Launching a token sale platform: The pillars of ICO investing

Hit the nail on the head: Things to ponder to launch a successful ICO

The number of ICO projects is growing quickly; hundreds of ICO projects are being launched into the market every month. ICOs have raised over an astounding $7 billion in 2018 alone.

If you are looking to launch your token sale platform, get your head around the following elements that can make or break your ICO project.

Pillar 1: Team

An important thing to look for is an experienced team, the one which is known for blockchain development. Besides, the team needs to have relevant experience in the market that it is targeting. A competent team with capability of developing, completing and expanding the project is crucial for the success of a project.

Pillar 2: Idea

Without a realistic and compelling idea, a project is more likely to fail. To make your ICO succeed in the marketplace, here are a few things that you need to ensure:

  • Total addressable market

The market is filled with various opportunities when it comes to starting an ICO project. Consider all of the opportunities available and determine how big is each opportunity. Invest in a market that can bring you the desired results. As of now, Ethereum is a good market for investment.

  • Product market fit

People are more likely to accept and invest in a token sale platform that offers an innovative solution and solves a real-world problem. Come up with a unique, yet useful solution through your project that people will embrace and adopt.

  • Unique value proposition

A plethora of ICO projects are already available for investment, but unfortunately, not all are able to see the light of the day. To make a project stand out in the cut-throat ICO world, it is important to offer what the others are not offering. Of course, it should be different, yet useful at the same time.

Pillar 3: Execution

An innovative idea and a great team are good, but execution is equally important. Make sure that your project has a prototype and that your idea does not exist only on the whitepaper. People are more confident to invest in a project that is working to some degree, even if it is a prototype.

Pillar 4: Legal

The news of some governmental agency taking regulatory action or making a statement around ICO governance often do the rounds. Complete regulation in most countries is on the horizon and thus it is important that ICOs follow the legal aspect carefully.

Before preparing to launch your token sale platform, gain in-depth insight into the local ICO rules so as to be clear about the actions of your company. 

Pillar 5: ICO structure

Like conventional venture capital investing, the financial underpinning of a project influences the decision of investors. The characteristics of an ICO determine the upside of the token. It can be understood as follows:

  • ICO mechanics

Usually, ICO projects with a lower hard cap perform better than the ones with a massive hard cap. While it is imperative for parent companies to have sufficient funds, ICOs should have a convincing plan to use the proceeds as the potential upside decreases in proportion to the amount raised.

  • ICO deal structure

The structure of the deal should be such that the investors are at an advantageous position to the market. A few considerations of investors include:

Distribution: The token sale platform should have a compelling structure in place, for token distribution. A fair allocation of tokens among team and investors should be ensured.

Discounts: Discounts are common in the ICO space. Projects that offer exciting discounts to their investors are able to acquire more attractions, so evaluate how much discount you can provide to your investors and offer them the same.

Final words

The growing popularity of ICO projects shows that ICOs are here to stay. However, it is imperative to have a great idea, a skilled development team, a legal framework and a well-structured business plan to thrive in the competitive ICO world.

Cryptoxygen, a blockchain-powered exchange that aims to be the complete platform to buy, sell and store cryptocurrencies in the most advanced, secure, easy way, is a trusted ICO project to invest in. Cryptoxygen is a brainchild of a highly experienced team of entrepreneurs, and Cryptoxygen is a fully regulated company with licenses approved by FIU and by FSA, allowing users to trade cryptocurrency against Fiat Currency and to operate a virtual currency Wallet service.

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