Build Your Own ICO on Ethereum
Initial Coin Offerings or ICOs as they are commonly abbreviated are considered to be the most practical and pioneering confluence of modern technology like the blockchain and the traditional world of crowdsourcing investments like a stock market. It has become so mainstream that you can create your ICO on Ethereum or any other blockchain for that matter.
Initially, ICOs, owing to its ease and lucrativeness, started to spring up left, right, and center. For many investment experts, 2017 is considered to be the year of the ICO. The fact that ICOs and the tokens issued by the ICOs were not subject to any regulatory legal framework made it one of the go-to options for enthusiastic crypto entrepreneurs and harbingers.
On the flip side, however, since there was no legal hold on the entire process, ICOs also became hotspots for scams. The image tarnished not only ICOs but also the entire blockchains technology and the space of crypto tokens at large. It took quite some time for the technology and the process to shed this dubious clout and become mainstream again.
Today, the SEC (Securities and Exchanges Commission) and the other regulatory bodies across countries entrusted with upkeeping fairness in economic security have become more aware of the process and have gone in to properly regulate not only ICOs but almost every other process associated with crypto tokens and blockchain.
The first and foremost step taken by the SEC was to observe the token not in terms of its definition but more in terms of its behavior to determine whether or not a token can be considered a security. This changed a lot of things both for ICOs and crypto fund generation processes.
There have been a lot of alternatives that have managed to retain the versatility of blockchain-based fundraising. Security Token Offerings (STOs) and Initial Exchange Offerings (IEOs) can be quoted as good examples. However, none of them have been able to break the supremacy that ICOs have been exerting to this day in the field of crypto fundraising.
Ethereum ICO Development
Bitcoin might be the undisputed leader when it comes to cryptocurrency. However, when it comes to the application of blockchain for various purposes and utilities, it is not the bitcoin blockchain but the Ethereum blockchain that leads the league. That brings us to the million-dollar question: How to start an ICO on Ethereum?
The Ethereum blockchain has been go-to platforms for creating smart contracts. Most of the ICOs have been created on the Ethereum blockchain. Although that is an established process for creating an ICO, there are a few steps that need to be taken without even an iota of compromise. We have outlined below, the details of the process involved in launching an ICO on Ethereum.
Focus on the Idea
It has to be admitted that while setting up an ICO as a process is simple, straightforward, and monotonous, the idea behind your ICO is the selling point. The selling point has to justify the creation of the new crypto token and the founding members of the ICO have to agree on the specifications – which we will address in the later paragraphs. It is this piece of information that will determine some of the most important steps of your ICO like writing your white paper and crafting your marketing campaign.
When starting at ICO, it is important to have certain key details in place. These elements guide you on how to launch an ICO on Ethereum. The elements include the start date, the enter date, the minimum and maximum caps, and the currency in which they are expressed.
To build your ICO on Ethereum might be a process tried and tested, but figuring out the specifics is of crucial importance. Since all the aspects and parameters governing the ICO are written on the immutable digital ledger – the blockchain, it might not be possible to make any changes later.
It might not be an exaggeration to say that the smart contract is the heart and soul of your ICO. It is to be remembered that when you launch an ICO on Ethereum, you are essentially dealing with peoples money, and it has always been considered a delicate affair. Even the most trivial details demand the highest degree of attention.
Questions to Be Asked
Before you approach an ICO development company, you will need to ask yourself a few questions to ensure that your ICO does not have any flaws or lapses in either the legal or operational front.
- Will the tokens be immediately accessible after the transaction or will it be made available to the investors only after the ICO ends?
- Will the ICO be preceded by a closed sale for a special set of people?
- Is there a bonus scheme in place for early buyers of tokens?
- Will the funds that are raised through the ICO be returned to the investors if the goal is not met?
- Will the founders get some portion of the initial talking supply of the ICO?
- Will the funds raised by the ICO be released during some vesting period? Are there any other particular circumstances that will lead to the release of the funds?
- Will the raised funds be stored within the smart contract, or will it be transferred to a different wallet?
- What is the start date and the end date of your ICO?
Technology Used on Ethereum ICO
There are certain technologies that have already been suggested by experts to help launch a simple ICO.
- Solidity can be used as the programming language.
- OpenZepplin Solidity Contracts can be used as the base of the smart contract.
- Truffle framework will act as the testing and building tool.
- You can also consider using simulators like Testrpc to emulate the local Ethereum Blockchain node.
In addition to the technical aspects, you will also need a robust marketing plan, an informational website that updates people and investors about your Ethereum ICO Development, and above everything, a proper customer support team that will address the issues faced by your investors.
ICOs are probably the best examples of how some innovations within an innovation stand the test of time. It still remains one of the most sought after methods for raising funds for crypto projects. The ease of launching an ICO, the absence of the intervention of regulatory bodies like the SEC, the possible expansion of the portfolio of investors, and the global reach make the ICO a great way for binding traditional investments and a new technology like the blockchain. This profitability and lucrativeness might give rise to questions on how to start an Ethereum ICO.
If you have a brilliant idea in the crypto space and if you would like to launch your ICO on Ethereum, all you need to do is get in touch with a blockchain development company that specializes in the development and launching of ICOs. They will take care to understand your business requirement and launch your ICO in the most perfect and profitable way possible.