How beneficial is launching an ICO with Ethereum Blockchain?
ICO token is still a bet for crowdfunding purposes in a genuine way. And with a solid Ethereum blockchain backup, it is going to be great. Know the benefits:
Tired of starting a Crypto business, huh?
You would be running your thoughts that you were deceived by those blogs who encouraged you by saying “Starting a cryptocurrency business is trendy and is a piece of cake”. I can feel that. But I should admit that despite the fact that the crypto business is not a piece of cake, it is definitely trending and those who can retain in that business can definitely win.
You would have lost due to the pile of procedures and approval that you should get from agencies like SEC to start your STO. There is nothing wrong that you would have felt ICO is not working or being fraudulent; because they are. But you must agree with the fact that not all ICO is fraudulent.
You know what, the great Ethereum started its journey as an ICO. Speaking of which, I am willing to say about the benefits of launching your ICO with Ethereum Blockchain.
I am not intended to write a motivational blog, but if those benefits motivate you to pick up ICO business enveloped with Ethereum blockchain, then I can pat myself that I had motivated a successful cryptopreneur.
Now, let us get into the blog by slowly swimming across the basics.
What is ICO?
ICO is the abbreviation of Initial Coin Offering. It is similar to IPO in a stock trade where the initial traders would be investing their money to participate in the trade. The only difference is that ICO belongs to the crypto space and does not come with any sort of regulations. Through this ICO, entrepreneurs can raise funds for their business by offering a token to the investor. The token can be held by the investors so that when the business earns profits, the dividend would be shared with those who are holding the tokens. The value depends upon the number of tokens each investor has. If the particular investor cannot succeed in initiating the business, then the tokens would be redeemed to the creator and the investments are returned to the investors in no time. This is how ICO works. Now it is time to know how the ICO terminology is scripted and how it is implemented. Read further to know about it.
ICO terminology and implementation:
ICO has a certain terminology and they have certain principles on how they are implemented. In our case, the ICO’s are implemented by the below categories:
- Pre-mining — This is a process in which the tokens would be created for ICO crowdfunding before it goes to the public. It is based on the number of tokens generated for deployment, the share for the tokens would be initiated. That is how crowdfunding would become a great success.
- Smart contract and gas fees — Smart contract is one of the efficient technologies that came out with blockchain technology. If you are about to crate an ICo make sure that you have provided all the details in the white paper and signed a smart contract. You need to make the transactions cheap, that is, the gas fees should be reduced that only can attract investors to buy the token.
- ICO campaign — The ICO development involves certain stages in which it can be built and developed. In that sense, the ICO development attracts higher investment that would increase the private sale of the token, which in the case can be reduced using the market method. After the ICO campaign, the tokens would be generated. Mostly the preferred token would be from Ethereum token-based ERC20 token only.
- KYC process and facilitative transactions — For facilitative transactions, you need to focus on creating a KYC account so that you can get the crowdfunding investments directly to your company account and make it work for your business. Without KYC, you cannot move huge capital.
ICO on Ethereum Blockchain:
ICO’s are usually built using the Ethereum blockchain. It is one of the reasons for being the prominent blockchain in the entire crypto space, but because of its prevalence and traditionality since the emergence of ICO. Ethereum blockchain has been present since the emergence of ICO and it is best to suit the ICO token for capital generation. Among the ethereum blockchain, it is the ERC 20 token standard which is being preferred among other token standards. It is because of its smart contract functionality. You cannot find a similar function in other Ethereum token standards.
If you are about to create your token, then you should not forget to create your wallet for your crypto business. It is because the investments that the investors send you will be stored in your wallet. It would be so great if you get a multi-cryptocurrency wallet. Because not all investors would be ready to invest in one particular cryptocurrency. Exchanging them to one cryptocurrency would be stealing their time and exchange fees, which will be a bad impression among the investors.
Apart from that, there are certain things that you should consider while creating your ICO on the Ethereum blockchain
Things to consider before starting with ICO on Ethereum blockchain:
You should make yourself ready with the below-mentioned technology tools and software to initiate your ICO token by yourself.
- Ethereum address on Ropsten Network
- Smart contract
- Text editor.
- My Ether Wallet ( most preferably a multi-cryptocurrency wallet)
Features of Ethereum ICO:
Some of the impeccable features of the ICO on the ethereum blockchain are given below:
- Investor dashboard.
- Token price control.
- Admin Panel.
- Custom UI and UX.
- Security system.
- Bonus system.
- Rewards and Referral program.
Benefits of Ethereum ICO:
- Anybody can raise their funds if they have a proper white paper with a smart contract.
- No restrictions to get started as they do not claim any requirements to start an ICO on the Ethereum blockchain.
- Effective for the startups and entrepreneurs as the launching cost is so low and effective when started with the ERC20 token standard. The exchanges would take a fee which would be collected from the token initiator’s fund after successful crowdfunding.
- Compared to other crowdfunding models, including the IEO, this is the most effective and reliable method to start a crowdfunding platform in the cryptocurrency arena.
- They have a high sort of liquidity and can generate the aspired capital in a short period compared to other crowdsourcing platforms. It is based purely on the trader’s confidence, smart contracts, and the ethereum blockchain ledger.
- There are no age limits when it comes to investment in ICO. If you are a potential investor in crypto and can able to invest in an ICO token that has their whitepaper and their smart contract perfectly, then there is no age limit or financial limit required to invest.
- Once invested, the investors will have full control of the funds. There is no third-party interference or the intervention of the company on their tokens.
- It has multiple fundraising programs like private sales, public sales, and airdrops. That allows some users to get tokens for free.
- You can link your ether wallet with your token to receive the funds with ease.
Wrapping it up:
I hope that the blog would have instilled confidence in you in starting an ICO business via the Ethereum blockchain. That is great news to hear. But make sure that you reach the best ICO token creation service provider to create your ETH-based ICO token. I am not trying to say that you will fail if you create a token of your own. But the fact is, it is only the service provider, who knows all the ins and outs of ICO token on the ethereum blockchain. There are various service providers in the crypto market, but it takes only an experienced and talented ICO token creation service provider who can offer you the best service related to your token on the Ethereum blockchain.