What is ICO and what are the steps needed to take part in it? BitWings Follow Mar 24, 2019 · 3 min read

Initial Coin Offerings or ICOs has been a popular topic across all social channels and media in recent times.

Nevertheless have you wondered what are they? From where did they suddenly emerge from? And who are the chief investors behind them?

This ICO has been in practice for quite a while now. It is often described as being an occasion where local ventures or start-up businesses present various investors with units of cryptocurrency tokens in order to obtain funds. Nonetheless, ICOs are in fact used to RAISE FUNDS for the expansion of cryptocurrency or projects that are based primarily on blockchain-technology.

To facilitate this, tokens are released that are then incorporated into the project.

ICO mainly comprises of THREE vital stages. What are they?

Stage ONE: Analyzing the whitepaper and preparing the roadmap

For almost all businesses and start-ups today, it is vital to evaluate crypto currency tokens or blockchain technology needs for their projects in order to compete effectively in the global economic market. They should also be highly conscious of the fact that the deployment of DApps (Decentralized Applications) is much more high-priced than the centralized apps.

Stage TWO: Planning and development of tokens as well as a token structure

Hands down, this phase is the MOST IMPORTANT OF ALL the three phases. This is due to the fact that , this phases deals with the security and preventative measures against hackers, varied designs of the token structure, multiple token offerings, and critical communication strategies.

Also, here businesses and start-ups will be required to CATEGORIZE the amount of fund they hope to raise as well as the results they intend to accomplish at the end. Not-to-forget, when it comes to the planning phase of a primary coin offering, one of the major concerns is the prerequisites of the business.

Stage THREE: Solidifying paperwork and launching the token

Without a doubt, the launching phase solely consists of the execution of the ICO project as a whole. Here, all the phases of the ICO drive are executed one by one based on the pre-plans of the project.

It is in this stage that investors are required to be properly distinguished by running them through watch-lists to ensure they abide to the two laws, naming, Anti-Money Laundering (AML) and Know Your Customer (KYC), and are not correlated with any criminal intentions or corruption.

Just for a brief follow up, here are10 quick tips for launching an ICO:

1. Design an Informative White Paper

2. Decide on the Purpose of the Token

3. Strictly Legalise the Terms and Conditions

4. Build a Great Proactive Team Together

5. Plan on what Token Technology the team intends to use

6. Finalise the Execution plan and draw it

7. Identify the Token and Crowd Sale Smart Contracts

8. Arrange the essential Hardware Setup

9. Prepare the Website for launch

10. BUT DON’T FORGET, Market Early and Market Right

Furthermore, ICOS are rather simplifying initial investments today. This in turn has permitted a HUGE POOL of investors to participate in the global crypto currency market. Nonetheless, the token offerings tend to swing the ultimate power and massive control to the blockchain rather than a few significant investors.

This strategy has been also introduced by the next start-up in town, Bitwings. By hosting PRIVATE SELLING SERVICE, they encourage to diversify the cap table so that investors can rather focus on building PRIVATE TOKEN VALUE rather than settle large objectives as a whole.

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