Monthly Archives: December 2013

Guide to Initial Coin Offerings in Kelley, IA

 

Overview of launching an Initial Coin Offering (ICO) in Kelley, Iowa.

There has actually been a lot of confusion on what an initial coin offering is (ICO– also in some cases called a token generation event or token sale), what kinds of companies an ICO can be used for, and what enters into launching an ICO– from a task’s point of view.

Disclaimer: This is not to be construed as investment or legal recommendations, but rather indicated as a template to reveal the process behind an ICO, and what a project’s stakeholders (team, board, stakeholders) should think about when carrying out an ICO.

Provided the blockchain industry is relatively brand-new, there isn’t really a whole lot of information on the subject (from a project’s point of view), and with each new ICO, groups are learning best practices on what to do and what not to do. Below is a guide of all of the info we collected about the ICO process, with input from people who experienced the process first hand.

If you wish to add to this guide, or have any suggestions, feel free to make tips here:.

Pre-planning

The greatest two questions you need to think of first are:.

  • Exactly what is the purpose of the token?
  • Are you sure you want to do an ICO?

Token: Considerations for 

  • What is the purpose of the token?
  • What function or utility does it perform?
  • Is the token definitely needed?
  • Why does your task have to be on the blockchain?
  • Can you describe a practical economic model behind it?

If your application does not have to be built on top of a blockchain procedure, you should concentrate before moving forward. For instance, the computational costs of constructing an application on top of Ethereum is far more expensive than something like AWS. You need to have a strong factor for why you are building a decentralized application vs. a centralized application.

If you are not sure whether your application should be built on the blockchain or not, you should do more research study and invest more time learning about Bitcoin and Ethereum. Building a decentralized application is essentially various than an application using client-server architecture, and you’ll need to completely understand the parts of a blockchain and what can be built on top of this brand-new architecture.

{ICO|Initial Coin Offerings in Kelley, IA 50134

An ICO is essentially different than raising money through VC’s or other conventional means.

On one-hand, you are selling future usage of your platform (not giving up equity). On the other-hand, you are becoming a public business on day one. You’ll have a huge neighborhood you’ll need to handle post-ICO, and you need to ensure you wish to handle this problem in advance.

Here are a couple of things to keep in mind while analyzing whether your project should do an ICO in the first place:.

  • Everything you do and all the actions you take will be reflected in the rate of the token.
  • Your group will get bombarded non-stop, several times a day, with questions about the cost of your token.
    You’ll need to be an international business from day one.
  • All of your internal group discussions will likely be pushed openly.
  • There will be great stress in trying to develop things that are long-lasting valuable vs. short-term important.
  • If your product isn’t really open sourced already, there will be a substantial backlash to become entirely open sourced. There is a strong expectation that numerous blockchain jobs are open-sourced projects.
  • In general, cryptocurrency jobs are way more public/transparent than typical startups, or even standard public companies.

In general, good blockchain projects look and function far more like open-sourced software application projects vs. standard tech services. You and your group will have to decide both whether your application makes sense to be built on a blockchain + you want to operate as a transparent and open company.

Marketing is not enough, individuals have to know and trust your abilities.

A lot of these early ICO’s were performed by deep stack blockchain developers that became part of the core crypto community, with high track record and performance history. The ICOs that sold out quick and quick did not come out of thin air. Early token investors– who by the way were likewise part of the core crypto neighborhood– understood these designers well, and trusted them, as their particular product concept had been discussed and peer reviewed for many months over Reddit, Twitter, Slack, Bitcoin Talk, various crypto podcasts, and so on.


Whitepaper

White papers are business plans of the Web3 with which teams attempt to raise your funds, often before having a model. Composing an excellent whitepaper is the main task for every single group. Avoid outsourcing the writing to 3rd parties. If you desire people to take you seriously, you have to involve the whole group: from core devs to your sales individuals. You need a semi-technical description of how your task works and an easy to understand walk through for non-techies. The whitepaper needs to be interesting investors without any technical knowledge and developers alike. It has to consist of:.

Reputable technical roadmap.
Possible service roadmap.
Clear tokendistribution design.
You can take your effort one action even more and launch a technical paper like the Ethereum’s Yellow paper or Zcash’s technical whitepaper. These documents give an additional insight into the technical implementation and are just aimed at people with deep understanding of blockchain technology. They provide more reliability to your tech understand how, and enable online swarm evaluation. Technical papers have so far mainly been utilized for blockchain token sales and not for dApps token sales.

Prototype – Kelley IA 50134

You will be more trustworthy if you already have a product prototype. Encourage people to visit your GitHub page and play with the code. Please note, tasks without a single line of code raise lots of red flags in the eyes of investors. If your name is not Vitalk Buterin or Gavin Wood– just utilizing examples here– you might have problems raising money just with a white paper.