Home » how are icos created 2

Section 2: How are ICOs created?

Unlike at the earlier initial periods when the concept of ICOs was introduced into the space, the launching an ICO itself was sufficient. But recently as the ICO concept takes shape and matures, the success of an offering in the current cryptocurrency landscape depends largely upon how the company presents its to-ken, builds community trust, and offers value to the investors.

The process starts with pre-announcement of the cryptocurrency project. This is followed by the publica-tion of a white paper or an equivalent project summary, discussing every detail about the project inclusive of its business model, development roadmap, integration of the currency within the project, the team behind it, and how it benefits the community.

Pre-announcement is done on the core community platforms such as Reddit or Bitcoin Talk. The community responds to the project, allowing the project team to implement improvements and upgrade it to generate traction among investors.

Offering comes after the pre-announcement. The project team offers a contract, describing the terms of the transaction, life cycle of the project, target investment amount, and project deadlines. It will also in-clude the financial instrument to be traded, which is usually a digital token in case of cryptocurrency projects. The offer further defines the rules governing token usage and investors’ rights. The project team announces the start and end date of their respective token sales, which can be in multiple stages.

Marketing Campaign or PR Campaign is the key to conducting a successful ICO. The past couple of years have seen a surge in the number of ICOs conducted annually, making marketing a real challenge. There are specialized marketing agencies in the cryptocurrency landscape, helping companies market their product to the target investors.

Once the marketing phase is complete, the actual sale of cryptocurrencies or tokens commences. The two popular sale channels chosen by the companies include currency exchanges or special project sites organized by the investor’s office. A majority of the companies offer an early-bird discount of up to 25%, which in case of multistage offering decreases gradually. According to the current market trend, compa-nies accept payment in the form of other cryptocurrencies, bitcoin or Ethereum, or in some cases, fiat cur-rencies are accepted as well.