Many individuals want the opportunity to raise funds for their business by offering an ICO or Initial Coin Offering. However ICO’s can be expensive. Research shows they could cost anywhere between 50K – 100K on the average. New method however can come to mind which can allow you to get funding required for ICO.
This new approach is to create standard reward based crowdfunding campaign which can serve as ticket presale for the ICO event with incentives being offered such as ICO bonuses or discounts in the reward structure.
What is Pre-Sale ICO?
The pre-sale for ICO is another concept for introducing your official ICO. The idea behind the method is to get people to purchase into ICO tokens at discounted prices before it officially launches. Although this is a good offer, there could be investors that are looking to quickly dump all of their tokens after the launch of the ICO. This method is not for everyone, but it can be used to gain lots of attention to your ICO before launching and bring some revenue at earlier stage. Much like a pre-launch campaign for Crowdfunding. It is one way to start marketing your tokens and gaining the right attention to your ICO and company just before you fully launch.
There are many scams running around, so companies running ICO will want to make sure that they can prove to the potential investors that they are operating a legitimate business. Everyone who is investing into pre-sale ICO or ICO should do their due diligence when investing money. So be sure that you can provide a legitimate opportunity for investors to earn value from your business or product.
The key to the pre-sale ICO is to offer your ICO at a discounted price as shown earlier. The backers/investors could for example only receive the discounted price if they purchased a particular amount of tokens. Similar concept of pre-sale ICO can then be transferred over into Crowdfunding reward based campaign where utilizing a Crowdfunding campaign entity could sell the opportunity for access to the pre-sale of the ICO or even regular ICO event.
The Idea
Why would companies want to use reward based Crowdfunding campaign before they do ICO? There are several reasons why companies could use a Crowdfunding campaign before ICO. These include:
- Gaining the funding needed to implement the pre-sale or regular ICO.
- Creating awareness of their brand or product before ICO (i.e. marketing).
- Capturing valuable leads which will funnel over to the pre or main ICO event.
It is very costly to launch a new ICO. This way, your company has the opportunity to create a legitimate ICO without having to spend $50,000 to $100,000 to launch the ICO. If you are looking to gain funding for your company, there is a high chance that you would not have the capital to afford to launch an ICO. The money that is needed just for lawyers alone can range in the tens of thousands.
This is not to mention how much it would cost to develop a website, smart contracts, and deploy a marketing strategy. Everyone in the process needs to be paid up front, and if that cannot happen, then the ICO cannot be created. To gain access to this type of funding, one could use the power of Crowdfunding to gain the funding needed to launch an ICO.
Using Crowdfunding Approach
The process is quite simple. To utilize the full potential of the early stage Crowdfunding campaign for ICO, you could have a campaign in place to give exclusive access to those who want access to the pre-sale ICO or regular ICO event. The idea is to reward the backers of the Crowdfunding campaign a chance to purchase the ICO at discounted price, or provide them with other incentives. The token creators could potentially sell “early access VIP tickets” to access such ICO events via Crowdfunding paradigm.
Here is the example layout of the process:
- Step 1: Launch the Crowdfunding campaign – In this step, you are selling early access “tickets” or any other incentives (such as bonuses or discounts) for the pre-sale ICO event.
- Step 2: Pre-sale for the ICO – Give investors a good discount on the ICO tokens before they are released to the public. This way they will potentially purchase more tokens than they normally would, and at the same time it will generate the right type of attention wanted for the ICO.
- Step 3: ICO release – Give access to your new token to the general public.
If this seems like the right fit for your company, it is best to get a hold of the best crowfunding technology for this particular strategy. If you are already creating your ICO, and developing a website for investors to purchase the tokens, then most of the Crowdfunding solutions out there are not going to suit your needs. A simple WordPress theme may not be customizable enough to flow into your process.
You would also want to have a fully white labeled solution, where you can have access and control of the UI/UX. A great way to execute this entire process is by creating a single crowdfunding campaign, that can either be hosted on your existing website page or your custom website domain, and manipulate the UI/UX to be fluid so that there is minimal customer friction.
All types of front end manipulation as mentioned above are achievable using Thrinacia Atlas. You can purchase a subscription plan for as little as $39.99 per month, and completely customize the Crowdfunding campaign or website, from the UI to the actual functionality of the campaign.
It is a perfect solution for this particular strategy. If your company is keen on creating an early stage Crowdfunding campaign for the ICO and you are not sure where to start, then you can contact Thrinacia to gain access to the development and customer service team for any help needed with the campaign such as setup, marketing and so on. The Thrinacia support team can get your campaign up and running quickly, and can also add it to your existing website smoothly. More details about this program can be provided upon contacting us.