A detailed guide on how to plan a road map for ICO

 

An ICO or initial coin offering is a new cryptocurrency system which can help the entrepreneurs to raise fund in the market. With the help of an ICO, investor brings new cryptocurrencies to market but at high risk. The company uses it as a way to raise money in the form of new coins, app or services. Interested people can buy these coins from the company and can invest in the cryptocurrency issued by them. This can be considered as a token and have some utility in using them. This requires an initial coin offering platform to be formed for creating a new cryptocurrency for new business. 

These ICOs are used generally by those who want to start their new business and wishes to offer some goods or service related to the cryptocurrency but these tokens cannot be considered as stocks as both have many differences. For investing in an ICO, it requires purchasing of digital currency and having some basic knowledge of using these cryptocurrencies. For this, you can take the help of ICO development services provided by different companies which can help you to raise a fund with cryptocurrencies safely.

How to plan a road map for ICO

An initial coin offering road map is usually a graphical representation of the platform that needs to be created to issue a cryptocurrency for a new startup. It includes presenting the project goal and plans in the form of a timeline using a clear and transparent chart. Also, launching an ICO is not an easy task. It is very time consuming and thus ICO launching companies can provide you ICO launching services to plan a road map for you making it an easier task.

To plan a road map for an initial coin offering, the following are some steps which can be followed

Step 1: start it with an idea

To start a new project it is essential to come up with an idea, think over it and make sure whether your project needs an initial coin offering or not. If you are starting a project and want it to be successful, you must offer an ICO solution in the market that no one can ever provide. For this purpose, you require to have a complete understanding of the competitors and the target audience in the market. Moreover, if you are thinking to fund your startup with an ICO, you will require its token. Also to make your token value high, it must need to be integrated with the start-up in a useful way.

Step 2: Know about your competitors

It is very essential to know about your competition and competitors if you are starting your new business. This is because one can think your business similar to any other business already existing in the market. So if you want investors to invest in your company, you will require a cryptocurrency integrated with your startup in a meaningful way. Competing for the money of the investors can make you stand out from the crowd.

Step 3: find out the legal sides of the things

ICOs are nowadays the most regulated thing in the country. This is because of the frauds and spams associated with it. That is why it is still a doubtful thing whether initial coin offering is legal, regulated or subject to any future regulations. For this, it is essential to pay much attention to their legal terms and legal regulation. This issue can be resolved by hiring a lawyer which has much experience in cryptocurrency.

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Detailed Analysis And Information On Margin-Leverage Engine

Consider a trade between a gold jeweler and Mr. Amit. Amit has entered into a contract with gold jeweler where he agrees to buy 10Kgs of gold at Rs. 3000/- per gram after a period of 3 months. But due to the recent COVID-19 crisis, the value of the gold rose to a very high level. This resulted in the loss of the gold jeweler and profit for Amit. Had it been the case that the jeweler disagreed to respect the contract, it would have been followed with a long and grueling legal case. To prevent such cases, a concept of margin came into existence. 

What is Margin?

Margin is the collateral taken from the exchange from the trader when he enters into a leveraged derivative contract. But what does leverage mean? It is a feature that enables the trader to take a position that is much larger than his/her capital. Say, to buy 1 Bitcoin for $5,000, a trader with a capital of $500 can borrow $4500 in margin trading. In this situation, the leverage of the trader is 10x.

What are the types of Margin?

Crypto derivatives trading platform has below mentioned margins

Initial Margin: It is the minimum amount required to enter a new position as well as the minimum amount needed to keep that position from getting liquidated. The initial margin varies from the price of the contract and depends on the position size.

A trader buys 6,000 BTCUSD contracts at 10,000 USD with 25x leverage.

Initial Margin = Quantity of Contracts / (Order Price × Leverage)

= 6,000/(10,000×25) 

= 0.024 BTC

Maintenance Margin: It is the amount that will assist the trader to hold his/her positions. The moment the cash balance falls below the maintenance margin, the exchange will ask you to deposit more money or else it will trigger the liquidation. That means the exchange will force themselves to close the positions on their own.

A trader buys 6,000 BTCUSD contracts at 10,000 USD with 25x leverage.

The maintenance margin used for this position is:

Maintenance Margin = (Quantity of Contracts / Order Price) × Maintenance Margin Rate

= (6,000/10,000)×0.5% 

= 0.003 BTC

Initial Margin = 6,000/(10,000*25)

= 0.024 BTC

This means that this position may have an unrealized loss of up to 0.021 BTC (0.024 BTC – 0.003 BTC) before the occurrence of liquidation

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Launching an STO – A Comprehensive Guide

 

The blockchain is a core technique when it comes to supporting crypto assets like Bitcoin, Ether, security tokens and utility tokens. These crypto-assets have an enormous capacity to bring a complete transformation in the financial services marketplace. Many people are already familiar with utility tokens, and the security tokens are relatively novel concept. In this post, we shall elucidate the launching process of an STO.

A token, when subjected to federal security regulations, is known as a security token. Such tokens can derive its valuation from other external and tradable assets. Some of the examples of security tokens are equity tokens, debt tokens, utility and asset-backed tokens.

How to Launch Security Token Offering?

The STO Launching Process can be bifurcated into the following stages:

1. Preparation
2. Pre-STO
3. STO for investors
4. Post-STO

Stage 1: Preparation

1. Coming up with an idea for the security token and consulting a legal advisor and deciding the modus operandi for the token to gain value. The token’s value can be determined through the three principles:

• Role
• Purpose
• Feature

Every role defined for the token has a specified purpose against which the features can be apprehended depending on the need of the business.

2. The regulations to be followed in the process of creating a security token. For the token to be considered as a security token, it must qualify the Howey Test determined by the US Supreme Court. Howey test can be segmented as 3 independent criteria that must be fulfilled for creating a security token. They are:

• An investment of capital
• In the identical enterprise
• With the expectation of profits from the struggles of others.

If not, then the token will be deemed as a utility token. The regulations for the security token in diverse for every country. The issuer will have to adhere to the legislation of the respective countries in which he plans to issue the tokens.

3. The next step is selecting the correct security token platform. Security tokens require unique infrastructure and a new approach. It is a cumbersome process; therefore, you need to have a piece of thorough knowledge about the security issuance platforms. 

Given below is the list of the top security token platforms to launch an STO.

• Polymath
• Harbor
• Securitize
• Securrency
• Swarm

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Things to be Included in a Project Road map

 It can be said without a hint of doubt that cryptocurrency has been receiving a lot of market attention these days. Cryptocurrency is a phenomenon, especially with an unexpected subsequent crackdown on the ventures and crypto exchanges in the domain. It has been duly observed that many companies have begun to fathom the probabilities of their applications in multiple sectors. 

Finally, Blockchain technology has started gaining the recognition it rightly deserves. Due to this, having a cryptocurrency based project is gaining popularity amongst many companies. Many companies today dream of creating such cryptocurrency-based projects and accumulate offerings from the public for the execution of the project. They wish to create an Initial Coin Offering (ICO), Initial Exchange Offering (IEO), or Security Token Offering (STO).

Several ICOs failed over a period of time, not because they were scams, some had excellent plans and visions. These projects succumbed as many critical aspects of the ICOs were overlooked. However, many agencies provide ICO software development and ico development services to promise a smooth transition through the process.

Launching STOs (Security Token Offerings) is slightly complicated. You require a substantial understanding of the legislation dictating STOs with proper and equipped employees to manage assent with the Security Exchange Commission (SEC). Designing a smart-contract model for a security token requires much scrutiny; otherwise, the authority debunks it. SEC has criteria that must be comprehended and requisites for each security token. You must examine these rules very thoroughly and ensure to learn them. This knowledge will assist you in understanding what skill sets you are watching for in a developer and your legal team. STO Development Services and STO Consulting Services can be availed for better working of the project.

For IEOs (Initial Exchange Offerings), the accumulation of funds is done by a crypto exchange. This can be very easy as you do not require to establish a crowd sale website. In addition, the exchange that will offer the IEO will carry due diligence on your project and team members. This is done to protect the reliability of the exchange. Launching an IEO is almost the equivalent of launching an ICO, the important distinction being the method of acquisition of funds, which is through a crypto exchange in IEO’s situation. You need to watch out for a fitting exchange to launch your IEO. You might contemplate using multiple exchanges or utilizing a mix of IEO and ICO. Many agencies nowadays provide ieo development services and IEO Launch services to the issuers so that they can concentrate on the core operations.

Process for ICO Launchpad

Step 1: Pre-ICO Validation

Every project begins with an idea; it needs to be validated and converted into a plan for it to be implemented. To ensure that the plan succeeds it must have a proper ICO Planning, knowledge of token model and economy, custom business model, initial project audit, analysis of product validation, a perfect pitch deck and Social Community Build-up for investors, market analysis and setting up of a team.

Step 2: Legal Audit

No one wants to be engrossed in legal matters, especially with the changing dynamics of the market. A legal audit is a must to review the Corporate Structure and Governance. Also, to draft the necessary documents and follow the compliances diligently.

Step 3: ICO Marketing

Marketing is essential in helping the product reach its target audience. It will help the ICO campaign reach to the masses. Comprehensive marketing would incorporate a Roadmap & Marketing Strategy. It will be necessary for tapping Brand, Web, and Social Media Expertise, Bounty Programs, Airdrops, Digital Marketing, Community Management, and Roadshows so that all the mediums of marketing are covered.

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