The emergence of the concept of fundraising is due to the fact that many innovative projects do not reach the market without sufficient funds. And so, fundraising activities will be a beneficial solution for entrepreneurs or start-ups to expand the scope of their businesses or projects. There are a lot of crypto projects coming up as time goes by. One of the important reasons behind this is the cryptocurrency craze that is all around us all over the world in recent times.

Are you ready with your project and looking for a way to raise capital? Creating the ICO token and launching it on the centralized exchange to catch the attention of broader investors for crowdfunding would pave the way. Beforehand, get information about ICO development to read on this blog and associate with a suitable ICO promoter company to move on.

What is an initial coin offering and its types? — Explained

Let’s start this blog knowing what the Initial Coin Offering is all about. It is well known by the term ICO. Yes, ICO is an acronym for Initial Coin Offering. This is the preferred fundraising activity to be carried out by startups in the blockchain environment to raise funds for crypto-related projects. Apparently, this will be much better than the traditional way of fundraising.

Well, in the case of creating an ICO token, you will have the option to sell a particular digital asset that represents your project on the centralized exchange. When the demand grows, the value of the Initial Coin Offering token will increase accordingly. From now on, this will bring tons and tons of profit to the investors who bought the coin.

Let us now look at the two different types of Initial Coin Offerings (ICOs).

• Initial Public Coin Offering

Based on regulatory concerns, the public ICO is not widely preferable compared to a private ICO. In a public ICO, literally anyone or everyone can participate in the fundraising activities.

• Private Initial Coin Offering

In the Private Initial Coin Offering (ICO), only a limited number of people or investors will have the opportunity to participate in the fundraising. Unquestionably, only approved personalities with high net worth and financial institutions could participate.

What will be the functionality of initial coin offerings (ICOs)?

Hopefully, you briefly know what is ICO and its common types. With this solid knowledge, let’s dive deeper into its functionality. Check it out.

• Relevant project materials

The main thing about the Initial Coin Offering is to let the target investors know what your business or project is about. Without such information, there will be no deciding factor for investors. For the layman’s understanding, you need to determine who your target audience is and present relevant details about the projects.

The next crucial step is to create the token that represents the project. No more confusion with cryptocurrencies as tokens are modifiable assets that are non-fungible and tradable. These must be built and operated on a blockchain network. This could be Ethereum (the most common) or another blockchain network depending on the requirements.

• Realization of marketing campaign

Is it enough to create tokens? Absolutely not. You know why? It’s because there are a plethora of projects out there right now, as well as new projects on the way, so it’s difficult to make the project reach the right audience group. This is when marketing campaigns play an important role. Consider the following ICO marketing strategies for better results.

➤ Content Marketing
➤ PR Marketing
➤ Social Media Marketing
➤ Graphic advertising
➤ Video marketing
➤ Discord/Telegram Marketing
➤ Influencer Marketing
➤ Email Marketing

• The initial offer of coins for sale

Once the steps mentioned above are completed, the token will be available for investors to invest by launching it on the centralized exchange platform. Investors will buy the token. When the required funds are raised, this considerably means that the ICO launch is successful.

Here are the steps to launch the ICO: a deeper insight

At this time, you will be aware of the ICO, its types and its functionality. When you are sure to go ahead with the development of IDO, below are the steps that need to be carried out to launch the ICO.

• Connect with ICO development company

When starting, it is very necessary to approach the right ICO promoter company or company to avail ICO development services. The developers in the team must have a lot of knowledge about blockchain technology and smart contracts.

• Conceptualization and Ideation

Surprisingly, this will be a step that should be given the utmost importance. Yes, the creation of the roadmap guarantees to know if the project will be successful or not. By collecting your requirements, the team will ensure the viability and feasibility of the project. In short, the team of experts will show the trajectory of the project.

Now, you need to do some deep research to analyze the demands and requirements of the current market and come up with a business plan. Make sure your idea is a perfect fit for the crypto ecosystem. When you are completely sure that your project is successful, continue with the following steps.

A white paper is a precisely explained informative document that contains details of the projects with the ins and outs. The information must be original, simple, sharp and clear. Thus, it will be easy for investors to have a clear idea of ​​what the project is about. The information must contain the following.

➤ Token details, including a description
➤ Technical part of the project
➤ Token insights along with traits and many more

• Landing page or website development

A web page is needed to render the token. Eventually, it will catch the attention of potential investors. When creating the website, keep in mind that the UI/UX should be attractive/captivating so that investors can easily navigate through the information provided on the page.

Even before the creation of the ICO tokens, the promotion of the project will work well. Make sure you implement and execute the results-focused ICO marketing tactics. Make sure you use popular platforms like Reddit, Twitter, Discord, Telegram, etc.

• Create a token and a smart contract

Now it’s time to create the token using ICO development solutions. In advance, choose the token sale model. Some popular token sales models include the following. Check the list.

• hidden caps
• Soft and hard covers
• dutch auction
• hybrid system
• A capped model with a fixed rate
• An uncapped model with a fixed rate

Priority should be given to the creation of smart contracts, as it will lead the way to manage the transaction of tokens and even to manage.

A digital or virtual wallet stores, sends and receives cryptocurrencies. The crypto wallet with multi-signature and multi-currency support features ensures safe and secure transactions.

After creating the token, smart contract and wallet, it is the right time for investors to access their token by listing it on the exchange platform for fundraising.

final thoughts

Coming to the conclusion of this blog, if you intend to launch a token to raise funds, take advantage of ICO development services from a reputable company. Reflecting on how to choose the right company for the expectations? Check the portfolios and know their previous works.