Once you’re set on getting in on a new ICO, you need to know what types of Initial Coin Offerings exist. Currently, there are two options.
Private ICOs
Simple as it sounds, a Private Initial Coin Offering means that you engage a limited number of investors to raise capital. You can also choose cayman islands phone number data the amount of minimum investment required to join your ICO.
Public ICOs
Another form of ICO is Public Initial Coin Offering, similar to IPO. It can be referred to as crowdfunding aiming to draw institutional investors and the general public. However, private ICOs are way more practical than public because of regulatory considerations.
How Does an ICO Work?
The key principle of ICO work is to raise capital by leveraging blockchain technology to issue and distribute tokens. It involves financial input from investors who get the project’s crypto coins in return. Obviously, their interests should be aligned with the whole ICO strategy.
When you’ve set up an Initial Coin Offering, tokens can be traded in exchange for other cryptocurrencies like bitcoin or fiat money like US dollars or euros.
How to Create a Successful ICO
The public investing in ICOs is getting more swisscom delays optical fibre: comco’s 18 million slap sophisticated and expects more from new market entrants. So, putting together a thought-out ICO strategy is becoming crucial. Here are the main steps to launch a successful ICO and reap the advantages of your initial coin offering.
1. Do I Need an ICO?
The first thing you need to decide is whether you need an ICO at all. Yes, you can potentially get funded over the course of two to three months, or days if you are lucky, with an ICO. But the blockchain industry pundits stress that your token should blend with a product you are developing and potentially bring value to the underlying platform — the blockchain.
Otherwise, if pegged as yet another virtual currency, your token is likely to raise little interest with investors joining a long list of other 10,303 cryptocurrencies.
Solving a unique problem and adding value to the blockchain community is essential for your ICO to succeed. For that reason, some ICO projects bz lists choose to focus on specific purposes, like building apps for the realities of Web 3.0 or zeroing in on an industry like finance and developing a token for trading.