Guide to Initial Coin Offerings in North Salt Lake, UT

 

Guide to introducing an Initial Coin Offering (ICO) in North Salt Lake, Utah.

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 type of companies an ICO can be used for, and exactly what enters into introducing an ICO– from a task’s viewpoint.

Disclaimer: This is not to be construed as financial investment or legal recommendations, but rather indicated as a design template to reveal the process behind an ICO, and exactly what a project’s stakeholders (group, board, stakeholders) need to consider when carrying out an ICO.

Provided the blockchain market is relatively brand-new, there isn’t a lot of info on the subject (from a task’s perspective), and with each brand-new ICO, teams are discovering finest practices on what to do and exactly what not to do. Below is a guide of all the info we collected about the ICO process, with input from individuals who experienced the process first hand.

If you want to contribute to this guide, or have any suggestions, do not hesitate to make ideas here:.

Pre-planning

The biggest two questions you have to consider initially are:.

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

Token: Considerations for 

  • What is the function of the token?
  • What function or utility does it perform?
  • Is the token definitely essential?
  • Why does your project have to be on the blockchain?
  • Can you explain a viable financial design behind it?

If your application doesn’t need to be built on top of a blockchain protocol, you need to think hard before progressing. For instance, the computational expenses of building an application on top of Ethereum is far more expensive than something like AWS. You have to have a strong factor for why you are building a decentralized application vs. a centralized application.

If you are uncertain whether your application needs to be built on the blockchain or not, you ought to do more research and spend more time learning more about Bitcoin and Ethereum. Constructing a decentralized application is fundamentally various than an application using client-server architecture, and you’ll have to fully understand the parts of a blockchain and what can be built on top of this new architecture.

{ICO|Initial Coin Offerings in North Salt Lake, UT 84054

An ICO is fundamentally different than raising money through VC’s or other traditional means.

On one-hand, you are offering future usage of your platform (not giving up equity). On the other-hand, you are becoming a public company on the first day. You’ll have a big community you’ll have to manage post-ICO, and you have to ensure you wish to deal with this concern beforehand.

Here are a couple of things to keep in mind while thinking through whether your task must do an ICO in the first place:.

  • Everything you do and all the actions you take will be shown in the cost of the token.
  • Your group will get bombarded non-stop, several times a day, with questions about the price of your token.
    You’ll need to be an international business from the first day.
  • All of your internal group discussions will likely be pressed openly.
  • There will be fantastic tension in attempting to construct things that are long-lasting important vs. short-term important.
  • If your product isn’t really open sourced already, there will be a huge backlash to become completely open sourced. There is a strong expectation that numerous blockchain tasks are open-sourced tasks.
  • In general, cryptocurrency tasks are way more public/transparent than typical startups, or even conventional public business.

In general, good blockchain tasks look and work a lot more like open-sourced software application tasks vs. traditional tech companies. You and your group will need to decide both whether your application makes sense to be built on a blockchain + you want to run as a transparent and open business.

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

A lot of these early ICO’s were conducted by deep stack blockchain developers that were part of the core crypto neighborhood, with high track record and track record. The ICOs that sold out fast and quick did not come out of thin air. Early token financiers– who by the way were also part of the core crypto neighborhood– understood these developers well, and trusted them, as their particular product idea had been gone over and peer reviewed for lots of months over Reddit, Twitter, Slack, Bitcoin Talk, various crypto podcasts, etc.


Whitepaper

White papers are the business plans of the Web3 with which teams try to raise your funds, frequently before having a model. Composing a good whitepaper is the primary job for each team. Prevent contracting out the writing to 3rd parties. If you desire people to take you seriously, you have to involve the whole team: from core devs to your sales people. You need a semi-technical description of how your project works and an easy to understand walk through for non-techies. The whitepaper needs to be appealing to investors without any technical knowledge and developers alike. It needs to consist of:.

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

Model – North Salt Lake UT 84054

You will be more reputable if you already have a product model. Encourage individuals 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 financiers. If your name is not Vitalk Buterin or Gavin Wood– just using examples here– you may have issues raising money only with a white paper.