Industry analysts believe that initial coin offering (ICO) will turn into a multi-trillion dollar space soon. ICOs are a form of cryptocurrency that businesses use to raise capital. Investors get a unique cryptocurrency token by exchanging the monetary investments. It is equivalent to an initial public offering (IPO). ICOs are used for fundraising by startups and a lot of small and large enterprises to offer services and products. As they are similar to stocks, they can help you yield the maximum returns.
If you wish to participate in ICO, you will have to buy a digital currency, and learn how to use cryptocurrency wallets and exchanges. When an ICO takes place, a huge group of investors buy the coins. ICOs can be created and distributed using a blockchain. ICOs have been the center of attraction for the cryptocurrency and blockchain industry.
How do ICOs work?
Initial coin offerings (ICO) are started by a new or established company in the market with an aim to raise the capital. Some agencies turn into venture capital, angel investors, and stock market IPOs to raise the funds. When a business starts ICOs, it sells coins for dollars. ICOs are often considered to be similar to other securities.
Different types of Initial Coin Offerings (ICO)
ICOs can take place as public or private events. With private ICOs, the company can have a greater control over who invests money. Anyone can purchase public ICOs through a cryptocurrency exchange.
Are you wondering how to get started with ICO? Well, you need to create a whitepaper to outline the project, money required, what kind of money would be accepted, and how long will the ICO run for.
During an ICO campaign, the supporters and enthusiasts of the project purchase some tokens with digital currency. If the money raised does not meet the expectations, they money may be returned.
We have listed some major steps required to be followed when starting your own IPO:
As discussed above, you would need to decide the roadmap, set the date, and create the rules for the sale of tokens.
Step-by-step guide to start your own ICO:
- Release whitepaper to outline your project
- Roadmap with long and short-term goals
- Market research on other ICOs
- Website or mobile app
- Social media marketing
- A marketing plan
You can hire a dedicated team to take care of everything so that you can focus on your core expertise. You need to look for the best ICO development company to help you transform your business goals into a reality. AIS Technolabs has huge expertise in ICO development services for our clients across the globe.
Advantages and disadvantages of ICOs
Like every other cryptocurrency, ICOs have their pros and cons. One of the major advantages of ICO development services is that they provide higher profits. One can purchase ICOs at discounted prices, and save a lot of money. Another advantage of ICOs is that it is an efficient way to raise funds. Most of the startups that need the best methods to raise funds and grow their business often look for ICO development solutions to help them. Being easily accessible to all the people, ICOs can provide a greater return on investment to startups.
Let’s talk about the disadvantages of ICOs. As the cryptocurrency projects are volatile, there may be some token losses. Lack of regulation may result in scams also. It is important to get adequate knowledge of crypto wallets before investing in ICOs. If you are new to ICOs, you can seek professional help and advice so that you do not get fooled by the scams.
Investors often look for ICOs and they should familiarize themselves with the cryptocurrency space before making a decision of buying them. They can also purchase tokens with pre-existing cryptocurrencies. It is important to keep an eye on the latest market trends when it comes to investing in ICO. Compare different options and make the right choice. Always check the legal guarantees before buying the tokens. Poorly informed investors can fall prey to frauds and scams also.
ICOs are a mix of IPO and online crowdfunding, but usually meant for cryptocurrency. There is no doubt that ICOs are a popular way to raise funds faster, and some of the examples are Ethereum, Tezas, Dragon Coins, Cardano, and more.
How can AIS Technolabs help you?
If you are looking for alternative sources of capital, we can help you get the best solutions. Being a leading ICO software development company, we have worked with a lot of businesses and helped them gain the maximum return on investment. Right from ideation to successful launch of ICO, we stay connected with the clients, and help them.
We have worked with a lot of startups and successfully launched initial coin offerings for them. The experienced developers build several new coins/tokens to help the clients step into the blockchain industry. We provide secure and custom ICO development services to our clients. We can also help you with token sale management and ICO business logic guidance so that you can decide what type of tokens you should create and make sure that your cryptocurrency becomes a hit.
All you need to do is explain to us your requirements and we would suggest the best possible ways to make your business succeed. We deliver successful results for ICO token development services.