ICOs are a relatively an effective phenomenon since 2017. At its initial stage, ICOs has a record of raising a over $3 billion for certain projects. And that number is now highly expected to grow more in 2023. Now we will take a loot at the working mechanism of ICO fundraising and how it fulfills the fundraising goals.
What Is ICO And How It Works?
An ICO an effective method of fundraising powered by blockchain technology to raise capital investment for their project. In this method of ICO fundraising, a percentage of newly created cryptocurrency is sold to investors in exchange for fiat or other cryptocurrencies.
Key Differences Between ICO & Traditional Investment
1) Unlike traditional investment, ICOs are accessible to everyone – you don’t need to be an accredited investor to participate in a fundraising.
2) They are usually done through online platforms, which gives them a wide range of chances to acquire the required capital in a short period.
3) Most ICOs have a cap on how much money can be raised, which helps to control risk.
Guidelines For A Successful ICO?
Below mentioned are some of the basic steps that has to be considered for a successful ICO development for your business.
1. Be sure about your business model
2. Decide on the structure of your ICO
3. Go for a professional White Paper
4. Create a trustworthy website for your ICO
5. Build a trusted and potential community
6. Finally launch your ICO and succeed.
However, if you are new to the industry, then picking a successful ICO development services requires technical expertise, and effective marketing strategies. Hence it is better to get assistance from a professional ICO development company like Developcoins to carry out your ICO fundraising successfully.
