Initial Coin Offerings (ICO)
ICO's are fast becoming a major source of investment in new and existing projects with over $1.2 trillion raised in 2017 and so far in 2018 over $850 million was raised by a single project (Telegram).
ICO's provide an almost frictionless method of raising funds from an active consumer market that keeps growing year-on-year. By creating a Smart Contract, you provide a payment address for anyone to send their Ether* to in exchange for your crypto-coins/tokens.
In its simplest form, all that is required to launch an ICO is a one-page website detailing all the information of the company/project, a white-paper, and a simple Smart Contract. An example ICO page we have created is YieldCoin.io.
However, not all ICO requirements are so simple and they depend of the aims of the project or business model. Other complexities to consider are:
- Know Your Customer (KYC) - To conform to certain regulations, it may be important that you vet the potential participants of your ICO. Therefore a web-system must be created that allows for comprehensive user registrations with certain in-built rules for defining participation approvals.
- Currency types - Typically an ICO would only cater for Ether, however this by itself can be too restrictive and prevent non-technical participants from taking part in the ICO. With the YieldCoin ICO, we have included multiple crypto and fiat payment methods allowing anyone with Ether, Bitcoin, GBP or USD to invest and receive their coins in return.
- Coin/Token management - Perhaps instead of simply sending tokens straight back to the investors Ether wallet, you may want a more complex token management solution created whereby investors can stake their tokens in return for regular dividends etc.
To find out more about ICO's and whether your business idea would be a suitable candidate, please contact us here.