Friday, 31 May 2019

How to Create & Run an Own ICO Company?

     

          The organization has several ways to raise money. Startups are constrained because traditional institutions are reluctant to invest in new companies that are unproven and with little collateral.  The startup is taking money from the global audience of investors and raising the money of pre-product. So, it makes the investment highly speculative. Established organizations can raise capital through traditional financial services and IPO where they sell shares of the enterprise to investors. But, the new form of raising capital has emerged called an Initial Coin Offering(ICO) by the emergence of blockchain technology and cryptocurrencies. It enables the startup to sell a predetermined number of tokens or a new cryptocurrency. The startup is offering to an investor and the investor purchases with cryptocurrency such as Bitcoin, Ethereum or cash. The investor isn't buying the share of the startup, but instead, it relies on the value of the token or cryptocurrency to increase as it is traded through specific exchanges indefinitely after the sale ends.
        A great opportunity to raise a lot of money is the tokenization of existing businesses and new business ideas. Technically, the tokens being generated in the event of the sale or announcement of the sale. So that's the kind of common way of describing it. Sometimes that can distinguish from an offering a sell of an investment. Tokens build on top of Ethereum blockchain. Technically it is a sale or tokens distributed in a future at a future date. There are many websites supporting the initial offerings and subsequent trading, once the business has been launched. It includes coinschedule, ICO Alertnext.exchange and TokenDesk. One of the benefits is that you'll be able to create early adopter may draw any user base that wouldn't have even known about your product. The investors are basically betting on Team future products and the idea that token as an investment. You not only bet on this will work, but is this a great idea and look at this team to think these guys can pull this off? So, you have to take into consideration of skill sets, track record and the combination of advisors. Technically, all you need is to code a site with a great idea.


Idea & Token: It is important to start with an idea and start a free write, talk about, discuss in detail and think about who would find interest in this idea besides just yourself. Is there a problem and an actual problem? Do 100 people have this actual problem? Do you hear people talking about the problem? It is good to discuss your idea with the people who you know more about your idea space, cryptocurrency space and ICOs then you do it. Once you think, it is valid, and start to find a way to convey in a sketch or images. So, if you get from point A to Point B to C and D quickly with images and sentences that will help a lot to your investor or business person. For that, you must be inspired by your idea to convey it in the sentence and gain interest in where they ask more questions. This inspiration will do something toward the idea to document, add it to your portfolio and go to work.
     Before creating the token, you must have the answers to these questions like,
* Do you need a token?
* Can you convince others that a token offers a strong value proposition for your product or platform and the blockchain help solve the problems such as do you handle records that need immutability?
* Do you need to use code to make decisions and transactions without an intermediary?
* Are you able to sustain the vision using this token?
* Does this product add value to a potential token like trade value or is it something that a merchant or customer wants to hold or add value to the platform.
* Does it create or aid an ecosystem?
     So, you must have the answers to these questions when you tokenize something by giving the rewards using the token or track for rewards and rebates access to the platform, etc.,

Benefits of the Blockchain: In general, Blockchain is the database. The benefits are
 * It provides an immutable track record and immutable profile so that as long as you associated with this profile these things you can trace every step along the way. The history is yours and any ownership changes will be traceable too.
 * Blockchain gives you more security. All the vital and critical moments happening on the app will be written to the blockchain to register data or execute the code(smart contracts) and its state will be visible to anybody because Ethereum is public and permissionless.
* It has human less escrow service by smart contracts and the funds to move on pre-agreed conditions. That will introduce a lot of change in the financial world. Specifically, when you think about an app or platform, the blockchain can be used to transfer data in the background so that it doesn't have the public interface to make every change that needs to happen. So, it allows things to happen based on preexisting agreements without an intermediary. It is the kind of shield that away from that staff.
* Blockchain can be used for value transfer for the in-app activity which you can cash out.
* Any participant will be rewarded for great content (likes, followers, views etc) via the in-app tokenomy mechanism.


Problems & Solutions: It is important to make sure that the problem you solve is very clear. So, you need to talk about the holes in the market or pain points in the users, customers, businesses, and merchants. They should know about your market knowledge, research or your background experience. Discuss prior attempts by solving these problems by others. Then decide on how you are going about to solving this problem. Here, you can insert your detailed solutions of diagrams, paragraphs, words, research, and unique strength.

ICO Landing Page: You should have a central place for everyone to come and learn about your project. So, you must build a website that mainly operates the landing page. You can do the custom development once you get in your projects when you have more data, more investors and the bigger team or you can do it yourself. You may want to have time in the countdown for sale and track how much investment you have. Usually, you have to find easy to download whitepapers and accounts are good so that you can track who is logging in and people can have all the information there. Let's look at the website Plentix, they have the whitepaper, about and easy navigation. When you scroll down, you can see MVP of the first version of product token sale, the team and all the stuff. This is one way to do your project. More importantly, you can sign up and submit questions in the contact page.
     Also, you can search for themes and plugins for your ICO websites. In the ThemeForest, you can search for ICO where you have the options and criteria. If you want to use it as a base and maybe some developers do little work on the back end which is a good start because it covers your design and uses the ICO crypto and ICO trade. And then the quickest way is hiring developers to do the back end stuff to plugged it in. You can buy and link this up at launchpad and have it active where it works with all your links and everything.

Token Structuring, Supply & Price: We want to have a clear definition of what the token is. So, Define its utility as in what can you do with or without the token and how is it like you out or how do you provide you in. What benefit does it provide? Is there a reward that comes from holding a token? Is it a security or an investment? So let's take look at the basicattentiontoken. Here, you have an ecosystem for advertising as an advertiser and a publisher? In the triangularisation, you can see how the token gets used as a reward and describe who gets it. So, it provides more privacy and less fraud.

     You have to think out the following in token supply distribution,
* How many can be created?
* How many can be held by team advisors?
* How many we allocate for sale, pre-sale and private sale?
* How many can be released later?
So, it is important to think all this out and find the strategy that works for you. It is an industry standard to reduce the amount of circulation since you didn't uphold the value during the sale because the demand wasn't high enough. It is also called as burn. Generally, low supply is good and respected investors. But high supply can work with real utility. Let's take the example of solve.care has an allocation of 1000M tokens. 35% goes to presale and sale, 20% goes to the community,18% reserved for the team, 15% for growth and acquisitions, 9% for long term foundation budget and wrap the expenses to 3%. So, this is one kind of token allocation of that company.
    If your token is circulating through an ecosystem, you may want to give it a room to grow with the platform especially if it is not a trading token. Sometimes, fractional is good, because you can use it in many different ways on the platform and you know things get fractional. If there is a limited supply, it is going to be a fractional amount because not many people are going to move a big amount of it. So, think about the target price before the sale, during the sale and after the sale on the exchange. Generally, the security tokens are near to 1 USD and the utility tokens are .20,.30 USD or lower.


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