Of course, these users believe in your project, and what you’re doing, so you may want to compensate accordingly, whatever that looks like for your company. Investors and community members have a vested interest in the success of your ICO. So when they bring security concerns to your attention, it’s wise to listen to them. Plus, showing you’re listening will increase trust and show that you want to expose issues before they become more significant problems. Hiring a lawyer who practices primarily in crypto and understands ICO regulations is a great way to manage this piece of your ICO. It will not be cheap, but it will be much cheaper than the fines levied against your company by the SEC or IRS.
Before we delve deeper into how to launch your own fundraising campaign, let us first take a look at how they are different from each other. CoinFactory’s whitelabel DAO platform provides a feature rich trader dashboard packed with all the essential features in a seamless UI. You can read our article on preparing your ICO whitepaper to get a better idea of how to go about this step.
Why deploy your Crypto exchange with CoinFactory?
In the final section, we’ll explore the fundamentals of token economy design for your blockchain project. Keeping in mind all the security concerns of ICOs, the market entrance of security tokens was highly anticipated. While the term STO (security token offering) has only been around for 2-3 years, the idea of regulated tokens has been in the making for a while. Without having to change the ico and sto launch platform structure and the process of the deal, companies wanted to ensure that transactions are regulated and secure. In 2017, ICOs were a more appealing investment tool than real estate for a large number of investors and even some bonds funds. The first ICOs were held by Omni Layer (formally Mastercoin) in 2013 and Ethereum in 2014, both ended successfully, and became a good example to follow.
Looking further into the future, quarterly roadmap updates will be sufficient. If you can add past victories and achievements to your timeline, then go for it! The fact is that every investor wants to make money on your project, and they use this section to estimate how much money they can earn and when.
What are the benefits of an IDO launchpad?
It can help a business increase sales, improve customer experience, automate work processes, provide predictive analysis etc. From conversational tools to driverless cars, distributed ledger technology in various shapes and forms are straightaway transforming a wide range of industries. Know how distributed ledger technology implements collaborative strategies for industry-wide business transformations. Smart ledgers influences the way business transactions are done at real time. Accordingly, decentralized technology delivers better reliability & credibility between business partners & customers. As a result, blockchains are considered as hyperledger fabrics for transactions carried out across international borders.
- Even though initially the investments were made via cryptocurrencies such as Bitcoin and Ethereum, the ICO processes evolved and started accepting fiat currencies as well.
- So far we have successfully offered 50+ crypto-token crowdfunding projects to our international clients across the globe.
- Nevertheless, it is the best method to raise capital and equip yourself to conduct a bigger ICO event.
- Instead of utility tokens, STOs offer more use cases — they can be cashed out as equity points, property trust funds, bonds, and stock.
This has proven to be effective for blockchain startups and even has bigger promises for already operational companies. This would equip them with sufficient funds and expertise to run an actual ICO on a bigger scale. Tokens or coins are offered at rates that are lower than the actual ICO offer price. This is a potential disadvantage because investors who buy tokens during the Pre-ICO may sell the coins when the actual ICO starts with a better price offering. Nevertheless, it is the best method to raise capital and equip yourself to conduct a bigger ICO event.
What happens after launching an ICO, IEO, or STO
This way, you’ll be able to get the most out of these relationships. Similar to the team profiles, you should definitely add advisors to your landing page and the Whitepaper, especially if the team doesn’t have much experience. Usually, you can find advisors on blockchain-related conferences and events, through your network, and even on LinkedIn. Present the project and your traction to get their attention and discuss the possible ways of cooperation. To boost the credibility of your project, show the core team members on the project website and in the Whitepaper. And don’t forget to include the links to their personal profiles on LinkedIn or Twitter.
That means you need to know your investors and target audience, have a solid understanding of your market, and know exactly what you plan to give in exchange for an investment. Every project wants a successful ICO, which is why it’s essential to spread the word through various channels. For example, a project serious about creating an ICO might enlist the help of an ICO marketing agency to develop a strategy designed to capture the project’s target audience. You might have an amazing idea or product, but are struggling with finding a development company that will help you fund your project.
What to do After the ICO
The law also prohibits fraud and manipulation in the process of issuing and selling security tokens. The very nature of smart contracts requires a company to close all vulnerabilities before launching a token sale, or else it will be too late. Hackers also can attack through vulnerabilities in applications – in addition to smart contracts, any ICO uses a lot of other programs and applications in one way or another. For example, an insufficiently secured website through which investors buy tokens can lead to terrible consequences, even if the code of the smart contract itself has been seriously audited. No system is completely invulnerable, but at least try to reduce the likelihood of a successful ICO attack. First of all, the startup should invite experts to conduct an information security audit and set up continuous monitoring of the infrastructure.
Asset-backed crypto tokens will give your blockchain project a distinct outlook. With these asset-backed tokens, you can present your proposal to a huge number of the targeted audience quickly and easily. Our premium STO investor dashboard comes with an attractive administration panel that enables one to make and deal with your smart contracts. Thus, there is no compelling reason to employ an additional ability since this activity can be effectively done utilizing the STO dashboard even by a non-proficient.
Need help to stage your project in ICO ?
Restricted tokens have certain limitations regarding secondary trading such as lock-up periods and limits on investor counts in different jurisdictions. The respective decision for the same will take place during the planning stage. This is the most important aspect of your white-label launchpad, depending on which the rest of the features will follow. Thus, prioritize this as the first step in the ideation phase and select a suitable white-label template for the same. Since crypto launchpads are still evolving, it is better to consult with a launchpad development company that can give you expert opinions and suggestions. This list will help you stay on top of all the Blockchain startups that will be launching soon.
Such actions by unscrupulous traders are another risk when organizing token sales. One of them is to limit the issuance of paid tokens until the end of the ICO. A company can confirm a transaction with an investor with a special code in a personal account or by other means, but not to accrue tokens until the end of the offering. In this way, the probability of an instant secondary market with its manipulation is reduced to zero. In addition, it makes sense to break token issuance into several stages and create incentives to keep them within the project, rather than quickly sell them. Essentially, it is to provide tokens to a large group of investors.
If you require any help during the process
At each stage, all of them encountered certain difficulties in managing. In other words, at first it was a problem to find qualified candidates. Fortunately, you can find the right candidates from other countries on the IT market, including those with experience in building cryptocurrencies.