Costs connected with ICO launch

CornerRight 3 min


Icons/Technology/Tech No.5

Business analysis


Icons/Technology/Tech No.1

AI

Budgeting is one of the 3 traps that can sink your ICO. It requires careful and thorough analysis. Here are four basic elements that you need to pinpoint when launching your own project.

Infrastructure

If you already have a company up and running, you can use your existing infrastructure to build an Initial Coin Offering. It’s called “reverse ICO”, as a crowdfunding for established company.

But if you are considering a large scale ICO without an existing company, you’ll actually have to build one from scratch. You need to hire or outsource accounting, marketing, and IT specialists to take care of the various aspects of the project (considering that you will take the management role). It’s connected with recruitment and additional management costs.

Marketing & PR

Your marketing & PR expenses will usually include:

  • paid online ad campaigns
  • preparation of materials for investors
  • creating press releases
  • organising meet-ups
  • attending events

We usually add to this section two more crossover activities, located somewhere between IT and marketing: creating a whitepaper and designing a website for your ICO project.

In general, the budget for this activities depends on the scale you want to achieve. Paid ads tend to consume the largest part of it.

Legal support

We’re in a time, where the regulations are getting more and more complicated. Proper legal support is extremely important during your Initial Coin Offering to make sure you won’t encounter expensive traps on your way to launching your token.

Web & blockchain development

Talking about IT costs of your ICO, you need to build:

  • landing page
  • app for the investors
  • Smart Contract for your token

Usually the token is connected to a larger infrastructure, such as platform that utilizes it and provides the value for the investors. If it has to be connected to your existing platform, you will need a few adjustments from your IT department.

How to deal with the cost of ICO?

All the mentioned activities can be expensive. If you need a help to make the ends meet, consider ICO presale. It’s a short round of investment performed few weeks before the main event, usually limited to a few big investors. You offer them tokens at a reduced price, gaining cash buffer and improving cash flow of your company.

4soft created a custom ICO process to create similar projects – check the technical details of our ICO development:
>> How To Launch An ICO Project

Creating ICO for your company

Let’s discuss your project. Our blockchain development team is ready to help.

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