How to Raise Funds by Launching Your Own Cryptocurrency? And How Complex Is It?

Cryptocurrency: Opening New Dimensions For Your Fundraising or Investing

I have been working with fundraising for the last 15 years almost now, having helped more than 650 companies successfully raise funds, thousands of projects, and listed several companies. And the improvements we made in the methods and effectiveness (not to mention the transparency), for how you can raise funds for your startup, idea, growth company, or pre-IPO, can now be taken even to a higher level. And made even better. I am not saying that I am right this time (well I do actually hehe), but I have been right before and the data points clearly in this direction.

Cryptocurrency has been spreading its wings in many industries and the financial markets for a long time now but recently, its prevalence in every industry is succulently being matched by its hype. Cryptocurrency a.k.a virtual currency or digital currency is something that can be used as a medium of exchange between groups and private individuals, amongst its other functionalities. As they are decentralized and have mostly little to no government regulations, they are alternate modes of value transfer, accumulation of assets, and sometimes even currencies, which are mostly used outside the borders of the monetary policy of states and governments.

How to ITO/ICO and why

“Although the price of bitcoin has partly rebounded after last week’s rout, the digital currency remains well off its April 13 high of nearly $65,000. In early trading on Monday bitcoin fetched $38,477, up 12% from the previous day, according to Coindesk.com. “ (CBS News May 24, 2021)

You can also read Malcolm Tan's books here: How to ICO/ITO in Singapore and DeFi The Latest Financial Phenomenon

Though multiple cryptocurrencies get launched almost every month, the leading cryptocurrencies are Bitcoin, roughly 8500 cryptocurrencies have been launched, and roughly 2500 are still “live”. For understanding how impactful it will be in the current scenario and knowing how you can actually excel at making smarter investments we need to understand the intricacies of cryptocurrency.

Cryptocurrencies are technologically based systems of coding used for encryption of sensitive data that are linked “block” to “block” and verified publicly (or privately for private blockchains) so that information stored is nearly immutable and extremely hard and costly to hack and reverse. Blockchain developers use advanced principles of computer engineering and mathematics to develop cryptographic protocols.

There are no banknotes in cryptocurrencies but there are coins or tokens (usually used interchangeably) used in cryptocurrency, and with many decimals (usually 18) to allow fractionalization.

The popularity of Bitcoin is the major reason why cryptocurrency has been associated with the word coin, although there are some other currencies too that have started using the word coin like Litecoin, the like, Dogecoin, etc. These cryptocurrencies, with enough adoption and trust, can be used as a replacement for government-issued fiat currencies such as the Euro, US Dollar, or Rupees. Coins usually do not provide any specific ability to redeem something of value against their issuers, except for their current market value which is what someone else is willing to pay to the sender at that point in time. Of course, the more liquidity there is in the markets, the more “accurate” the pricing that you can find on various pricing portals and exchanges will be.

Tokens provide certain usefulness to the user as they often enable “utilities” meaning products and/or services offered by the issuer, and therefore their objective is much more than a sheer store of value. In such use cases, they are much like e-commerce platforms. For example, if you bought an airline token, that token can probably be used to trade for seat upgrades and/or other perks associated with airline miles programs.

Generally, the Ethereum blockchain holds many such utility tokens as it was the first main “smart contract” blockchain, and initially the main “gateway coin” to acquire any newly issued utility token. Ethereum also has the largest fan-base and developer community, and thus most users in the ecosystem prefer Ethereum over other tokens.

However, the massive increase in the price of Ethereum has created increased costs, especially in the recent months in 2021, as the transactions and calculations use “gas-fees”, a cost correlated to the service you want to use and the speed that you want to specify for the network to verify your transaction.

What are the Benefits of Building Your Own Cryptocurrency?

“Because of their political independence and fundamentally impenetrable data security, cryptocurrency users enjoy benefits that are not available to users of traditional fiat currencies, such as the U.S. dollar, and the financial systems that support those currencies. For example, although the government can easily freeze or even confiscate a bank account under its jurisdiction, it is very difficult to do so with funds held in cryptocurrency — even if the owner is a citizen or legal resident. On the other hand, cryptocurrencies come with a multitude of risks and drawbacks, such as illiquidity and value volatility, that do not affect many fiat currencies. In addition, cryptocurrencies are often used to facilitate transactions in the gray and black markets, so many countries view them with distrust or animosity. And while some proponents portray cryptocurrencies as potentially lucrative alternative investments, few serious financial professionals consider them suitable for anything other than pure bargaining.” Empire Global

It’s really enticing to understand the advantages of having your own cryptocurrency. Crypto users enjoy benefits that are not associated with general fiat currencies due to their intrinsically high data security and no interference from any political party. Nevertheless, they come with certain risk factors and disadvantages as their value is highly volatile and they are not as liquid in nature as the established cryptocurrencies, but over time, especially if the technology or underlying promise is met and communicated, certain tokens can see an increase in value by massive multiples, that won’t and usually can’t happen with regular currencies, called “fiat” currencies, which are issued by central governments. Cryptocurrencies will be a boon to facilitate globalization if used wisely and with certain precautions to prevent their penetration and use on illegal markets.

To get started on trading on anything new it is always beneficial to know about the process of creating your own cryptocurrency. To launch your own cryptocurrency, you’d want to hire professionals who know about blockchain and cryptocurrency. Alternatively, you can bootstrap and attempt to learn from scratch about and from source code that has been already worked on before and can be edited and customized as per your requirements.

Many parameters will not be analyzed for integrating the software downloaded from the Internet, which will include optimizing the technical code and choosing the name and “ticker symbol” of the cryptocurrency being launched, for example. A lot of time will have to be spent understanding the smart contract. Another point that is essential to note is the unique private key system that cryptocurrency possesses to tighten the security and safety of crypto users.

In recent years, the technology has been so progressive that there are guidelines to create one’s own cryptocurrency even for beginners. The contributions by consensus algorithms, hashtags, and mining all available on the internet help you create your own cryptocurrency.

Once the initial steps have completely addressed the idea and requirements of the project, the problems that have to be tackled are met and communicated, and the criteria for your target audience have been set, now what next?

The further process includes the creation of a smart contract that lays the foundation of your project. Then, one would have to look into informing the public about the premise of the project, such as through a project White Paper and/or articles and PR released about the project. Next comes marketing and additional PR, and distribution of the tokens, and community building and engagement.

Any startup company in 2021 either already has or has thought about their own crypto strategy, and if you have not created yours yet, you should as your competitors surely are. This article is not meant to market or sell our services, but we at Technicorum have advised and incubated several projects, such as Kingswap, and have helped numerous crypto projects to fundraise and tokenize, and are currently working on launching several tokenized crypto projects as we speak. So think about what your crypto strategy can and should be and if you are ready to get your independence from regular, boring, and ineffective fundraising by practically “running your own economy and money supply” and if done correctly become independent from fundraising from business angels or VC:s.

You have to make sure that the interface is strong enough or else the entire hard work will be of no use. The owner of the cryptocurrency has to pay attention to the ICO/ITO/IEO/IDO as well. The ICO/ITO/IEO/IDO is the first and foremost offer of cryptocurrency that helps in attracting great deals on investments as an asset. So consider choosing a company that has expertise in carrying ICO/ITO/IEO/IDO raises. Technicorum has a team of experts that can definitely help your project to maximize its potential in fund-raising and also help in crafting a white paper.

So, the time might be ready for you to get started and if you need help, you know how to find us ;)

/ Daniel Daboczy, CEO Technicorum