ICO/Blockchain Consulting and Marketing Services

What is an ICO?

An Initial coin offering (ICO) is a means of crowdfunding via cryptocurrency. The term is often confused with 'token sale' or crowdsale, which refers to a method of selling participation in an economy, giving investors access to the features of a particular project starting at a later date. ICOs, on the other hand, sell a right of ownership or royalties to a project.

The first token sale was held by Mastercoin in July 2013. Ethereum raised money with a token sale in 2014. The first ICO was held by Karmacoin in April 2014 for its Karmashares project. ICOs and token sales are now extremely popular. As of July 2017 there were currently around 100 offerings, and a new web browser Brave's ICO generated about $35 million in under 30 seconds. There are at least 18 websites that track ICOs.

When a Cryptocurrency startup wants to raise money through an Initial Coin Offering (ICO), it usually drafts up a Whitepaper which shows what the project is all about, what needs the project will fulfill upon completion, how much money is needed to undertake the venture, how many of the virtual tokens the team of the project will keep for themselves, what type of money is accepted as payment, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as 'Tokens' and in some cases are similar to shares of a company sold to investors in an Initial Public Offering(IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new project or to complete it.

Initial Coin Offerings are one of the easiest and fastest methods for companies and individuals to fund their projects and for regular users to invest in projects they see value in. An Initial Coin Offering is an event that usually extends over a period of one week or more and in which almost everyone is allowed to purchase newly issued tokens in exchange for established cryptocurrencies like Bitcoin (BTC) or Ether (ETH). In an ICO, there can be a specific goal (soft and hard cap) or limit for project funding, meaning that every token will have a pre-designated price that will not change during the Initial Coin Offering period, which also means that the token supply is static. It is also possible to have a static supply with a dynamic funding goal, in which the distribution of tokens will be made according to the funds received. 

Our ICO Services

We offer Consulting and Marketing Services for startups looking to enter this space. Our services include the following:

  • Corporation Structure - how best to structure your organization for an ICO.
  • Whitepaper development - a great Whitepaper can make all the difference between success and failure.
  • Legal -  through our team of international partners we make sure that you are fully compliant wherever you are in the world.
  • Marketing -  the key to success! We make sure you are able to maximize your opportunity through an effective Marketing plan.
  • Technical Development - we have access to a network of more than 100+ developers.

Pricing

PR and Marketing - (dependent on soft and hard cap) $50,000 - $250,000
Localization Management (up to 4 languages) $4,000
Whitepaper Preparation $5,000+
Prospectus Preparation $4,000
Whitepaper Review  (1 hour = two page detailed feedback on content and business model) $750
ICO Website Landing Page w/ Infographics and Design $1,500
ICO Smart Contract Development $5,000+
ICO Project Manager ($5,000/pm x 3 months) $15,000
ICO Customer Service Rep ($2,000/pm x 3 months) $6,000
Token Exchange Listing Assistance (per successful listing) $5,000
Escrow Agent for ICO Funds $4,000
Due Diligence Report $3,000
Legal Services (3rd party) $400/600 per hr
Post-ICO Blockchain and Software Engineering $150/$350 per hr

 

Pricing Summary

Total Pre-ICO Investment (estimated) $100,000 - $450,000
Estimated Timeline 3 - 6 Months
Retainer (due upon signing) 1 x BTC or $15,000

 

The ICO Funding Path

Many startups are bootstrapped with little money to even pay for basic support services. However, there are ways to raise funding for each phase of your ICO preparation, leading up to a full blown ICO. There are no hard and fast rules here, as the amounts you need during each phase will vary from project to project and is determined by the total amount of funding you plan to raise.

Although simplified, follow these gudielines:  

Phase 1: Early Contributors Round -  This would be to friends, family and possibly some angel investors. This round of funding can involve discounting your tokens by up to 80%. Funding from this round is used to prepare for your ICO pre-sale. This can be done on a SAFT (Simple Agrrement for Future Tokens)

Phase 2: ICO Pre-Sale -  Now that you have raised some cash, you can bring people onboard to help you with the preparation of your pre-sale. This involves the development of all marketing assets and can include the development of your smart contract(s). Expanding your core team and adding advisors at this stage would be ideal too. Don't forget legal review and the drafting of disclosures which can be very, very costly and is dependent upon your token structure.

Phase 3 Main ICO Sale - By this stage you should have raised sufficient capital to make a real impression from a marketing perspective. Marketing is King! Do not forget this. We have spoken with many who have completed ICO's and raised substantial amounts of money ($10M -$50M). They all have a common regret along the lines of "I wish we'd taken more time to prepare. Instead of 2 months, we should have taken 4 months or longer preparing our Marketing efforts. Had we done so, we would have raised three times as much money.".

To find out more, call us today on Call Us Today +1 727-605-6197 or email us at info@smartcrowdfunding.us or use the Contact Us form.

Disclaimer: This article is the opinion of the author. It is not legal advice and should not be used to make business or legal decisions.

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