A quick guide on how to launch ICO & STO
Blockchain has been the most promising technology in the previous years which has brought desirable profits to the crypto traders. With composing multiple assets such as Ethereum, Bitcoin, Utility Tokens and Security Tokens, the world has reached a higher position!
Blockchain technology has marched towards high-end strategies such as ICO, STO, crypto exchange and much more! This has presented rich footprints in various sectors such as Finance, Healthcare, Media, etc!
Therefore Launching an ICO or STO is not going to be a tedious process with advancements happening in all these platforms! Moreover, there are simple guidelines available to create your own cryptocurrency!
What is an ICO?
Initial Coin Offering has been a fundraising platform for these years. ICO is similar to Initial Public Offering in which companies raise capital! ICOs are relatively a new phenomenon and also a dominant topic discussed on social forums! The first ICO was by MasterCoin which was launched in the year 2013.
These ICOs are easy to structure by having a large number of investors sending funds to the smart contracts which store the funds and distributes an equivalent value in the token.
Some benefits such as decentralization, and feasibility ICO has been emendating every single day! Through crypto enthusiasts, argue ICO is falling downside, the truth is ICO is changing!
With these benefits of ICOs, it may have multiple rounds of fundraising, with coins or tokens on offer, progressing in value until the release date, with early investors likely to have greater rewards embedded within their tokens as an incentive.
But the thing around 99% of ICO’s actually fail! Initial Coin Offering fails due to the following reasons:
- Inadequate Product market.
- Low Entry Barriers.
- Short term investment.
- Cryptoeconomics.
- Lack of utility.
This has been the reason behind the rise of Security Token Offering.
How did STO take over ICO? And What is STO?
When a token is subjected to federal security regulation and can derive its value from an external asset which is categorized as Security Token.
Security Tokens come up with feature-packed benefits such as increased market efficiency, lower issuance fees and fractionalization of larger assets, etc.
There are multiple security tokens such as:
- Equity Tokens.
- Utility Tokens.
- Debt Tokens.
- Asset-backed Tokens.
The crucial reason for the origination of STO is that it has resolved all the issues which were happening with ICO!
How to launch STO?
Security Token Offering can be launched into the following categories:
- Preparation
- Pre-STO
- STO
- Post-STO
What are the benefits of Security Token Offerings?
Here are the major benefits which I have identified:
- Increased liquidity has been a major advantage. The opportunity for investors to transfer and sell their tokens once they have been issued.
- The ability to divide the underlying assets into smaller units which makes it more affordable and easier to transfer allowing fractional ownership.
How do I create my own cryptocurrency?
Before getting into this question, you need to know the different types of cryptocurrencies.
- Direct Trade platforms: Provide tools for brokering immediate deals between users.
- Brokerage Platforms: This platform can be used by any person to buy the currencies/tokens set by a cryptocurrency agent.
- Cryptocurrency Fund Platforms: In this platform, one can buy and hold virtual assets for professional management.
There are certain tools available in the market for the creation of an exchange platform!
- Order Lists
It is a table which consists of all transactions made by the market players.
- Charts which display digital currencies volatility index
These charts can compare different trading pairs just before making the transactions.
- Complete details of profitable transactions
One should get the entire history of profitable transactions which has been happening till date for qualitative analysis.
Creating your cryptocurrency involves the following steps initially
In a web development phase, preparing and planning are the important steps which have to be considered before launching any product.
Before launching a cryptocurrency, you need to know the basic terms involved:
Major difference between token and coin
Coins are digital money that is created using encryption techniques to store the value over time.
The main characteristics of coins include:
- They are tied to a public open blockchain where anyone can join and participate in the network.
- They may be sent, received or mined.
Tokens are digital assets that made as a type of payment inside the project’s ecosystem! Tokens are often released through a strategy called Initial Coin Offering in exchange for existing coins!
Once you are evident with the prerequisites of creating a cryptocurrency you can get into plans for launching and creating your own cryptocurrency!
Determine your idea, technical documentation, white paper, and you need to choose the cryptocurrency or token you need to create. If you aren’t sure of this, I have a few options for you!
- Fork of the Cryptocurrencies right now
In the present era, many cryptocurrencies have appeared such as Litecoin, Bitcoin, Bitcoin cash, etc. Once done with a bit of customization, and new packaging you can kick-start your work!
- Developing your blockchain
This has been the least effective method in the crypto industry in terms of complexity, investment, and time required.
Summing Up
Cryptocurrency with its popularity has been experiencing a plethora of changes in the global market. Crypto enthusiasts should always be aware of the latest trends which are happening every single day.
With ICO and STO strategies ruling the crypto world, you can also be a person to create your own cryptocurrency in 2023!
Get in Touch with us
If you need one, you can go with ZAB Technologies who provide worthwhile services in the Crypto industry worldwide! Right from ICO service to private Blockchain development, they have catered countless projects to the clientele. Their talented masterminds in the development platform render solutions in accordance with client expectations! As a Crypto trader, I hired them for my services and have seriously noticed profit-boosting on my platform.
