In recent years many blockchain and cryptocurrency adepts are showing keen interest in launching their own Initial coin offerings (ICOs) in order to raise funds for their projects by creating and selling tokens (assets) in exchange for investment.
ICOs are usually built by utilizing the Ethereum blockchain, a prominent blockchain network in the crypto space. It will best suit the ICO token for raising capital. For launching an ICO on Ethereum, you need to create a token first and some standard protocols should be defined to explain the regulations for issuing tokens. ERC20 token standard with the smart contract functionality is the most preferred token standard on the Ethereum blockchain. This function is not available in other Ethereum token standard
If you want to know more about the processes that are involved in launching ICO on Ethereum, then continue reading the blog to know about the advantages of building Ethereum ICO and the key steps involved in building ICO on Ethereum. Let’s delve into the topics now.
Benefits of Ethereum ICO
- Anyone with a proper white paper and smart contract can raise their funds easily
- The cost for launching an ICO on the Ethereum blockchain will be low with the ERC20 standard. So, many entrepreneurs and startups find it effective to launch their ICO on Ethereum
- Compared to all other crowdfunding models, Ethereum ICO is the most reliable method of crowdfunding in the cryptocurrency area. The platform can also generate required capital in a very short span of time.
- The investor will have complete control over the funds once invested. So, there will not be any third party interference on the tokens
- Ethereum ICO includes many fundraising programs such as Airdrops, public sales, and private sales. This enables some users to get some free tokens.
- Ethereum wallet can be linked with the token for receiving funds easily
After knowing these awesome benefits of Ethereum ICO, I hope you would have now gained enough confidence in launching your own ICO on Ethereum. Now we can see the vital steps that should be followed for building ICO on the Ethereum blockchain.
Steps involved in launching an ICO on Ethereum
To build ICO on Ethereum, it is essential to get started with certain key elements that include the start date, the end date of ICO, the currency in which they will be shown, the minimum and maximum caps, etc. Also, it is a must to figure out the exact details while launching an ICO as all the parameters and aspects managing the ICO are written on the rigid digital ledger and so it becomes impossible to change anything later.
Also, you need to remember that you are dealing with the people’s money and so utmost attention should be given to even the very small details on ICO.
At this point, I would also like to say that it will be the smart way to approach an ICO development company with rich expertise in blockchain technologies to launch your own ICO on Ethereum blockchain effectively. But, before approaching an ICO development company you need to set some important parameters to make sure that your ICO will not have any pitfalls on both the operational and legal sides. Let us see those aspects now.
- Availability of tokens – after the transactions or once ICO ends
- Closed sale for a particular set of people before ICO
- Bonus scheme for early token buyers
- Returning of raised funds through ICO to the investors if the goal is not reached
- Release of raised funds
- Storage of funds in wallet or smart contract
I have also listed down some important features to be considered while launching your ICO. Those functionalities are as follows
- Security system
- Custom user interface
- Dashboard for investor and Admin
- Token price control
- Bonus system
You also need to understand that before launching ICO you should test each line of code to make sure that you arrive at a bug-free product by discovering security concerns, incorrect implementation, conflicting contract behavior, and so on. This is because the bugs can’t be fixed once the code goes live. In addition to these, you also need to utilize state-of-the-art technologies for Ethereum ICO, form a robust marketing plan, and a comprehensive website to update the investors about your Ethereum ICO
I hope you are now clear with some key steps involved in launching ICO on Ethereum. If you are looking to set foot in the crypto space by launching your ICO on Ethereum, you need to approach the best ICO development company as I mentioned in the previous section for ERC20 token development on the Ethereum platform. Bckodes is one such renowned ICO development company that delivers world-class development services for launching a robust ICO Platform on Ethereum blockchain. They provide complete support throughout the ICO process, right from the whitepaper creation, ERC20 token development to designing the landing page. So, approach Bckodes and succeed in launching your ICO on Ethereum right away.