How much do you need to do ICO? $1 million@DeCenterOrg
-Hi! I've heard you are good at blockchain. How much money do I need in order to make an ICO?
I am getting asked by this question a lot recently. Friends, buddies, colleagues and players from the market, they all want to know the answer.
For the sake of saving time, I will answer in a shot manner:
-If you have a great team with a lot of experience - $500,000. If you are not tech-savvy enough - then prepare to empty your pockets for $1,000,000. That's for sure!
Moreover, I am not going to tell you a long story by describing all points you need to cover. I am just going to list you things you most definitely need to do. By the way, you need around 3-6 months of preparation just to make sure you good to go. So, let's roll!
· Describtion (whitepaper)
· One-pager website, presentation, video
· Roadmap and milestones
· Financial plan and data
· Legal framework and preparation of the contracts
· Marketing (before and after your ICO)
· Taking care of your investors (queue, AML/KYC checks if Americans involved)
· Customer support (WIKI, chat, FAQ)
· Blog or news feed
· Social media (community managers)
· Technical aspects of integration your project into blockchain
· To group everything user might want to know into one webpage
· Conversion of cryptocurrencies to fiat money (including all transfers)
· Escrow part
Budget you have to have for that: $200,000-$300,000 for marketing and bounty, $100,000 for lawyers, $100,000 for technical part. And we are talking here about pretty simple project, where you don't need sophisticated smart-contracts and complicated technical part. You just have to link blockchain to existing processes in your business. So, given that you already have (or planning to have soon) a business, you simply want to raise some capital through cryptocurrency in order to execute your goals.
Nevertheless, in reality you may want to have a lot more $. If your project is really into high-tech zone, then your budget jumps as high as $1,000,000. You need to do a hell lot of staff: webpages, applications, dashboards. Also, ensure a comprehensive safety environment. You have to rebuild your business processes into blockchain etc.
So, we have a pretty interesting story here: the offline businesses that most often don't have a team, need to spend a $ million. From the other hand, the businesses from high-tech industry with relevant experience can spend half of that. But the thing is that they would want to spend more in order to make their project perfect and blockchain-ready. That way they have more chances to succeed in a very competitive market.
Some would say that my estimations are excessively high and you can make it just by having at least $100,000. Well, I would say it is enough too, but you are not going to raise even $1 million. You just won't be able to stand out from the crowd. Our market is noisy and highly competitive. You should really do your best to be noticed.
Thanks for your attention! It was Eugene Gordeev, founder of #1 cryptocommunity DeCenter