How to run an ICO in 2018 - 7 basics for your ICO to succeed
The crypto market is still full of potential in the last quarter of 2018. However, the number of initial coin offerings (ICOs) has seen a decline over the past months. Therefore, businesses and individuals considering an ICO need to adjust the approach for holding ICOs. Here are the 7 basic factors to pay attention to when launching an ICO industry insiders identified.
Best practices for crowdfunding via ICO
- Prepare a legit token economy
Whether a project succeeds can be best determined by considering the quality of tokens that are sold during an ICO as well as the quality of the project’s tokenomics. A legit project accounts for various crypto economic metrics which ensure the robustness of the platform, such as having a high fault tolerance.
- Implement KYC/AML procedures
Today’s regulatory environment requires an ICO to have a secure, rapid process for fulfilling know-your-customer and anti money laundering (KYC/AML) procedures. Online exchanges increasingly consider whether a project fulfils KYC requirements before listing it. Likewise, banks and investment funds are more probable to engage with ICO’s when having AML certification.
The dashboard of tokenware.io provides an integrated AI powered KYC/AML verification feature, which allows users to prove their identity fast and effortlessly and fulfil compliance requirements in any location.
- Use the right standardised token
Another characteristic of successful ICOs is the use of ERC20 tokens for fundraising. The ERC20 token is ideal, because funds can be raised on the Ethereum blockchain before transferring the value of the tokens bought onto the projec’s own chain.
Ultimately the token features speed up the transaction process and provide an easy way for web clients to communicate ERC20 transactions with a blockchain. Through tokenware.io you can also offer the project contributors a multi-signature wallet that will give the new members of your community the ability to purchase your tokens without setting up their own wallet.
- The importance of airdrops and bounty campaigns
When it comes to ICO marketing strategies, a main tool is the airdrop, which refers to the distribution of token to large groups of people in order to create awareness. In fact, a well executed airdrop can lead to an increase in the overall value of an ICO. Further it can help a cryptocurrency achieve the network effect needed to obtain its expected value and at the same time keeping the marketing costs low.
A bounty program is another crucial addition to the ICO marketing strategy. It is, in short, the provision of incentives for community members to add value to the project, such as referral programs. Bounty campaigns can further improve the global visibility of an ICO.
- Plan your token metrics
Extremely important is setting the right soft and hard cap for your project. The former refers to the minimum amount of money needed for the project to get off the ground, while the latter refers to the maximum amount required to execute the ICO’s aims.
A soft cap should ideally be 10 % higher than the amount needed for a MVP to account for any unexpected costs. The hard cap is a far more important determinant of an ICO’s success. Analysts view low hard caps as a representation of a team’s commitment to setting achievable goals which makes them promising for investors. While they may vary depending on the ICO project, the intuitive ICO dashboard of tokenware.io has been designed for use by any ICO.
- Build your Community
Unlike most other purposes of raising funds, a successful ICO involves the creation of a community. It consists of users who invested in the development of a particular distributed ledger, dApp or cryptocurrency.
The most important social media platform for ICO marketers is Telegram. It has become the standard platform for ICO teams to communicate project updates to the community and receive feedback.
- Educate your community
ICOs which sufficiently educate their community about their product and cryptocurrency market will ultimately benefit from a loyal base of users in the future. While doing this it is important for ICO teams to inform about the risky nature of cryptocurrency investments.
If you have an idea for a great crypto project and are positive that this is the right time for you to enter the market, it is worthwhile to consider tokenware.io as your ICO service provider with a track record.
tokenware.io is the leading full service ICO provider. The Berlin based company has developed an incredible dashboard which allows you to focus on your product. The dashboard allows ICO teams to plan and execute airdrops, bounty campaigns and provides detailed statistics on token sales and the health of your token economy.
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