Initial Coin Offering's Life Cycle

An ICO's life cycle starts with am idea.

An initial coin offering (ICO) is often preceded by a definition. It's a fantasy. This is a vision. The novelty of blockchain technology, combined with a slew of global funding, has a way of spurring unprecedented innovation. Someone, or a group of people, with an idea, decides to start a blockchain project, and the rest, as they say, is history.

Internal team creation and development

If a blockchain concept has been developed, the founders will begin to take action and enlist the aid of other connections as team members. A group of people will build around this concept and begin strategizing their actions up until token distribution and beyond. Advisors and seasoned experts may be recruited to join the team in the early stages and provide guidance.

The project is being planned.

Many teams will begin with limited initial funding and will be forced to rely on other sources for long-term support. Keeping an ICO, in which early investors swap cash (or other cryptocurrencies) for coins, is a popular way of raising funds for new blockchain ventures.

Early investors in technology companies may obtain some sort of equity, but in an ICO, the coins provided to investors act as a substitute for equity. If and when the value of these coins increases, investors expect to be able to sell them at a higher price and benefit from their initial investment. As a crowd investment, the ICO is a novel way to collect early seed capital for project growth from a large number of small investors.

Early product development

A blockchain project that intends to run an ICO will usually start producing materials that can be used in the announcement of their concept. Since first impressions can mean the difference between a great ICO and a flop, it's critical for aspiring blockchain enthusiasts to make a good first impression on potential investors. This stage of the ICO lifecycle includes things like perfecting the concept statement, writing a white paper, and designing promotional materials. In addition, the team will have to design and build tokens for use in the ICO.

While these measures can be taken before or after a new blockchain project's plans are revealed, it is better for an ambitious ICO to have a firm structure in place before going public with their proposal.

Notification to the public

The next step in the lifecycle of an ICO will be for the team to reveal their concept and plans to potential investors until they have a roadmap to move forward. This announcement may include information about the project's progress as well as other marketing materials to entice investors to take another look at what the project has to offer.

Most notably, the team will announce their plans to organise an ICO. Anything relevant to participation should be included in the information. Typically, a timetable with dates and deadlines for the ICO will be mapped out. You should expect to see ICO token rates, delivery ratios, token lockup dates, and more along with this timeline. All about the ICO should be made public, enabling investors to make an informed decision and, ideally, will their chances of investing in the ICO.

Holding the Initial Coin Offering

The project will conduct an initial coin offering (ICO) when they are ready, which can last anywhere from a few days to several weeks. Since many ICOs are limited to a certain number of tokens, investors who want to take advantage of the ICO price must act quickly and be aware of the ICO's launch date and time. The project will assign tokens to its investors based on their investment amounts once the ICO is completed.

Continued improvement

The project would likely have collected enough money after the ICO to finance more growth efforts. The ICO isn't the end of the road for a fledgling blockchain project; rather, it should be the start of more significant attempts to introduce real technologies and make a global impact. While ICO funding isn't everything, it can help a new project get started on the right foot.