ICO on Reddit – Nowadays, ICOs are getting a lot of buzz despite stricter regulations imposed by the SEC and the greater disclosure requirements. Several business organizations are still launching their own ICOs.
Most of these companies have done so to launch their brand of crypto tokens, which can be traded and used within the blockchain platform of the company.
Reports obtained from the Crypto World have revealed that more than $4 billion was raised through the ICOs that were held during the first three months of 2018. We strongly believe that this is just the beginning of a trend since more and more businesses are continuously creating their own digital tokens.
What is an ICO?
One word that’s often being talked about in the financial industry in the recent year is cryptocurrency. If you’re feeling disappointed in yourself for not being able to get into the ground floor of some of the world’s blockbuster coins like Ethereum and Bitcoin, you may need to consider investing into an ICO, or the Initial Coin Offering. However, you should know that ICOs are a bit risky even under the best situations and have a high possibility for scams.
Just imagine this – you’re one of those Silicon Valley startup companies having a great idea for a new cryptocurrency. Maybe you want to streamline the payment system for the parent/babysitter so that the transaction can be digital. That’s an excellent idea, and perhaps we can call your coin the BabyCoin. However, you need to have people who can give you money for you to be able to produce the currency. You can perhaps visit a bank and see if you can have some capitalist investors to venture into your business.
But what happens if you’re capable of raising funds without the need to give up the company’s ownership? This is when the ICO comes into play.
This is how it works. You will need to come up with a document that details how the system is going to work. This is what they refer to as the white paper. After this, you need to come up with a website where you can talk about the great idea that you have come up with. You can then ask people to send you money in the form of Bitcoins or other cryptocurrencies, and in exchange, you’ll be sending them BabyCoins. These people will hope that the BabyCoin is going to be used several times in high circulation so that its value can increase.
It’s worth noting that unlike the IPO, or the Initial Public Offering, investing in an ICO will not result in getting ownership in the company that you are giving your money to. You’re basically gambling in the hopes that the worthless currency that you’re paying now will soon increase in value and you can make money out of it.
Who Can Launch an ICO?
Anyone can pretty much launch an ICO. As of the moment, there’s a limited regulation imposed on the ICOs in America, and this means that as long as you can set up the tech, you are free to give it a try and have your currency funded. As of now, the world of cryptocurrencies is similar to the Wild West, where there’s plenty of gold in the hills, but with only a limited law to speak of. This situation can work for your benefit, or you could get swindled. Of all the funding venues available now, ICO is perhaps the easiest to get scammed. Since there’s no regulation imposed yet, anyone can do the work and will trick you into believing that they have an excellent idea, yet they may end up running away with your money.
So if you are really set on getting into an ICO that your friend has been telling you about, you should first do your homework. You need first to ensure that those people who are putting up the ICO are real and are accountable. In this day and age of the Internet, it’s easy to look for a stock photo to be used in a website that looks authentic and convincing. Thus, going the extra mile to do your research is really worth it.
How to Start Your Own ICO?
The most important thing to do to get started is to ensure that either you or anyone involved understands the concept behind blockchain and cryptocurrency. Even if anyone is capable of making an ICO, it doesn’t necessarily mean that everyone should be in it. You should be capable of answering questions on the spot and know every little detail regarding the ICO.
Take time to ask yourself if your business can really benefit from an ICO. After you read this article, it’s a good idea to talk to someone who can possibly evaluate your specific idea and determine if it’s good or not. If not, then you might be better off getting into other much safer avenues for funding.
On the other hand, if you’re keen to move forward, then you need to begin with a white paper. This is a document that details exactly what your currency offers, something that has not yet been done in the past. It should also explain how your idea is better than others. The document must not only be informative, but engaging and very detailed as well.
Just like any business, you should be able to entice your buyer at the first page of your white paper. For instance, Ethereum’s white paper has clearly explained what a blockchain really is and then it details how they plan on developing the project, which Satoshi Nakamoto already started. They have indicated this at the end of the white paper’s first page.
After you have created your white paper, it’s time to advertise. You need to reach out two targets – people who have knowledge of how ICO and cryptocurrency work and people who have absolutely no idea. It’s a good idea to look for people who you believe would be excited with your new venture because these people will be more than happy to hand over their money if they believe that it’s a good deal for them.
Going back to the hypothetical company above, the BabyCoin, perhaps you need to reach out to mommy bloggers and see if they are willing to come up with an engaging content that will explain BabyCoin and how it’s a great invention in the industry of babysitting. Make sure that they will also mention the nature of the deal because the SEC has warned investors that it’s illegal to use social media to promote ICOs without stating the compensation that they will be getting.
You may also need to have your programmers and leads to address all questions in social media, including Twitter and Reddit. Consider submitting your ICO to listings that manage a database of quality ICOs. This is how you can actually get people in the crypto community to be excited about your new venture, which will hopefully become popular on the Internet.
Why Digital Tokens Are Here to Stay
Crypto tokens that are blockchain-based have made life much easier for all of us. These digital tokens can be traded in an open P2P network. You’ll only need an Internet connection and an e-wallet that’s assigned to a specific IP address to get a token.
Holders of the tokens can trade the tokens with anyone all over the world in only a matter of minutes. It’s safe, secure, and cannot be taken for as long as you’ll adhere to the basic guidelines of keeping the tokens secure. The blockchain has also made it possible to maintain a record of all transactions that have taken place within the network.
It’s not surprising that the blockchain has a complete record of all the digital transactions that every user has created.
Alt Coins and Promoting an ICO on Reddit
Just as Bitcoin is considered a popular cryptocurrency in the blockchain technology, Reddit is no doubt the world’s most popular messaging board.
Dubbed as the front page of the Internet, Reddit is used by millions of users from around the world every single day. Thus, it’s important that you know how to promote an ICO on Reddit.
Having an extremely active community of posters, Reddit is a perfect messaging board that can spread the word about new businesses and ideas. The website is categorized into more than a 100,000 messaging boards known as subreddits.
One of the most famous categories on the website is “Altcoin Discussions.” This is basically a messaging board specifically made for cryptocurrencies except for Bitcoin. It’s also a great medium to let everyone know about a new crypto coin, and you can do this under the announcement thread.
The announcement thread gives new ICOs a chance to introduce their new tokens to the readers. A good announcement includes a summary that’s easy for everyone to understand. This talks about the token, its purpose, including the support network backing the coin.
The summary of your token must also include details regarding the maximum limit of the coins, as well as an introduction to the development team working behind the concept. Whoever among the developers has experience on cryptocurrencies should be included in the advertisement. This is very important since a new token created by highly experienced developers is likely to do well when it comes to generating investor interest. All of this is important when promoting ICO on Reddit.
Creating a Subreddit for Your Token
To have a successful token sale, it’s important that you promote your ICO well. When it comes to this, the best thing that you can do when promoting your ICO on Reddit is to come up with a messaging board for your token.
The messaging board in Reddit is just like a company prospectus allowing developers and backers to be able to communicate all of the relevant news about the tokens. An active messaging board that’s regularly updated regarding coin development can help develop investor confidence and encourage support for the coin.
Some users can also spread the news within the alt coin communities. The website applies an algorithm that’s voting-based when it comes to advertising and those topics that have gained several up-votes are shown on top of the search results.
All this is very crucial when it comes to promoting an ICO on Reddit.
Engage with Your Reddit Audience
Another great way to attract your potential investors is to encourage queries from your audience. The progress of your token, as well as the development reports, can keep all your supporters on board. But what will really make your supporters turn into core believers is when they’re fully engaged with your developers.
Therefore, you should urge your supporters to learn more about your project and encourage them to ask questions about the token. You should make sure that you address all these questions immediately. This will give an impression to your supporters that you are really serious about the project.
You must also take into consideration all the suggestions and feedback are given by your users. Reddit’s crypto community is highly knowledgeable, and a lot of the users provide excellent advice when it comes to improving your token.
Criticisms must be dealt with a positive attitude. If you want people to invest their hard-earned money into your project, then you should be able to show them what makes your idea different and why it stands out from the rest.
There are lots of risks involved in paying Reddit to promote your ICO. Yet, this may also lead to tremendous rewards. There are some companies that would rather stick to actively engaging the community in their messaging boards, but others would prefer to pay to have the best marketing. Regardless of the approach that you want to take, there’s no doubt that advertising your ICO in Reddit is an important step to promoting your ICO.