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ICO has gained immense popularity in the past few years. As per reports, in 2019, ICO raised more than $3.3 billion. The amount generated from Initial Coin Offering makes it a prominent tool for large enterprises and investors, including Microsoft. As a result, businesses are planning to create ICO and wondering about the cost to launch an ICO.
Do you belong to the same category? If yes, then read this blog. It will guide you through everything about the ICO token development cost and other factors associated with the cost estimation. So, let’s begin revealing everything one by one.
Overview of An ICO (Initial Coin Offering)
ICO or Initial Coin Offering is a process where investors get coins or tokens at a discounted price in ROI. Token creators further carry ICOs to boost capital for their businesses. If the ICOs run well in the crypto market, the investors get rewarded with amazing profits. ICO token development is highly unregulated, and there is no third-party involvement which is the best thing.
Also, investors are not bound to pay any amount in return, which is one of the major reasons ICO development services are in high demand nowadays. The number of profits generated from ICO smart contracts and others is rising at 2x speed.
Cost Breakdown: 7 Factors Affecting The Cost To Launch An ICO
Wondering – How much does it cost to launch an ICO successfully? Let’s walk through the major areas of an ICO to determine the required budget to successfully launch ICO or ERC Token development and launch process.
Expense |
Cost ($) |
Whitepaper |
$5,000 – $15,000 |
Website |
$10,000 – $20,000 |
Security Audit |
$10,000 – $50,000 |
Exchange Listing |
$5,000 – $1,000,000 |
Whitepaper |
$5,000 – $15,000 |
Blockchain Dev |
$5,000 – $15,000 |
Legal Expenses |
$50,000 |
Marketing |
10% – 20% of Funding Target |
1. ICO Cabinet
It is a mandatory area for user sign-up, verification, purchasing & managing ICO tokens for better distribution. KYC verification process verifies the customer’s residence & identity while eliminating all the legal risks associated. The basic cost to develop an ICO cost lies around $15,000.
It is a mandatory element of an ICO that cannot be ignored at any cost, so be careful. You can take the assistance of a leading organization to create a successful ICO cabinet within the desired budget.
2. Whitepapers
The next major factor affecting the cost of ICO development, i.e., whitepapers. The major aim of whitepapers is to showcase the product regarding how the token will be used. Based on the information, investors will further decide whether to invest in that particular ICO development project or not. The average white paper ICO development costs will be around $5,000 – $15,000. In case of a limited budget, you can create whitepapers on your own.
3. Website
Nowadays, all information is available on the internet, so the demand for mobile applications and websites is becoming increasingly popular. A business website represents the major idea of the project, which is why it has to be appealing, informative, and adaptive to the users. Also, you need to update content timely to keep your ICO website interactive and attract potential investors.
So, the basic cost to launch an ICO website will be around $10,000 – $20,000 and more, depending on the features, functionality, complexity, etc. If you plan to develop an ICO-based business website, it is advisable to avail yourself of assistance from a reliable organization.
4. Smart Contracts
When creating a smart contract, you must use the ERC20 token. As they are compliant and easy to use, they can be easily transferred from one wallet to another. So, to develop perfectly working smart contracts, you will have to hire dedicated developers. They will not only develop a perfectly working business website but also cross-check all the work characteristics to make it more accessible for the users.
All you have to do is decide on the features and characteristics required for a smart contract. The entire process might cost around $8,000 to $10,000, depending on the type of smart contract prepared.
5. Security Audits
As ICO website development will require a lot of transactions, they must feature strong security. If your business website or app does not contain the desired security, it won’t be able to attract the contributor’s attention. Even a minor error will cause a great loss that cannot be covered easily. This is why conducting a strong security audit is a must for business owners.
So, on average, a proper audit cost of ICO development might cost somewhere from $10,000 – $50,000. This is the cost to hire mobile app developers who are well-versed in mobile app development or web development.
6. ICO Token Marketing
Marketing is a strong asset to let businesses achieve success and profit while gaining strong brand visibility. The approach used to communicate an ICO to investors has an impact on future collaboration & market confidence. A well-planned marketing strategy and reasonable ICO marketing cost can provide an online activity focused on the right people.
Even if you have developed a perfect ICO-based website or application, it will be worthless if no one is aware. Therefore, it is advisable to invest your time in marketing as well. The process will cost around $10,000 to $30,000, depending on the type of marketing strategy adopted.
7. Post ICO Launch
Finally, the last step to increase the popularity of your ICO project is placing it on exchanges. The average ICO development costs vary from $30,000 – $50,000. Also, you can work on email marketing to send important information, including news, ICO links, new updates, ICO capabilities, and push notifications. Here, you will need the experts’ assistance.
So, when you avail of ICO development services, ask the professionals whether they will provide post-support or not. It will help you know the estimated budget required.
These are the seven major factors associated with the cost to launch an ICO. Now that you are well-versed with each of them make your ICO development plan while considering these factors. It will help you create a perfect budget without burning a hole in your pocket.
Major Challenges Businesses Encounter While Launching An ICO
Got an idea of the cost to launch an ICO? Ready to bring the ICO development process? Wait! Before you proceed, get well-versed with the challenges you might encounter to ensure that you do not stop in between the process.
# Challenge 1 – Explaining Investor’s Benefits
Convincing investors and justifying their benefits is one of the major challenges that businesses usually encounter while looking for someone to invest in their projects. But, convincing someone for such a huge investment is a challenging task. For that, you would require to ensure that you come with strong project documentation highlighting every aspect. Also, make sure your project holds a huge value in the real world; then, only the investors will be ready to spend their money on your project.
For better assistance, get in touch with a blockchain development company or cryptocurrency wallet development company where there are tech experts. They will resolve your concern and suggest the best ways to pitch the investors or get some funds for your ICO-based project.
#Challenge 2 – Securing ICO
In today’s time, Cybercrime has ruined all-scale business security. Even a small security breach and hoax can ruin the efforts and put the business at risk. This is where having a smart ICO token development security team is a must to secure your project. For that, you will have to implement the following things.
- Two-factor authentication
- SSL encryption
- Verify code and smart contract T&C
- Pre and post-ICO launch
To overcome the challenge of securing an ICO, you can seek professionals’ assistance. The security and testing will incorporate technologies that will ensure your ICO token’s high safety and security.
#Challenge 3 – Proving Your Business or Brand
As there is a huge list of growing entrances in the ICO market, it becomes really difficult for new business owners to grab the market’s attention. Proving your brand is non-fraudulent and outshining competitors is the major challenge here that every business owner encounters. With the number of fake ICOs’ running in the market, more investors have become aware of it and are well-versed with whom they want to invest or not.
Proving your brand is genuine, and non-fraudulent is a major task that will require time, effort, and cost, of course. In that case, developing a secure ICO token that will speak for itself and profit your business in the long term is better.
Every success can only be achieved after overcoming the challenges and leaving them behind. Agree? Well, the three challenges we’ve mentioned above are the major ones that almost every business owner encounters while working on ICO development. Now that you know the challenges and their solutions get into action and come up with a profit-driven project.
Summing Up!!!
The popularity of ICO is on the rise; therefore, the demand for ICO development is also increasing with 2x speed. As a result, businesses often search for the cost to launch an ICO. Considering businesses’ concerns on priority, we have mentioned all the major factors impacting ICO development costs. We hope you are pretty satisfied with this blog and found it helpful. If still, you need ICO token development services, it would be better to get in touch with the experts. They will guide you throughout the development process and help you come up with a better project.
Frequently Asked Questions
How Much Does ICO Development Cost?
The cost to launch an ICO begins from $25,000 and might go up to $60,000 and more depending on the type of ICO token developed. So, to get an exact cost estimation, prepare documentation highlighting everything about your ICO-based project. After analyzing the requirements, the experts will let you know the cost associated with ICO token development.
How Much Is Time Required To Launch An ICO?
The required time to launch an ICO completely depends on the type of ICO token developed. So first, you will have to share your ICO token development requirements with the experts, and then they will commit the exact time.
What Is An ICO Token?
ICOs or Initial Coin Offerings are cryptocurrencies used by businesses to raise capital. While using ICO trading platforms, investors can get cryptocurrency tokens in exchange for their monetary business investment.
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