Starting a business always requires an initial investment. Many people with excellent business ideas struggle to implement them because they lack the necessary capital to finance and launch their businesses. This is why ICO solutions have been gaining more and more popular among startups. ICO solutions are an excellent way to gain the large capital needed for the initial investment to start a business through crowdsourcing. This article will explain what ICO solutions are, how ICO solutions work, and how to implement them.
What Are ICO Solutions?
ICO stands for Initial Coin Offering, and it is a modern way of raising capital by startups based on blockchain technology. In other words, ICO solutions are a crowdfunding method that consists of collecting the amount of money needed to start a business in cryptocurrency. This method is often used by startups that do not have enough capital to start their business. To raise funds for the initial investment needed to launch their business idea, the business founders need to present a business plan, which in ICO solutions is called a “white paper.” The white paper is a document that describes the specific activities that the business will carry out over a specific period of time. The main advantage of using ICO solutions is the potential to gather substantial investment capital in a short span of time, without the need to go through complicated procedures.
How Do ICO Solutions Work?
The idea behind ICO solutions is quite simple to understand. Suppose that someone has an idea for a business but does not have enough capital for the investment needed to implement it. Therefore, the business founder chooses to create an ICO and issue tokens. These tokens are simply digital coins that represent a specific value and perform many different functions, such as interacting with the user or granting ownership. The ICO tokens are usually sold in stabilized cryptocurrencies, such as Bitcoin or Ethereum.
The startup then launches a public fundraiser. Investors interested in their business idea purchase the tokens issued by them. The tokens allow the investors to participate in the project or take advantage of some product or service offered by the company once the business launches. After selling the tokens, the company has the capital needed to launch its business. Thanks to ICO solutions, startups can raise even millions of dollars for their initial capital. The key to a successful ICO is a well-thought-out marketing campaign that packages the business idea in a very enticing way in order to attract more investors willing to purchase the ICO tokens.
However, many ICOs are reported to be frauds, and after raising funds, the companies don’t even launch. This is why more and more investors are looking to verify the value of the ICO in more transparent and technical project details.
How Does ICO Solution Implementation Look Like?
So, how do you implement ICO solutions? Launching an ICO is a complex process. However, it can be summarized in three major steps.
1. Publication of a white paper
A white paper is a document describing the business idea in detail. In the white paper, the business founders include information about the business activities they plan on running, technical data, and other essential details for the project. The white paper aims to show potential investors what the business idea is about and give them enough details to convince them to invest in the tokens issued for the project.
2. ICO project registration
Registering your ICO project on a carefully chosen ICO platform is an excellent way to find investors all around the world to invest in your business idea. There are many popular ICO platforms where you can launch your ICO. Choosing the best one will depend on the localization of your ICO and the existing regulations regarding ICOs in your country. A few examples of popular ICO platforms are ICO Bench, Coin Gecko, Coin Factory, ICO Hunter, and CoinLaunch.
3. Issuing of your ICO tokens
The biggest challenge of launching a successful ICO is creating the tokens. Then, investors interested in the business project purchase these tokens at a price set by the ICO creators in exchange for certain benefits such as participation in the project or access to the products or services.
Since crypto tokens are based on blockchain technology, you can develop your own blockchain to create your tokens. However, this is the least effective method of creating your own ICO tokens as it is very complex and requires a higher investment of time and money. Another solution is to create your tokens from an already existing blockchain, such as Bitcoin or Ethereum. To create your tokens, you can use existing token creation platforms. This is the easiest option to create your own cryptocurrency, as it only requires a little personalization of the already existing cryptocurrency. Other most useful ICO solutions to create your own tokens are NEO, Waves, or NXT blockchain technologies.
4. Marketing your ICO
When you have finished launching your ICO, the next step is to market it to the right people. By creating awareness around your ICO through different platforms where you can find cryptocurrency traders and investors, you will be able to drive attention towards your business idea and sell your tokens.
Why Nexinter Is The Best Choice For Your ICO?
Choosing the right ICO platform to launch your ICO and create your tokens is vital. If you plan on launching your ICO, Nexinter is the right place for you! Nexinter is our digital trading platform that offers an ecosystem of fully regulated ICO solutions. Our Nexinter platform focuses on providing new-age companies create their own crypto ecosystems and crypto tokens. With the help of Nexinter, you’ll be able to develop fully regulated and automated ICO solutions. The goal of Nexinter is to provide traders and investors with a safe environment and security compliance for their investments on the platform. Click here to find out how our turnkey ICO solutions can help you or contact us for more information.