The Phases of An Initial Coin Offering

ico scrutiny

An initial coin offering is an event where small businesses or startups offer investors unit(s) of cryptocurrency tokens for funds in forms of cryptocurrency or fiat currencies. Initial coin offerings have been in use for quite a long time now (since 2013) to raise funds for the marketing or development of cryptocurrency or blockchain-based projects by releasing tokens that are integrated into the project.

The fundraising process via ICOs by small business ventures and startups usually begin with the creation of a detailed document, the whitepaper. This document usually states and contains the complete details of the project such as the problem the project is meant to solve, the fund required to execute the project, the duration of the campaign, the accepted type of currency, and how the fund will be distributed once raised.

SEE ALSO:   John McAfee To Stop the Promotion of ICOs After SEC Threats

There are three different phases associated with the initial coin offering, below are the three of them:

Phase One: Analyzing

It’s important for small business enterprises or startups to analyze cryptocurrency tokens or blockchain technology requirements for their projects or businesses. In fact, businesses and startups need to know that the deployment of Dapps (decentralized application) are far more expensive than centralized apps.

Phase Two: Planning

The planning phase is very important as it has to with the safety and precaution against hackers, designs of the token, the token offering, and communication strategy. Businesses and startups will need to define the amount of fund they want to raise as well as the results they want to achieve. When it comes to the planning phase of an initial coin offering, one of the major focuses is the requirement of the business.

SEE ALSO:   SEC Says Ether Isn't a Security But Some ICOs May Be: Which ICOs Are Free?

Phase Three: Launching

The launching phase comprises of the execution of the ICO project. This is where all the plans for the project are executed.

The following are the steps involved in an ICO:

  • Pre-announcement
  • ICO offering
  • ICO marketing campaign
  • Legality of the ICO

Legal Disclaimer: The content of this website ( is intended to convey general information only. This website does not provide legal, investment, tax, etc advice. You should not treat any information on as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. We strongly suggest seeking advice from your own financial, investment, tax, or legal adviser. Neither nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from

SEE ALSO:   IMMO, Ton, Telegram, Starkware Industries, and IoTeX – These Are Some ICO Token Sales You Can’t be Part of

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Smart About Crypto!

Promise we won’t spam you!

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!