What is ICO Listing Online?
In this article we are going to explain what an ICO is, how it works, and some of the dangers involved. Further down we have a list of ICO website listing.
First off, what is an ICO? In the briefest terms, an ICO is an initial Coin offering, which is a way to launch a new coin by selling it to investors during a launch period.
That may have been a little complicated. So, let’s look at traditional finance for a quick moment. Coinbase, which is a crypto and fiat-based company, has recently launched their IPO, which stands for Initial Public Offering.
In short, this means they are selling some of their shares of their company in return for money, and that hopefully that money can be used to help fund some of their projects and whatever else they might need capital for, just like Coinbase.
A coin or a token can do what is called in the crypto world, an ICO an initial coin offering, though the name might be the only similar thing in the traditional meaning. Basically, a token creator can sell you a bunch of tokens for a set price to get the token out into the market and raise capital for the creator or project.
Let’s discuss the differences between an IPO and an ICO. When you go to buy a stock that’s participating in an IPO, you gain a certain amount of power within that company. You are owning fractions of a portion of that company.
This means you can even vote if you hold enough shares. In the case of investing in an IPO, you are hoping that the project you’re investing in will do well. This means you should be doing a ton of research if you’re putting in a decent amount of money.
In some cases, an ICO doesn’t even have a finished product, which means there’s an increased risk. But some ICOs have projects that are working and testable products. So that’s something to think about when you’re investing.
A big difference between IPOs and ICOs is that ICOs aren’t regulated by the government. There is nothing that is stopping you from getting your money taken and run off with. And this is actually a big problem in a lot of rug pools.
If you don’t know what a rug pool is, it’s when a developer takes all the money from a project and runs away with it. In a sense, they pull the rug out from under you. If you want to dive deeper on that topic, we have a specific video that will be linked in the description.
In fact, many ICOs in the past, especially around 2018, were rug pools, meaning the developer would raise a bunch of money and then never develop the product simply because there was no official regulation.
Now IPOs are officiated by the government and many three letter agencies that surround them, such as the SEC. They regulate all the decisions and make sure that you as an investor, you aren’t completely ripped off.
And this lowers the risk for investors. ICOs, however, are not regulated. In fact, anyone could create an ICO. So back to the intro. When we were talking about creating our own whiteboard crypto token, we figured that it would take a while to be able to create an ICO and then launch a token, but that’s not the case.
In fact, it’s really easy. Let’s go over the steps it would take to launch a token. First, you need a white paper. A white paper is basically a statistical explanation for what issue your coin or token will be solving and specifically how it is going to be different from other coins or tokens.
Some of the issues you want to cover in your white paper is a marketing plan and what problem the coin solves, how the coin is different, specific code mechanisms of the coin, developer fees, including developer wallets and future spinning plans and the long term goals.
Now, there’s a lot that goes into a white paper, and if you want a video on the specifics of them or how to read them, go ahead and say something in the comments below. It’s actually interesting where they originally came from.
Step number two is that you’ll need to market your coin. And this is where it can get difficult, especially since there have been so many influencer scams and rug pools in the past. In fact, ICOs have a ton of negative emotion around them due to a ton of ICO scams around 2018.
To launch a successful ICO, you need to get people to see your new coin, the problem that it solves, and then get them to help fund you. Now, there are many different ways you can do this. Some of the most popular advertisement methods are to advertise on different platforms, specifically crypto platforms.
You can also join groups and please never use a discord bot. Or you could even pay us $100,000 and we could advertise your new coin on this channel. Just kidding. We don’t do sponsorships on this channel, and we probably never will.
Lastly, step three is to sell your coin on a platform. Now, there are platforms out there that will allow you to collect money for presales, and then those platforms will distribute your coin to everyone who bought them.
This way, the investors don’t have to trust just you, they can trust the third party platform. So launching a coin is really simple. But that begs the big question why would you buy a coin early?
