Initial Coin Offerings have opened up a new paradigm, especially for startups who want to leverage blockchain technology for their product, and use it to also raise money for their project. As the industry gets more populated, more ICOs are being launched, making it crucial to understand how it's being done.
First of all, if you want to launch a token for your project, you need have at least one Ethereum developer who can design the ERC-20 smart contract token for your company. This person doesn't need to do everything. Most of the coding can be done by a software company who is specialized in Ethereum, Smart Contracts, and ICOs.
Before coming to an agreement, make sure to ask contracting companies some of the questions below:
What are their references? Have they helped launch an actual ICO?
This is one of the most vital question that you need to ask up front. If they have successfully launched an ICO, then they most likely have the proper resources and experience to launch yours. It also gives you the opportunity to reach out to the mentioned company and ask about the quality of their service.
Which aspects of the ICO will they handle?
The process for participants of ICOs needs to be simple, and must offer assurance in every step so that the participants don't back out of the transaction. It is preferable that they also design the process for crowdfunding so that you can focus primarily on marketing.
Will they help you write the technical part of your Whitepaper?
Most serious investors review the Whitepaper very thoroughly before investing. They might also consult people with technical backgrounds to review the Whitepaper. So very technical detail in the Whitepaper needs to be explained and must not exclude any crucial mechanisms of your product's functioning model.
Can they deliver your token within your specifications?
It is important to prepare the full requirement specifications of your token so that you can agree what the end product will look like. For this to work, make sure that you have a knowledgeable tech staff on your project so that they can design the inner workings of the token and the smart contract.
Do they provide legal support?
Some countries, such as the United States and Singapore, have restricted its citizens to invest in ICOs. This means you have to present this disclaimers on your site. All the legal paperwork, disclaimer, and privacy statements need to be prepared and reviewed by a legal expert.
Will they support you should any bugs or complications manifest after token launch?
It is crucial to agree in the contract that any bugs that are found after token launch should be the responsibility of the software company. The pricing can be based on spent hour to fix the bug. The important thing is to agree on support should there ever be a problem.