If you are thinking of starting an ICO, then it might benefit your project in the long run. And there are a couple of ways to do this. We will be going over son basics to prepare you for what is to come since it is not a simple thing to make a proper ICO.
Before you do anything, you need an idea. For this article, we will do a thought experiment to use an ICO to fund a project. Our intention is to create an online game with a cryptocurrency to support in-game purchases. So before we move on, we have to look at our idea outline the project detailing what our plan is for the game and how we will integrate our cryptocurrency.
We create a concept outline where the game is set to be a space RPG, where the player will take on whatever role they see fit. The integration of a cryptocurrency will be done as taking the place of any in-game currency. We now have to deal with many aspects, but at this point, we only make a concept idea, so this will set the basic idea.
Before the whitepaper
Before you start writing your whitepaper, it is crucial that you read up on local law for example in Denmark to make a token and sell it whether it is a security or not I am to set up a company. Pay vat on sold tokens since they are regarded as a product on the line with refrigerator, computers and other items. Whereas in countries like the US. There are different laws for each state, and if you do it wronge, it might have some form of legal repercussions.
Once you have an understanding of the legal ramifications for your project, it is time to make a timeline set up when you want each part of your project to be finished remember to give time for making the basics. Because if you make the basics work right, it will mee a lot easier in the later stages. We have made an example of a timeline. We will still use our gamin example, and it all starts at year 0.
Year 0 Q1: Concept creation, legal work
Year 0 Q3: concept artwork
Year 0 Q4: Start working on a prototype
Year 1 Q1: Whitepaper creation
And you will continue setting realistic goals for when to start on something and when it needs to be finished, this first timeline is only for internal use, and remember as the ICO sells you will get more money and can divert more energy and human resources to the project. Thereby being able to shorten the amount of time needed for each stage.
The white paper
Before starting to write the most important document for you, ICO called the whitepaper you need to be aware of your target audience, in short, who do you want as an investor. Then you can start building your whitepaper we will take it step by step.
Her you will give a short introduction to what you want to archive with the project so that any interested investors can get a quick overview. this might be smart to write first and then revisit, at last, to see if your whitepaper is reflected in the white paper
Here it might be beneficial to split it up into two sections. First up is the background of your team/company such as when you were founded and what you have accomplished of successes. the second part is your vision summed up in one sentence
here you will split up the issues you wish to tackle for our game example it would be something like
Securing in-game item purchases
Securing in-game currency
Interactions between game and currency
Trading between games
Trading in-game for real currency
Under each section, the problem needs to be defined, without a solution. We will return to the solution later on. This is just to make sure that the target investors know what problems your product is trying to solve and why they are problems that need to be solved.
In this section, you will define what the product is. Remember to tackle the problems you describe. This way you show investors that you have a solution and a product that appeals to people. And it is okay to split it up into a different section for each aspect of the product.
If you got some unique technology, or you use some particular technology, it should be defined in this section, so that potential investors know what to expect you are bringing to the table.
How do you plan to market your ICO, do you expect to use social media, commercials on Facebook and whatever option you are thinking of using. It will also be a good idea to highlight how you are going to market the end product.
First, define the token it is an ERC20 token or something more advanced, then how the ecosystem is to be set up starting with token amounts and the distribution of tokens for our example, it will look something like this.
Total tokens for sale 10.000.000 distributed with 85% for sales 10% for marketing purposes and 5% for the team.
Then you need to settle on how the Tokens are to be used in our example we will be able to set up an exchange where the token can be exchanged into our final cryptocurrency, or we might issue a buyback with profits from the game.
Here you need to define a realistic roadmap and some pointers before you can make a roadmap.
Set a time for a working prototype
The ICO main sale should begin after the release of a prototype
Set realistic timetables
Here you should offer an honest risk assessment, and other documents related to the token sales.
Setting up a token is not hard if you are no got at coding go to Fiverr and hire a Freelancer to create the token for you. If you do have some experience in coding I recommend you read an article I found on MEDIUM explaining how to set up a token in 20 minutes, you can read it by clicking here.
NOW YOU ARE READY TO FOCUS ON YOUR PROJECT
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