We get this question a lot. How do you launch a NEO ICO?
Here are the steps.
- Website – You’ll need a professional looking website. Do not use Wix or a hosted platform as your website will be judged by technical folks. On the website, ensure that your Team section is strong. This means that you should enlist team members who have crypto experience to be advisors and developers. Here is an example of a Team page. Your company will need to build this team. AllCode members can be listed on your Team page.
- Social – You’ll need to have well-established identities on social networks. The big ones that come to mind are Reddit, Medium, LinkedIn, Facebook, Twitter, Discord, Telegram, and Github. You need to have activity here. If you do not have identities with activity on these social networks and you’re considering doing a crowd sale, setup these identities NOW. You will also want the people that you have on your Team page to be associated with your brand. Here is an example of the LinkedIn for AllCode. Your company will need to set all of this up. AllCode can be listed as associated with your entity.
- Your Website needs to support the ability to handle pre-ICO sales. Prospective investors will need to be able to register on your website. You will then need to do Know Your Customer (KYC) with them. We are not lawyers, but we can help guide you. Your website will need to filter out those prospective investors who can NOT participate in your crowd sale. You will store all prospective investors in a database associated with your website.
- Pre-Sale ICO. You will need to facilitate the Pre-Sale of your ICO through the Website. Your users will be given the opportunity to deposit currencies into your Ethereum, Bitcoin, or Neo wallets. They will need to tell you how much they contributed, and provide transaction ids so that you can verify that their transactions did in fact take place. When the ICO launches, we will dedicate a certain amount of Pre-ICO tokens so that you can transfer these tokens into your investors’ wallets.
- We are not lawyers. Our recommendation is to register the company abroad, e.g. the Caribbean. If you are in the United States, you will need to use the Howey Test. If you fail the Howey Site, then you may want to consider a SAFE or SAFT.
- Our recommendation is to run your ICO on Neo instead of Ethereum, the reason that you want to run your ICO on NEO is since the beginning of 2017 Ethereum has run up from $19 to $880 dollars. When the ICO takes place, people pay for your token in the crypto currency that the blockchain is running on. If you do the crowd sale on Ethereum, they’d pay in Ether. If you were raising $1 million in Ether, you’d raise approximately, 1,000 Ether. If you were raising $1 million in Neo, you’d raise approximately 12,000 Neo. Why is this important? Ethereum has had a massive run up. Neo has had a little run up. We believe that you will have a much bigger growth opportunity on NEO. Hence, if NEO grows from $80 to $240 and you own 10,000, your Neo will most likely be worth substantially more in fiat currency than if Ether increases $140 and you own 1,000 Ether.
- In order to deploy the contract, it costs 490 GAS. Each deployment of the contract costs 490 GAS. If you get the bonus parameters wrong in your ICO code and need to make a change, then you must spend another 490 GAS. The price at the initial writing of this article was ~$17.92 GAS. The price of GAS fluctuates. You can only buy GAS on certain exchanges, e.g. Binance. You can NOT buy GAS on CoinBase or Bittrex. To deploy your contract at the initial time of writing of this article would have been $8,780.00.
- Need a white paper. AllCode will help with this.
- ICO Code specific to your needs. AllCode will do this.
- Need to run on the TESTNET with GAS. AllCode will do this.
- Deploying contract. AllCode will do this.
- Providing a management console for the raise. Why do you need this? Once you deploy the contract, the contract is immutable. It doesn’t change. This means that you need to have some way to track what is going on to ensure things like: how many tokens have you sold, how long until the current round ends, who deserves a refund, etc. Code needs to be written on top of the contract to do this.
- For Neo and other currencies, you most likely will need to provide custom wallets to enable people to view their assets, transfer them, exchange them, etc. Allcode will do this.
- Last, but not least, prior to running an ICO, make sure that you have tested your contract and wallet adequately enough on the TestNet and MainNet so that you’re 100% confident that you can get the NEO out of your contract. This is arguably the most important thing. If you can’t get the NEO out of the contract, then people will be very unhappy.
If you have any questions, feel free to reach out to us @AllCode