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ICOCryptocurrency startups and developers are regularly faced with the challenge of issuing a cryptocurrency. In addition, we need to ensure the initial placement and withdrawal of the cryptocurrency to the exchange. In the opinion of many, this is a very simple matter, and all that is required is only the experience of the programmers. In fact, most of the issued cryptocurrencies are doomed to failure in advance – the funds spent on their creation will not pay off. The development of a successful cryptocurrency project requires the participation of a team of specialists of different profiles.
Countriesэ financial regulators seeking to streamline the cryptocurrency space have created their own regulations that classify cryptocurrency assets – the US Securities and Exchange Commission, the UK Financial Conduct Authority, and the Swiss financial market oversight agency. Although there are some discrepancies in the terminology of these guides, they distinguish 3 types of cryptocurrency:
If you issue tokens in the United States or intended for their market, you should be ready for the fact that you will come under the control and regulation of the Securities and Exchange Commission. Over the past year, more than one company has been embroiled in litigation with the SEC. A well-formed concept and knowledge of the specifics of each jurisdiction will protect you from future troubles.
Coin – a cryptocurrency based on its own blockchain.
A coin or coin is a cryptocurrency that is created from scratch and has its own blockchain, or it can be developed based on a fork of an already active cryptocurrency, for example, Ethereum or the popular Bitcoin. In order to support your own protocol, you need nodes. Sometimes there is another term – altcoin, that is, an alternative coin. Any coin other than Bitcoin has this name until 2011, which is the only cryptocurrency based on blockchain technology.
In order to create a cryptocurrency, our developers take the source code, make the appropriate changes to it, and compile it. The standard process for developing a cryptocurrency is usually the following:
Service or investment token.
The token stands out in that it does not have its own blockchain and nodes, but is based on the blockchain of an existing cryptocurrency. In most cases, tokens are created on the Ethereum blockchain. Although the tokens are intended to be used as a local currency or as a means of access to applications or services, the first investors buy up tokens for subsequent resale. Creating your own token requires the formation of a smart contract and its installation on the blockchain.
You should pay attention to such an important feature of tokens on Ethereum as the network commission, which costs a certain amount of ether and is charged for any transactions, including the transfer of tokens from one wallet to another. Therefore, to make a transfer, the sender must have both unique tokens and ETH coins in the wallet, which is not very convenient.
You will need to create a cryptocurrency website, which will concisely provide information about your project, intended for investors. As a rule, this is a one-page structure, easy to read and not overloaded with unnecessary information. The main language of the site is English, however, in addition to it, you can translate into about 5 of the most common languages in the world. Usually the following is posted on the site:
Initial Coin Offering is the initial presentation of tokens or coins to investors. In other words, it is the release of a certain number of tokens or coins in an attempt to convince potential investors to buy them for more liquid funds – ether or bitcoins – at the rate set by the creators.
After the release of the cryptocurrency is carried out and part of it is sold through your website, it is necessary to attract new investors and traders in order to spread the novelty among the audience and provide people with the opportunity to trade your cryptocurrency among themselves. This requires a listing on the exchange. Before placing your cryptocurrency, you will need to go through the following procedures:
Since 2019, the market has been dominated by the Initial Exchange Offering model. ICO and listing remained, however, a certain alternative model has appeared for those who create cryptocurrency and launch it on the market. IEO is a hybrid of listing and ICO. This is a token sale that is not carried out directly on the exchange. All you need to do is enter into a partnership with a suitable crypto exchange. This model has many of the following advantages:
In addition to IEO and ICO, a number of other solutions were created that contribute to the spread of cryptocurrencies, in particular, Initial Airdrop Offering (IAO), Initial Miner Offering (IMO), Security Token Offering (STO) and others.
Our experts are ready to help you create your own cryptocurrency and bring it to the market. We guarantee you a quality product, professional support throughout the entire cryptocurrency promotion procedure and a successful result. For advice, please contact us.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.