The 5 Steps to Launch an IDO — Complete Guide in 2023
In recent years, crowdfunding has become popular again due to its applications in the crypto world. Even though crypto fundraising has been a norm for many years, the sector went for a toss after some mechanisms became infamous for their natures, with almost nil regulation causing the demise of initial coin offerings (ICOs) and over-regulation taking a toll on initial exchange offerings (IEOs). Such events occurred in the aftermath of the ICO boom in 2017 when the mechanism was viewed as a savior to new entrepreneurial dreams. Later in 2019, IDOs (Initial DEX Offerings) had given promises of reviving the fundraising world’s hopes, and it has been greatly performing since then. Let us see the steps involved in launching an IDO for a business project.
1. Minting Tokens and Framing Tokenomics
The first step in creating an IDO is to mint/create the project’s native tokens and form the token economy, better known as tokenomics in the Web3 world. IDO tokens can be easily created using token standards such as ERC-20, where developers need to integrate the tokens’ characteristics. Tokenomics plays a vital role in deciding the project flow. You must consider factors such as predictability, profitability, sustainability, and stability, which should be listed on the project’s whitepaper.
2. Identifying the Target Audience
Deciding the token flow would give you an abstract on determining your target audience. While setting your audience, it is essential to look after investors who will stay with the project for a long time, as IDO projects need a community at least until they can establish their bases in Web3. While you can work to generate hype and interest, you must ensure that a large proportion of the community stays with you, no matter what happens externally.
3. Choosing the Blockchain Network
Today, almost all the blockchains support IDO fundraising, which necessitates the requirement to carefully look at the merits of each before scheduling your launch. You should also note that it is not essential to launch the project on the same blockchain as the IDO but note that if you are launching your tokens on a gas-intensive network, your users might face issues. You should also ensure that the network supports interoperability which can be accomplished through blockchain bridges.
4. Verify Your Host
IDO tokens can be launched from platforms called launchpads that have become popular in the DeFi world. Since it has only been a few years since IDOs first launched, there are only a few launchpads that are long-standing, while some others have been extensions of decentralized crypto exchanges. There are a lot of criteria to consider to choose a launchpad apart from its reputation, including marketing support, service fees, project history, and more.
5. Double Check Security and Documentation
After finishing the initial work for IDO token launch, it is important to check your tokens’ security and documentation. Both these factors play a massive role in making the campaign a huge success. As far as security is concerned, you can test the code for defects and troubleshoot them immediately. While checking the project’s documentation, it is necessary to check that all essential information a Web3 project requires is present in it.
Conclusion
While launching IDO tokens for your Web3 project might seem easy as steps, there is a lot of work involved inside that requires professional help. To acquire such support in a timely manner, it is recommended that you work with an experienced IDO token development company that has expertise in all aspects of creating and listing IDO tokens.
