Guide to ICOs in Norway, ME

 

Guide to introducing an Initial Coin Offering (ICO) in Norway, Maine.

There has actually been a lot of confusion on what an initial coin offering is (ICO– also sometimes called a token generation event or token sale), what type of business an ICO can be used for, and what goes into launching an ICO– from a job’s point of view.

Disclaimer: This is not to be interpreted as investment or legal guidance, but rather suggested as a design template to show the procedure behind an ICO, and what a project’s stakeholders (group, board, stakeholders) must think about when carrying out an ICO.

Provided the blockchain market is reasonably new, there isn’t a great deal of details on the topic (from a job’s point of view), and with each brand-new ICO, teams are discovering best practices on what to do and what not to do. Below is a guide of all of the info we gathered about the ICO process, with input from people who experienced the procedure first hand.

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

Pre-planning

The greatest 2 questions you have to think about initially are:.

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

Token: Considerations for 

  • Exactly what is the function of the token?
  • What function or utility does it carry out?
  • Is the token definitely required?
  • Why does your task have to be on the blockchain?
  • Can you describe a feasible financial model behind it?

If your application does not need to be built on top of a blockchain procedure, you ought to think hard before progressing. For instance, the computational expenses of developing an application on top of Ethereum is much more pricey than something like AWS. You have to have a strong reason for why you are constructing a decentralized application vs. a centralized application.

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

{ICO|Initial Coin Offerings in Norway, ME 04268

An ICO is essentially various than raising money through VC’s or other traditional ways.

On one-hand, you are selling future use of your platform (not giving up equity). On the other-hand, you are ending up being a public business on the first day. You’ll have a big neighborhood you’ll have to handle post-ICO, and you need to make sure you want to handle this burden ahead of time.

Here are a couple of things to bear in mind while analyzing whether your job should do an ICO in the first place:.

  • Whatever you do and all the actions you take will be reflected in the rate of the token.
  • Your group will get bombarded non-stop, several times a day, with concerns about the cost of your token.
    You’ll need to be a global business from the first day.
  • All of your internal team discussions will likely be pushed publicly.
  • There will be fantastic stress in aiming to build things that are long-lasting valuable vs. short-term valuable.
  • If your item isn’t really open sourced already, there will be a huge backlash to become entirely open sourced. There is a strong expectation that numerous blockchain jobs are open-sourced projects.
  • In general, cryptocurrency projects are way more public/transparent than normal start-ups, and even traditional public companies.

In general, excellent blockchain tasks look and work far more like open-sourced software application projects vs. conventional tech organisations. You and your team will need to choose both whether your application makes good sense to be built on a blockchain + you wish to operate as a transparent and open company.

Marketing is not enough, individuals have 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 community, with high credibility and track record. The ICOs that sold out fast and fast did not come out of thin air. Early token financiers– who by the way were likewise part of the core crypto community– knew these developers well, and trusted them, as their respective item idea had been discussed and peer reviewed for many months over Reddit, Twitter, Slack, Bitcoin Talk, numerous crypto podcasts, etc.


Whitepaper

White documents are business plans of the Web3 with which teams attempt to raise your funds, frequently prior to having a model. Writing a good whitepaper is the primary task for every group. Avoid contracting out the writing to 3rd parties. If you desire individuals to take you seriously, you need to include the whole group: from core devs to your sales people. You need a semi-technical description of how your job works and an easy to understand walk through for non-techies. The whitepaper needs to be appealing to investors with no technical knowledge and developers alike. It needs to include:.

Reputable technical roadmap.
Plausible company roadmap.
Clear tokendistribution model.
You can take your effort one action even more and release a technical paper like the Ethereum’s Yellow paper or Zcash’s technical whitepaper. These documents give a further insight into the technical application and are just aimed at people with deep understanding of blockchain innovation. They give more trustworthiness to your tech understand how, and permit online swarm evaluation. Technical papers have up until now primarily been used for blockchain token sales and not for dApps token sales.

Model – Norway ME 04268

You will be more credible if you currently have a product prototype. Motivate people to visit your GitHub page and have fun with the code. Please note, projects without a single line of code raise many warnings in the eyes of investors. If your name is not Vitalk Buterin or Gavin Wood– just using examples here– you might have issues raising money only with a white paper.