SOME PROs and CONs Of LauNchinG a SucCesSfUll ICO

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ICO A.K.A (Initial Coin Offering) is a form of modern crowd funding of a cryptocurrency project. ICO is a new phenomenon that is swift and cut across geographical locations, ICO an obvious alternative to the conventional VC.

It was first used by Chris Larsen in 2016 to crowd fund his ripple (XRP) cryptocurrency project. ICO has been a breakthrough in the line of cryptocurrency i.e riasing funds, it involves trust between the project owner and the crowd or investors and of course the type of project involved should also be put into consideration.

ICO is a process whereby a coin/token is offered as an exchange for the well established crypto such as btc/ETH/eos, this coin/token are offered in batches or stages at a price which is usually very low depending on the type and viability of the project.

Some ICO prices increases with batches for instance: If the first batches of 3M coin could be exchanged for a certain amount of btc/ETH and eos.

The speed at which the first 3M coin/token is exchanged and or distributed to investors will determine if the next batch of the ICO price, be it increase or decrease but its on a rare occasions to see an ICO price decrease.
If the first batch of the coin/token is exchanged ahead of the scheduled time, then it is normal for the next batch of coin/token rolled out to be exchanged for even greater amount of btc/ETH or eos.
This gives the project owner a test to know the total amount of market shares he/she is sharing with other coin/token. (Pre-Ico).

ICO PRO AND CONS

Like i wrote above ICO has some determinant factors (pros and Cons) i.e the rate of successful of an ICO determines on the following factors:

1. REPUTATION:- The reputation of the project owner/team to some if not large extent determines the success of an ICO. You need a very popular and prominent team/CEO for a smooth and successful ICO.

2. PROJECT:- The type of project also determines because cryptocurrency and blockchain technology is still very new to a lot of people, just 6million people out of the world population is using/knows about blockchain and cryptocurrency. That to me is Avery little number, therefore the project has to be pleasing to the investors and be able to solve a distinct problem.

3. FINANCIAL SITUATION:- It is said that a team or owner that is financially comfortable might find it difficult to launch a successful ICO. Sometimes they get too comfortable just because they have enough fund and may decide to just airdrop all the coin. But in a case where the team/CEO is not financially buoyant, then there comes the zeal for a successful ICO launch, because in there own case there will be no alternative plan than for the project to be a success.

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NOTE:- ICO is a risk taken process in the crypto-world because you never can tell the rate of adoption of your project but with the right set of team and a good advisor ICO will always be a success.

4. MEANS OF LAUNCHING ICO:- this is also very important because, it depends on the already established platforms project owner would like to use, most coin/token uses the ethereum blockchain platform, some may decide to use waves, bitshares, or masternodes, this also plays an important role in how financially independent the team/CEO of the project are.

There are other cons which i didn't mention above such as:

LEGALITY
PROFIT AND LOSS etc..

Am very sure if all the above mentioned are put into good use and other resources added to it ther is 99.9% assurance of launching a successful ICO, good ICO are pre-planned then investors look forward to it, this builds excitement and gathers more investors before the real ICO.

REFERENCE:

1. https://ethereum.org
2. https://medium.com/bitfwd/how-to-do-an-ico-on-ethereum-in-less-than-20-minutes-a0062219374
3. https://coinsutra.com/waves-cryptocurrency/
4. https://www.quora.com/What-is-the-best-platform-to-launch-ICO
5. https://cryptorated.com/icopedia/top-platforms-for-launching-an-ico/

Written and compiled by @deeclown
July-12- 2018
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