By Research Team
Initial coin offerings (ICOs) — also known as token generation events (TGEs) — present startups with the opportunity to bypass traditional early seed funding and raise capital directly from their product users. Unfortunately, many startups find the process overwhelming. This is why Strategic Coin offers utility token ICO advisory services designed to enable companies to maximize the potential of their token generation events.
Below, Strategic Coin’s utility token ICO advisors explain five steps you should follow to make your token launch a success:
5 Steps to Make Your Utility Token ICO Launch Successful
1. Create a Product
Token buyers have a myriad of options to choose from, so you must create an attractive product if you hope to capture their attention and convince them to contribute to your project. Your product should solve real problems and have clearly-articulated use cases. It’s best if you can demonstrate a working prototype ahead of the ICO, but you should at least craft a detailed whitepaper.
2. Draft a Whitepaper
In the crypto finance ecosystem, whitepaper serves a similar function to both a traditional prospectus and a pitch deck. It should cover a wide range of topics, including your operational plans and development roadmap, product description and use case, role and integration of blockchain technology, team biographies, and token distribution model. Whitepapers should be written in detail but must also be accessible to investors who are not from technical backgrounds.
3. Develop a Token
Next, you should develop a token to serve as the “fuel” for your project. Crypto tokens run on a blockchain and are governed by smart contracts — software protocols that instruct the token how to react in response to specific situations. Currently, most tokens are built on the Ethereum blockchain according to the ERC20 token standard, but developers can choose from any blockchain that offers robust support for smart contracts. Tokens are usually programmed in-house, but their development can be outsourced as well.
4. Obtain Legal Counsel
Before you launch your TGE, it is important to obtain legal counsel to help you accurately classify your token as either a utility token or security token. Security tokens are subject to SEC scrutiny, while utility tokens are not deemed securities if the ICO is structured appropriately. A legal professional will help you apply the “Howey Test” to your token to determine whether it falls under SEC oversight.
5. Build & Maintain an Engaged Community
Finally, you must build and maintain an engaged community. This is an integral component of your TGE’s success, as you must educate potential buyers about your product and earn their participation in your TGE. Many startups turn to social media channels such as Reddit, Slack, and Discord to interact directly with their communities. You should also perform market research to identify additional platform users and deploy targeted marketing campaigns that highlight your product’s use cases.
This step is vital to a token launch’s success, but many startups neglect it to their detriment. This is why many successful projects hire utility token advisors. A utility token advisor will collaborate with you to develop a customized marketing and community engagement plan, which will help you increase the likelihood of reaching your product development goals.
Strategic Coin is your go-to source for information about launching and participating in utility token ICOs. Whether you are a start up or existing business that desires to enlist the help of a professional utility token ICO advisor or a token buyer who needs help navigating the blockchain space, Strategic Coin will provide you with the resources you need to take advantage of market opportunities within the crypto market place.
Tokenizing your utility.
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