What to consider when creating an ICO

Over the years, Malta has built up a solid reputation as a leading jurisdiction for iGaming, fintech, and financial services. With these foundations already in place, it was a matter of natural progression for it to become the new global home for ICOs.

In May of this year, the Maltese government announced three new acts that would seek to provide legal clarity and regulatory certainty for ICOs, virtual currencies, and blockchain technology and service providers. The move has been welcomed by the international cryptocurrency community and it has now put Malta well and truly on the map when it comes to those looking for a suitable place to launch an ICO. But what else should you consider before getting the ball rolling?

Create a whitepaper

You can have the best idea, the best team, and the best planning in the world, but if you don’t have a truly excellent whitepaper then your project is doomed before it has even started. As well as now being a legal requirement, the whitepaper will allow you to clearly and succinctly communicate your concept to those that are interested in investing in it. This is not a document that you can write yourself in a few hours, you need to enlist the help of a professional to ensure that not only do you include all of the required information but that you also tick all of the regulatory boxes. The document should include what problem the ICO offers a solution to, the vision, what the course of action will be, business issues, a full description of the product, and how it will be marketed. If the whitepaper doesn’t answer every question that potential investor might have, then it isn’t doing its job properly.

Consider ancillary services

Setting up an ICO is not just creating a whitepaper, advertising it on Reddit and then waiting for the funds to roll in- you need to consider things such as bank accounts, tax implications, company registration, legal advice, and more. For these issues, you need to enlist the help of a specialist within the jurisdiction the ICO will be set up in. E&S Group can offer you step by step assistance from A to Z.

Tokenomics

Having a great idea is just one part of the puzzle- knowing the intricate ins and outs of how the ecosystem will work is something a little bit complex. Having the correct tokenomics can make all the difference between a successful ICO and one that fails, so finding a suitable tokenomics advisor is a necessity. This skill set is not something that everyone can offer, but at E&S our team of financial experts, accountants, business advisors, and crypto specialists can guide you through the four main areas of consideration for creating the perfect ecosystem.

Attracting the right investors

Attracting the right investors is paramount to your success. Even the best ideas and projects will fail if they are not getting noticed by the right audience. There is a range of different ways that you can seek to publicise and market your ICO and knowing how to do it in a way which is effective and lucrative whilst still retaining reputability, is something that needs some professional input. From social media to specialist databases and PR to your marketing plan,

Are you legally compliant?

With new regulations due to come into force in Malta, adherence to the rules should be at the forefront of your business plan. Understanding EU requirements in terms of KYC and AML, as well as issues such as the classification of securities, is something that a specialist should be assisting you with. Ensuring that you are in full compliance with all applicable laws, rules, and regulations will save you many problems in the future, as well as enhance your credibility on the market.

Whilst the ICO sector is only a couple of years old, the professionals at E&S have already amassed a wealth of hands-on experience in planning, developing, executing, and marketing compliant and successful ICOs. Why not contact us today to see how we can give you and your project the boost that it needs?

 

If you have any questions in relation to ICOs, please contact us on [email protected]