Initial Coin Offering and how to raise funds with ICO marketing

Initial coin offering is a trendy financing method commonly used by cryptocurrency projects to raise capital. It allows companies to raise capital from investors without going through the rigorous and regulated processes required by financial institutions and venture capital firms.

However, lack of regulation on ICOs has resulted in the rise of fraud and scams, looking to prey on unsuspecting and uninformed investors.

In the following section, we look at the benefits of initial coin offering and how ICO marketing agency can help with ICO process.

Raising money through initial coin offering involves three simple processes. Firstly, the cryptocurrency startup creates a whitepaper detailing among other things, what the project is about, what the needs the project aims to fulfill and how long the ICO campaign will run for. In the next step, the company issue cryptocoins or tokens which investors or backers purchase with fiat or virtual currency like Bitcoin. These tokens represent utility in the form of future products or services delivered by the company. Furthermore, backers of initial coin offerings only participate in the ICO because of the potential return in their investments.

Finally, in the event, the funds raised do not meet the minimum amount required by the company, the money is returned to the backers and the ICO is deemed unsuccessful. Conversely, if the fund requirements are met within the specified timeframe, the money is used to further the company’s goals.

Although tokens do not have any inherent value, ICO offers a wonderful opportunity to buy cryptocoins that have the potential to increase in value in the future. If this comes to pass, early investors will recoup amazing returns. In fact, tokens purchased through initial coin offerings returned an average of 12.8 times the initial investment.

The ICO space is just getting bigger and bigger as new companies continue to hold successful initial coin offerings. Take Ethereum for example. At its ICO debut in 2014, ether was priced at around $0.30; today it trades at just below $140, making significant gains within that period.

Even the projects that are still going, 13% are classified as “semi-failed” because their teams have gone off the radar or their community has withered away. This means that the failure rate of 2017 ICOs stands at 59%.

Although these statistics point to the risky nature of ICOs, they strongly suggest that a lot of work is needed to establish a successful ICO.

In order to create and execute a successful initial coin offering campaign, you need to have the right strategy that will enable you to attract investor and funding you require. This strategy should therefore include among other factors:

TokenMinds ICO/STO marketing agency is committed to helping companies raise funds through initial coin offering. From whitepaper and website design to road shows and investor outreach campaigns, we can help you reach raise the millions you need and achieve success. Moreover, we only promote highly-vetted ICO projects, giving investors a wonderful opportunity to minimize risks when investing in cryptocurrency.

If you need any assistance with your ICO campaign, simply get in touch here.

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