Uploaded on Sep 23, 2020
No enterprise in this world can survive without the constant infusion of funds. ICO (Initial Coin Offerings) is a simple and cost-effective method for raising funds. They do not have any cumbersome guidelines. It does need some technical knowledge, community engagement, and regulatory compliance for a successful ICO.
Make the Process of Fundraising Look Easy Through ICO
Make the Process of Fundraising Look Easy Through
ICO
Introduction
• No enterprise in this world can survive without the
constant infusion of funds.
• ICO (Initial Coin Offerings) is a simple and cost-
effective method for raising funds.
• They do not have any cumbersome guidelines.
• It does need some technical knowledge,
community engagement, and regulatory
compliance for a successful ICO.
Some of the different methods of raising funds are
● Loans can be availed from financial institutions (either short term or long term) according to
the business requirements. It requires the submission of collateral, credit guarantee, and
history of cash flow.
● Venture capital is another way where an interested private investor will invest his personal
funds in a project. They can gain control of your company through equity. Only strong and
game-changing business ideas can receive financial assistance in the form of venture
capital.
● Many business development companies make hefty investments in small or medium private
companies. A sizable market share can be grabbed by teaming up with an existing
competitor in the industry. A contract needs to be signed based on the capital holding and
cash flow available.
● Creative projects can be supported by crowdfunding platforms like Kickstarter. Apart from
funding, technical assistance will also be provided to the entrepreneurs. ICO is a significant
game-changer as it not only raises funds but gets the whole-hearted support of a community
and rewards the early backers of a project with attractive perks.
Analyzing the Functioning of an ICO
● The interested investors will receive valuable tokens in exchange for
cryptocurrencies. The funds will be returned to the investors if the firm fails to fulfill its
minimum fundraising goals.
● The token offered will have some utility and it can be used for purchasing products or
services. However, no equity would be given for the holders of tokens.
● Higher demand for tokens can be generated by listing the project on the leading
cryptocurrency exchanges. A certain number of tokens would be reserved for the
team members and founders of the project.
● Blockchain technology is extremely beneficial for an ICO as it helps to prevent
incidents of forgery and double-spending.
Obstacles Faced by an ICO
● A high level of technical expertise is needed for executing a successful ICO. It
requires adequate knowledge about blockchain technology, meeting the fundraising
goal, and distributing the token among investors.
● Many view ICO’s as a risky form of investment due to the occurrence of scams in the
past. Market research and due diligence are a must for investors before putting their
money in an ICO. The execution depends purely on the intentions of the company
behind the ICO.
● The fluctuations in the market conditions can affect the token value that leads to
hindrances in the process of fundraising for an ICO.
● With the increasing crackdown led by regulators due to scam tokens and frauds,
ICO’s are facing a big challenge. Regulations are needed for enhancing the
legitimacy and credibility of ICO’s.
What a Firm Executing an ICO Must Keep in Mind
● A detailed roadmap for the project is necessary amidst the
uncertainty and volatility prevailing in the market.
● A professional whitepaper needs to be prepared.
● Promotional activities need to be carried out on a widespread
scale across a variety of channels.
● Listing your token on a prominent cryptocurrency exchange
would increase its value.
Why Choose Blockchain App Factory for ICO Development
● They have a team of experienced developers well-versed with
the changing industry trends.
● Customized and result-oriented solutions are provided at an
affordable cost.
● The project is delivered on time without levying any hidden
charges.
● 24x7 technical support is provided in multiple languages for
resolving any bugs and glitches faced by the investors.
Contact us
Website: https://www.blockchainappfactory.com/ico-development
Mail id: [email protected]
Twitter: https://twitter.com/Blockchain_BAF
Linkedin : https://www.linkedin.com/company/blockchainappfactory/
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