For the cryptocurrency market, the preferred financing method has been the initial offers of currencies or ICO for its acronym in English. In the previous years, the practice of this mechanism increased considerably and enormous figures were reached in collections destined to new projects in the field of cryptoactives.
Despite its popularity, and due to multiple problems that originated with the projects, including a lot of scams and failures in the initiatives, the pace of its use has been declining little by little until today. In addition, regulators in order to avoid this type of situation, have also been dedicated to the creation of new regulations that seek to make the process more transparent and provide greater security to investors.
Leaving aside any position on the convenience in the intervention of the regulatory bodies and the benefit or harm that the measures for the ICOs and the rest of the ecosystem can bring as they are today, it is important to examine the best ways to effect These financing processes in the current market.
What aspects to take into account for its viability?
For the present moment that the market lives, with the variety of projects and platforms available, the increases and decreases in the prices of assets and the increase of the regulatory climate in different countries, it is always necessary to evaluate the elementary assumptions to achieve the objectives.
Territory to be made
One of the main decisions to be evaluated by the project is to establish the legal system under which the initial supply of coins will be made. As most of those who follow the market will know, the United States and even the European Union, have established some regulations regarding ICOs. Likewise, more countries have followed the step, such as Japan, the Philippines, South Korea, recently Spain and others, which maintain the step in the decision to give them the corresponding legal status and clear rules for their realization.
This election seeks to avoid certain legislations that have created obstacles rather than rules to carry out these financing processes, and in the same way, obtain the best advantage for the enterprise, as well as avoid any delay in terms of all types of authorizations that may to require.
Release modalities
Depending on the place where the initial offer of currencies is to take place, it is important to take into account the modalities that are already contained in its regulatory framework. On the one hand, this will help determine under what category the token's launch will benefit, and what kind of process will be the most adjusted according to its purpose.
In the United States, for example, there is a big difference with regards to the corresponding approvals of the regulator, the fact that the token is considered as a Security (Security) or as a Commodity. Each one represents its own requirements and difficulties.
On the other hand, depending on the type of project and the long-term strategy, they must also specify the type of process according to the regulations. That way they can define the participation of the right type of investor and the ways to achieve the allowed collection objectives.
Budget and planning
Carrying out an ICO requires well-planned efforts. Time, money, strategy and marketing are several of the aspects that the company must have under control at the moment of promoting a collection event of this type.
Regardless of the place where it is carried out and the regulations that direct the process, legal and financial advice should not be spared in order to obtain good results. Although these in particular can mean large capital expenditures, they will provide the steps for the approval of the regulators and will set the destination of the funds to the areas that guarantee the success of the collection.
One of those specific areas and to which companies devote much of the effort is marketing campaigns that effectively promote the initial supply of coins along with the entire proposal behind it. Even, it has been largely through these marketing maneuvers that many ICOs have been successful in their financing regardless of the utility of the project.
Is it advisable to launch an ICO right now?
The big investors say that it is always time to start, you just have to know how to do it. Currently, the cryptocurrency ecosystem, together with blockchain technology, has found an important space in the business world, allowing huge investments and promoting initiatives of great impact for different industries. In this sense, opportunities in the market will always be present if they know how to take advantage of the circumstances.
The revolutionary effect of cryptocurrencies in the finance sector and the expansion of blockchain technology to other areas has created an objective environment for regulators due to the novelty of the technology and the uses that are being given to it. In addition, it is taken into account that as in all businesses, there is also the possibility of participation of those actors who seek to carry out illegal activities such as money laundering and financing of terrorism.
However, although the intentions may be correct, there is always the risk of hindering the development of the market by creating excessive controls in the ecosystem, being here at this point, where the entrepreneur will have the task of looking for the indicated ways that allow him to realize his vision .
Finally, it is up to them, as well as the rest of the community, to guide the agencies in charge of regulation to use simpler and more balanced mechanisms, so that new projects and platforms open up and can bring benefits and benefits to users in the long-term.