Guide to ICOs in Socorro, NM

 

Guide to introducing an Initial Coin Offering (ICO) in Socorro, New Mexico.

There has been a lot of confusion on what an initial coin offering is (ICO– likewise in some cases called a token generation occasion or token sale), what type of companies an ICO can be utilized for, and exactly what goes into launching an ICO– from a task’s perspective.

Disclaimer: This is not to be construed as investment or legal suggestions, but rather indicated as a template to reveal the process behind an ICO, and exactly what a task’s stakeholders (team, board, stakeholders) must consider when conducting an ICO.

Given the blockchain industry is fairly brand-new, there isn’t a whole lot of info on the subject (from a task’s perspective), and with each brand-new ICO, teams are learning finest practices on what to do and exactly what not to do. Below is a guide of all of the details we gathered about the ICO process, with input from individuals who experienced the process first hand.

If you wish to contribute to this guide, or have any suggestions, do not hesitate to make ideas here:.

Pre-planning

The biggest two questions you need to consider initially are:.

  • What is the function of the token?
  • Are you sure you want to do an ICO?

Token: Considerations for 

  • What is the purpose of the token?
  • What function or energy does it carry out?
  • Is the token definitely needed?
  • Why does your project have to be on the blockchain?
  • Can you explain a viable economic design behind it?

If your application doesn’t have to be built on top of a blockchain protocol, you must concentrate before progressing. For example, the computational expenses of building an application on top of Ethereum is much more costly than something like AWS. You have to have a strong reason for why you are developing a decentralized application vs. a centralized application.

If you are not sure whether your application needs to be built on the blockchain or not, you ought to do more research and invest more time learning more about Bitcoin and Ethereum. Building a decentralized application is basically different than an application utilizing client-server architecture, and you’ll need to totally understand the parts of a blockchain and what can be built on top of this new architecture.

{ICO|Initial Coin Offerings in Socorro, NM 87801

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

On one-hand, you are offering future usage of your platform (not giving up equity). On the other-hand, you are becoming a public business on day one. You’ll have a big community you’ll have to manage post-ICO, and you have to make sure you want to handle this problem in advance.

Here are a few things to keep in mind while analyzing whether your project 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 team will get bombarded non-stop, multiple times a day, with questions about the cost of your token.
    You’ll have to be a worldwide business from day one.
  • All of your internal team discussions will likely be pushed openly.
  • There will be fantastic tension in aiming to construct things that are long-term important vs. short-term important.
  • If your product isn’t really open sourced already, there will be a huge backlash to become entirely open sourced. There is a strong expectation that lots of blockchain tasks are open-sourced jobs.
  • In general, cryptocurrency projects are way more public/transparent than common start-ups, or perhaps conventional public business.

In general, good blockchain projects look and operate far more like open-sourced software jobs vs. standard tech services. You and your group will have to decide both whether your application makes sense to be built on a blockchain + you wish to run as a transparent and open company.

Marketing is not enough, people have to know and trust your abilities.

Many of these early ICO’s were carried out by deep stack blockchain designers that belonged to the core crypto community, with high credibility and track record. The ICOs that sold out fast and quick did not come out of thin air. Early token investors– who by the way were also part of the core crypto community– understood these designers well, and trusted them, as their respective product idea had been gone over and peer evaluated for lots of months over Reddit, Twitter, Slack, Bitcoin Talk, numerous crypto podcasts, and so on.


Whitepaper

White papers are business strategies of the Web3 with which teams aim to raise your funds, typically prior to having a prototype. Composing a great whitepaper is the main task for every single team. Prevent outsourcing the writing to third parties. If you want individuals to take you seriously, you need to involve the entire team: 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 attracting investors with no technical knowledge and designers alike. It has to consist of:.

Trustworthy technical roadmap.
Possible company roadmap.
Clear tokendistribution design.
You can take your effort one action further and release a technical paper like the Ethereum’s Yellow paper or Zcash’s technical whitepaper. These documents provide a further insight into the technical implementation and are only aimed at individuals with deep understanding of blockchain technology. They give more trustworthiness to your tech know how, and enable online swarm evaluation. Technical documents have up until now generally been used for blockchain token sales and not for dApps token sales.

Model – Socorro NM 87801

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