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Initial Coin Offering (ICO) is one of the popular methods by which cryptocurrency systems raise funds. New digital tokens or coins will be created, which will be traded on the cryptocurrency exchange. It is quite similar to an Initial Public Offering (IPO), except for the fact that investors will not hold any stake in the company. Some of the benefits of ICO are decentralized decision making for investors, no direct tax payment by the company, fewer regulations for exchanges, and the ability to buy coins at a discount. However, the ICO’s valuation will be determined by demand and supply factors.

In this blog, we will look at the key factors to consider before choosing the ICO development company.

Marketing Competence

With a huge increase in the number of companies offering ICO services, different strategies will be used to promote their services to the crypto community. A firm’s resources and skills will be put to the test in their marketing campaigns. Each project requires a different approach, and companies have to take the brand to the minds of the target audience. Companies offering advertising services should be ignored as the effectiveness of token sale advertisements has dipped.

Social Media Promotion

A dedicated team should be formed for managing social media accounts for the ICO company. A strategy must be developed for promoting the usage of tokens among social media users. Separate plans must be developed to grab the attention of customers in each network, such as Facebook, Instagram, Reddit, Medium, and other applications. In addition to social media apps, interaction through forums such as BitcoinTalk should also be promoted. Establishing bounty programs that offer attractive rewards for finding bugs and vulnerabilities can prove to be another advantage. The role of marketing is critical as the user’s interest level keeps wavering due to the emergence of new cryptocurrencies.

Audit Management

As business activities grow in size and scale, companies planning to launch their own ICO must abide by local rules and regulations. Countries such as China have restricted crypto trading, sale, and distribution of ICO tokens due to the risk involved. Companies that outsource these bookkeeping services to ICO development providers would be benefitted as they can focus more on their core operations. 

Information About Earlier ICO Projects 

Since a lot of money is involved in ICO, it is better to know a firm’s prior industry experience in dealing with ICO projects and the clients they have dealt with. Successful token launches must be given more importance. Additional information can be sought by seeking the opinion of global forums about ICO. A firm that has several cryptocurrencies listed would prove to be a better option than choosing a firm with fewer listed tokens. 

Local Outreach

ICO providers must develop goodwill in the local areas and regions they operate. Transactions and contacts with local publications and journals are a must for generating some buzz around the ICO offering. The rapid change in market conditions and cryptocurrency prices must be taken into consideration. 

Private Sale of Tokens

Before opting for a full-fledged public sale of tokens, companies can go for a private sale to select groups of investors by establishing proper infrastructure to sense the initial response. Accordingly, promotional offers, referral programs, and bonuses can be modified based on the interest level. This requires changes to be made in the token’s terms and conditions. Automatic sales can be used to save resources.

Whitepaper Presentation

A clear-cut whitepaper is needed for every organization before going for ICO launch services. It is like a professional summary of what a business intends to do. Information about tokens, coins, stages of the project, modules used in the platform, business model, future prospects should be displayed transparently in a detailed manner. 

Quality of Developers

The company offering ICO development services must have qualified and experienced blockchain developers. Their strength in developing smart contracts and cryptocurrency wallets should be closely analyzed, as payments will occur through these mechanisms only. Importance must be given to Know your Customer (KYC) and Anti-Money laundering (AML) to prevent frauds and scams.

Related: How To Start An ICO And Build Your Own CryptoCoin

Conclusion

As the interest levels for using ICO for fund-raising grow, issues such as marketing, compliance with local laws, social media management, and white paper preparation must be clearly contemplated by companies. As business firms rely on ICO as a viable option to improve their position in the competitive market, the above factors must be taken into account before selecting the right ICO development company.


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