ICO – Initial Coin Offering or initial coin placement, by analogy with IPO – is one of the crowdfunding ways and raising investments to a startup. The difference from IPO is that investors are offered not shares, but the project’s currency.
At the moment ICO is the primary method of spreading crypto currencies and tokens. Due to the ongoing sales millions of dollars are collected and huge amount of tokens is sold, which subsequently become the assets and exchange mediums on the exchanges. What is necessary to create your ICO?
First, the project token is required (we wrote more about the tokens HERE). The fact is that many crypto-users are confused in definitions and they combine concepts such as token and crowdsale, especially when it comes to smart contracts.
It is necessary to understand that the token and crowdsale (ICO) are different contracts, moreover, they are not even necessarily two. All contracts and sales stages are divided into different addresses for security purposes and for minimization of confusion.
Assume that you already have your own token (otherwise write to us – we will help you create it).
ICO or Crowdsale represent a properly written smart contract. To program all the conditions according to your requirements, you need to answer the following questions:
1. What will be your token’s unit price? In this answer it is necessary to include both the exact price and the currency in which it will be estimated (most often it is Ethereum or USD). If the price is bound to the dollar rate, it is necessary to decide in which way the smart contract in the blockchain will be receiving the actual dollar rate: an administrator will set it manually (a simple method), the rate will be requested automatically by using Oraclaizer of the exchange.
2. How many ICO stages are planned? Will there be time limits and what are the exact dates of each stage? What changes will be implemented in the next stages (how much more expensive the token will become).
3. Will the white list of persons (admitted to ICO) be implemented?
4. How tokens will be sold: will be sent from the Crowdsale address (Standard), will be sent from the administrator’s wallet (Allowed), will be created at the purchase time (Minted).
5. Will the number of tokens for sale (HardCap) be limited? What to do with the tokens remaining after the sale?
6. Will a minimum limit on the amount of raised funds (SoftCap) be set, the failure of which means that ICO has failed and investors will be returned their funds?
7. Will there be a minimum investment amount from an individual wallet (for example, it is not allowed to invest less than 1 ETH)?
8. Should there be an opportunity to pause sales?
9. Is it possible to send the purchased tokens before a certain sale stage be completed?
10. Is it necessary to freeze the possibility to send tokens for a certain period after sales end?
11. What should happen to the funds accepted by a smart contract: they should be immediately sent to the owners’ wallets, distributed to several wallets, be frozen until the end of ICO, be available for withdrawal by the owner.
12. What additional requirements need to be implemented? (the number of owners, additional contracts for funds freezing, the exchange (reverse purchase), etc.)
It is possible to develop a reliable smart contract for your ICO by knowing the exact answers to all these questions on the basis of proven templates. You can copy all the questions to yourself, write the answers and send them to us – this will be a technical project for your smart contract. If you have any questions, remember – all our consultations are free, we will be happy to reply to you.
Sincerely, Grox Solutions.