Things to Know Before Launching an ICO

by | Aug 17, 2018 | Resources | 0 comments

Things to Know Before Launching an ICO

If you are searching for different Things to Know before Launching an ICO, then I suggest giving a look below various features and instructions that you come across. It certainly fit the user’s requirements rather well, and is pretty quality.

Initial Coin Offerings (ICOs) are massively trending, but there lies uncertainty about how to guarantee that an ICO has the good potential for success. Also can lead organizations down a path they shouldn’t be on. Thus professionally making a measured, educated assessment of a startup’s fitness for the ICO fundraising path, and implementing successful operation post-ICO, are the key steps toward an ICO success story.

Many have used benefits of Initial Public Offering (IPOs) and private equity fundraising in relation to the increasingly familiar ICO route, and find the structure of ICOs attractive for numerous reasons.

It is noted that ICOs offer owners the opportunity to retain 100% of the company’s ownership equity, meaning that much-needed capital doesn’t compromise the startup’s integrity. For ICO fundraising to be successful, an entire token ecosystem and sustainability model should be conceived and implemented before it is taken to market.

Moreover the token has to remain viable as more than mere novelty after the ICO is complete. Making these assurances to investor’s needs startups to invest significant equity to make certain that an ICO is the good course of action.

Questions to Ask Before Launching an ICO

Answering these questions would help a firm determine how they will approach an ICO before, during, and in the aftermath of the token launch.

  • Is this a security or utility token?
  • Do you include U.S. citizens in your ICO or Token Generation Event (TGE)?
  • How is the CEO/company going to spend the money once the ICO concludes?
  • What would be the ongoing revenue stream for the business post-TGE?
  • When is the best time to convert your coin?
  • How volatile is the current market?
  • What tax rate would you pay consider that it is revenue?
  • What are the costs in fiat currency that you need to cover (paying employees, suppliers, etc.)?

What direction do you think the crypto market is going in? If it’s going to drop 90%, you may want to sell all of it. If there is only a small blip, you may want to sell just enough to cover fiat expenses.

Finally consider that the conversion, in the case of utility tokens, is potentially a taxable event, which is a new cost that must be totally considered.

Also Read Altcoin Exchange Software Development Also Read cryptocurrency exchange solutions

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.