Tips to Minimize Failure in ICO
ICO, commonly referred to as Initial Coin Offerings is a type of fund-raising or crowd funding…
Tips to Minimize Failure in ICO
ICO, commonly referred to as Initial Coin Offerings is a type of fund-raising or crowd funding which is based on either the fiat currencies or the cryptocurrencies like Bitcoin, Ethereum, and others. the leading startups are investing in coins to the overall product design and are utilizing ICO as a major means of capital raising. This is because the overall concept of ICO is easier and highly convenient and bypasses the time-consuming and rigorous process of getting funds from the banks or venture capitalists. The main benefit of this method is that ICO allows the given the business to focus majorly on other important areas rather than raisin funds from investors or marketing.
Any typical ICO campaign might take more than a week within which the potential investors are given the freedom to buy coins of the company. During the given ICO campaign, the potential investors buy the coins of the company and the given purchase gets executed as some small-term smart contract which is usually equivalent to the acquisition agreement of the shares. In case the given company is not able to raise enough funds, then the desired amount of money is to be returned to the backers.
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Keys to Pay Attention to During an ICO
Here are some basic points that need to be considered while considering any basic ICO process:
• Whitepaper: Try developing a proper whitepaper which is clear and consistent and contains the well-described technical details of the overall product.
• Ensure that the given coin’s incorporation follows into the given product naturally.
• Ensure that the technology used has been chosen correctly and is easy to implement with respect to the overall Blockchain framework that you have selected.
• Ensure that you are in an answerable position to the requests about the allocation & movement of assets which will be stored.
Advisor and Community’s Feedback
• Aim towards receiving proper feedback from the experts usually within the given community before publishing the given white paper.
• Try forming proper advisory boards and bringing people from both the fields of Academia and industry having relevant experience in the field of cryptocurrencies and Blockchain technology.
• Attend proper workshops and conferences like the Blockchain Expo, Consensus, Smart Contract, and others to gain direct access towards the opinions of the experts.
Legal Transparency & Issues
• Try to be highly transparent with the given intentions of your company, stages, milestones, and funds or coin allocation.
• Ensure that the particular legal framework has been fully defined and there is no room for any kind of dispute.
• Use the given funds in an efficient manner and try explaining in a step-by-step manner about how you should be spending them for the overall product development.
• Be transparent and open about the requests of the community.
• Try protecting your investors. Keep the terms of the investors quite clear to ensure the success of the given ICO.
Follow the specific set of guidelines to ensure the success of your ICO.