ICOs (Initial Coin Offering) have gained tremendous traction in today’s world of digital currency. Built upon the security, trust and transparency of the Blockchain paradigm, ICOs have helped companies raise 7 billion USD as of May 1, 2018. This is a rise from 5 billion USD in 2017.These facts, coupled with the recent favorable economic climate, indicate that this the optimal time to capitalize upon the rising tide of cryptocurrency.
Read on to discover how and why you should raise maximum funds with this innovative business model.
Why ICO?
ICOs merge the power of crowdfunding with the allure of cryptocurrency.
In an ICO, internet users view your value proposition and invest in your vision by buying tokens. Note that this happens before the actual token-based marketplace is released to the world. The next step is a full exchange in which the issued tokens can be traded for other currencies. This structure motivates the public to participate in the ICO and own as many tokens as possible to gain on future enrollment into cryptocurrency exchanges. Because Blockchain technology underlies ICOs, users can be assured of security, transparency, and trust.
Building an ICO Platform
Nitor Infotech’s ICO platform follows certain best practices to ensure that your ICO is a success. First, all necessary ICO information is presented on an intuitive website. This includes token information, ICO duration, the beneficiary wallet address, and interfaces to popular cryptocurrency wallets. After this critical step, it is advisable to ask white-listed users to register and share their information so you are sure that every payment is legitimate.
During the ICO, it is useful to display the token status. This is usually shown as Total Tokens Sold vs. Total Tokens Allocated (known as a hard cap). It is also a good idea to have a token calculator, which shows the relationship between one token and a cryptocurrency such as Ether, Bitcoin etc. You will also need to display a transaction history. This is a list or record of transactions showing wallet addresses, amount invested, transaction costs and transaction signatures. This also helps in maintaining accurate records.
If issues arise, architectural modularity helps quickly identify and fix problems so that token sale can progress. An AML (Anti-Money Laundering) feature ensures that if, based on data analysis, you see an issue with a particular transaction post-payment, you can reclaim the issued token. Finally, remember that it is important to market your ICO. A strong integrated email notification engine automatically feeds ICO highlights to subscribed users. This has the potential to be used as a powerful marketing tool.
Ethereum-based Engineering Guidelines
Some helpful guidelines for Ethereum-based engineering include:
- Choose Modular HTML5 frameworks for front-end development as you may be looking to integrate an existing website instead of developing from scratch.
- Leverage the Truffle framework. This is useful for the creation of Smart Contracts.
- Follow the best practices in writing solidity files.
- Use a sandbox/test network such as Ropsten for integrated tests.
- Ensure 100% code coverage for all development.
- Modularize Smart Contracts for maintainability.
- Ensure that a third-party auditor, instead of the developers involved in writing code, conducts the security audit of Smart Contracts.
- Deploy your Smart Contracts to the Ethereum public network.
Nitor Infotech implements all these and more so that you can hold a profitable ICO.
Key Considerations
Before running your ICO, decide on a minimum funding goal (known as a soft cap). Complete the requisite research beforehand to understand what this number should be. Next, remember to avoid issuing tokens before the sale ends. This is important as record keeping becomes easier. Issue tokens only after the minimum funding goal is achieved and the token sale officially ends. If the minimum funding goal is not achieved, however, it is best to refund the money and modify your approach. With the guidance of Nitor Infotech’s dedicated experts, you can avail the benefits of a secure sandbox ICO platform to pre-test token sales.
Nitor Infotech’s services can help you at every stage of the ICO process. Nitor Infotech can get to the heart of the complicated code of Smart Contracts, leaving you free to strategize and innovate. We also help you drive innovation with 70% of ICO contract features already in place. With our knowledgeable teams, you can set the stage with your ICO website within two short weeks.
ICOs are one of the most useful, secure, and transparent tools for fundraising today. Nitor Infotech can help you leverage the brilliant power of Blockchain technology with the application of the aforementioned tips. With our experts, you can craft a brilliant strategy to generate the funding that your revolutionary product deserves.
Harness the full potential of blockchain technology to achieve optimal solutions for your needs.
Reach out to us to learn more about how you can benefit from our world-leading Blockchain arsenal to raise funds for your venture.
