ICO Development: A Holistic Fundraising Guide for Entrepreneurs

Initial Coin Offering (ICO) is the modern-day fundraising avenue for most startups and SMEs (Small & Medium-sized Enterprises). Initial Coin Offerings work similarly to cryptocurrencies, excluding the concept the system mines a token with some value. These tokens are typically issued to assist the corporation in raising funds for certain projects, making them similar to stocks.

ICO Development: Introduction and purpose

It all began in 2013 when software programmer J.R. Willet published "The Second Bitcoin White Paper" to generate $600,000 for the token MasterCoin (which was later rebranded as Omni Layer). ICOs reached a new high in 2017, thanks in part to technological developments.

Entrepreneurs (like You) might use a common crowdfunding platform in conventional fundraising. However, in ICO Development, your token’s value plays a quintessential role. The more the token value, the more the investors prefer to invest in your venture.

Understanding The Tokenomics

Investors can fund initiatives by selling tokens that offer access to a network or service. Investors acquire the tokens or make money by betting that they will appreciate after the network becomes live. Understanding the supply and demand characteristics of cryptocurrency is referred to as tokenomics.

To comprehend a token's potential worth, you must first understand the how and why of it. After a successful launch, the price will likely settle if individuals have a compelling motive to acquire and use the token. The more people who use the token, the greater the supply shock, ultimately driving up the price. If a token's primary purpose is market speculation, it may be subject to long-term volatility, implying no actual reason to hold the coin. It will result in reduced demand and, as a result, price drops.

Conclusion

A good ICO token development company will receive your requirements and bestow unparalleled utility in the token (they develop). Make sure you hire an ideal technology partner before crafting your project white paper.