project. In short, the team of experts will showcase the trajectory of the project.

• Researching & Planning

Now, you have to conduct in-depth research to analyze the demands and requirements of the current market and come up with a business plan. Ensure that your idea perfectly fits the crypto ecosystem. When you are much sure that your project is successful, proceed with the following steps.

• Drafting A White Paper

A white paper is a precisely explained informative document that holds deets of the projects with the ins and outs. The information should be original, simple, crisp, and clear. So that, it will be easy for investors to have a clear understanding of what the project is about. The information must contain the following.

➤ Token details, including a description 
➤ Project’s technical part
➤ Prospects of the token alongside traits and many more

• Landing page or website development

A web page is needed for representing the token. Eventually, you will grab the attention of potential investors. While creating the website, keep in mind that the UI/UX should be appealing/captivating so that investors can easily navigate through the information provided on the page.

• Perform ICO Marketing

Even before the creation of the ICO tokens, promoting the project will work out well. Make sure you have to implement & execute the result-focused ICO marketing tactics. Ensure to make use of popular platforms such as Reddit, Twitter, Discord, Telegram, etc.

• Creating A Token & Smart Contract

Now, it’s time to create the token using ICO development solutions. Beforehand, choose the token sales model. Some popular token sales models include the following. Check out the list.

• Hidden Caps
• Soft And Hard Caps
• Dutch Auction
• Hybrid System
• A Capped model with a fixed rate
• An uncapped model with a fixed rate

The creation of smart contracts has to be given priority as it will lead the way to manage the transaction of tokens and even for managing.

• Wallet Development

A Digital or virtual wallet stores, sends, and receives cryptocurrencies. The crypto wallet with traits of multi-sig and multiple currency support ensures secured as well as safe transactions.

• Listing The Token

After creating the token, smart contract, and wallet, it is the right time to make your token accessible to the investors by listing it on the exchange platform for fundraising.

Final Thoughts

Moving to the conclusion of this blog, if you intend to launch a token for raising funds, avail of ICO development services from a trustworthy company. Pondering how to choose the suitable company for expectations? Check on the portfolios and know their previous works.