What is ICO and how to earn it?

ICO (Initial coin offering) is now in a trend and all those who are involved in the crypto-currency market are trying to make money on them. But the question of financial benefit largely depends on how cheap it is possible to conduct the initial placement of tokens.

                                                                                Preparation for ICO

Starting the project, you need to pay attention to several cases for the main groups of the target audience. The first case is information for users. It's about people who will use your product. To do this, from the very first publications in the media, blogs and various thematic sites you need to show what you will be interested in the end user.

The next case will be addressed to traditional investors. They are people with a classical approach to investing and they expect that the project will be long-term. Later such people often become partners in the project. Here you need more information. If you come to the investor only with White paper, and you do not have any publications, then they will not even look at you.

• "We need to find media and authors who believe in your product and will write about your project and bring it to the ICO. It is not necessary to react vigorously to the promises to place the article in the famous edition in a few days. This is usually a deception - good profile publications do not immediately agree to contact you, " 

explains the managing partner of Byzantium ICO Agency Petr Bel from St. Petersburg.

And the third case for token investors. Such people are only interested in the prospect of profit. They think this way: we are now going into the project and in a few days we receive a certain amount of income for the investment. They look at your project in such a way that "we enter and the token starts to grow right now." Therefore, such investors need to provide a formula for profit, for which you need to develop an emission model of tokens. In a sense, this will guarantee a return on their investment.

                                                                                     ICO Market

When we conduct ICO, first of all we are guided by experienced owners of bitcoins - those who operated them two or three years ago. According to our estimates, this is 20-40 million users of crypto currency. But this is not the only source of raising funds.

Additionally, you can get money by interacting with token-funds, such as Satoshi Fund. They create distributed arrays of different tokens. Therefore, if you consider money and trust brokers, you can safely go to these structures.

Plus there is a "secret" source, which is called China. But money from China is attracted in other ways.

As an example, one of the Chinese ICOs, which took place in April this year. It was attracted $ 625 million in 15 seconds. But then it turned out that all these funds instantly turned out to be OKCoin - it's the Chinese currency exchange of the first division.

• "When the majority gnaw out at least some opportunity to get on OKCoin, and here almost immediately such funds are withdrawn, it becomes clear to everyone what happened. First, people conducted the ICO, and then attracted a large number of major players and withdrew funds to the stock exchange.

                                                                           

                                                                                           Cost of ICO

The issue of value mostly rests on a time factor. Accommodation can be spent for $ 50 thousand, and it is possible and for $ 300 thousand. For example, if you right now begin work with an eye to closing the primary placement in February, then it will cost you $ 50-100 thousand.

• "The question is that most people want to meet within 2-3 months. This task is already being solved for $ 300 thousand and more. About $ 10-15 million you can collect for $ 5-10 thousand evenly spent in PR and traffic. But this money will not include visits to conferences and speeches by speakers "

You should also take into account that if you prepare the ICO for half a year, then not all conferences where the products for investors actually go, there will be a place for your speech. You need to think about this in advance. You can certainly try to get for a fee - in this case have to fork out. For example, in Stockholm for a speech at a thematic event of the speaker lasting 15 minutes for your placement will have to give $ 10-20 thousand. It's incredibly expensive, but you simply will not have a choice.

                                                                                   When ICO is not needed

Conducting an ICO is necessary when you have an idea or some other considerations that can benefit both you and the people. In this case, ICO is an important tool for raising capital.

But each project is unique in its own way. Perhaps you already have a ready-made product that is ready for replication or has already been put into production. You are perfectly oriented in the audience, you follow the consumer mood well and here you do not need ICO. Most likely you need to attract more users, selling the product directly without intermediaries, but this is another solution to the issue.

And finally. First of all, in your projects involve people who will make your ICO more valuable. If you understand that this developer is close to you in spirit - choose it. Also, more trust large investors, especially those who participated in similar events earlier in the Bitcoin Foundation type.