Estimating the Cost to Launch an ICO

ICO (Initial Coin Offerings) is one of the most preferred methods to raise funds for startups currently. Most of the ICO’s are launched from the USA and Singapore. ICO’s are started on platforms like Ethereum, EOS and Waves by coding through programming languages like Go, Node.js, and Stellar. An ICO involves 4 to 10 months of preparation and one month for launch and marketing

The Major Expenses to Incur to Launch a Successful ICO Are 

• ICO consultation - Getting in touch with ICO consultation agencies will help you to approach the project with greater preparation and confidence. An ICO consultancy helps you in different aspects like ICO planning, whitepaper drafting, token creation, token marketing, website developing, listing the ICO, and other post-launch activities. At least $8000 needs to be paid for an ICO consultation service by an ICO development company. 
• Blockchain development - A decentralized blockchain network is essential for carrying out the token creation process smoothly. It is important to have a clear idea of how the ecosystem works by creating an MVP (Minimum Viable Product) of the blockchain solution. Smart contract development would also be required for ensuring the automation of operations. There should be no loophole for any hacker to enter. It can cost around $10000. 
• Technology development - Technology development involves extensive planning and research into how the architecture and technology of your blockchain platform will work. It includes all the technical details, timeline of milestones in the development, tokenomics, and security frameworks. The estimated budget will be around $25000 to $50,000 depending on the complexity and scope of your project. A blockchain research scientist, a blockchain security engineer, and a blockchain architect would be required for executing the project. 
• ICO website creation - An intuitive website will act as the first point of communication for all the prospective investors related to your idea, token offering, and the whitepaper. It should be interactive, easy to navigate, hack-proof and SEO friendly. It must be capable of handling a large inflow of traffic when the ICO goes live or is officially launched. Website designing and development would involve minimum expenses of $10000. 
• ICO marketing - It is important to engage with your target audience to boost your following through social media posts, press releases, paid advertisements, and organizing events and conferences. It can be done either by an in-house team or hiring a leading marketing agency. Resources must be devoted to the most cost-efficient channels and mediums by closely monitoring the analytics for traffic to your landing page. A couple of managers need to be appointed for managing the bounty program, social media channels, and handling queries from the community. 
• Cryptocurrency wallet integration - It helps investors to store all the coins or tokens safely. Wallets can either be hot wallets (connected online) or cold wallets (operating offline without being connected to the Internet). The starting range for wallets will be around $8000. 
• Labour expenses - At least eight to 12 team members would be needed for working on an ICO. A business analyst, designers, frontend, backend developers, and quality analysts would be required. 
• Token listing charges - For listing the ICO token on the leading crypto exchange platforms can cost around millions of dollars since the industry has small, medium, and large cryptocurrency exchanges. 
• Investing in robust security measures - Since the costs of security breaches and hacks are extremely high, certain security measures like two-factor authentication, code verification, SSL encryption, jail login, anti-DDoS protection, and password-protected user access. Security audits can cost around $10000 to $50,000 depending on the complexity of the audit. 

Challenges to Be Faced by an ICO Development Company 

• Justifying the benefits offered to the potential investors - The firm needs to prove how their proposed token would move in the economy and the actual issues their blockchain-based decentralized solution would solve. The attention span of the investors is getting lower with each passing day as so many ICO’s are hitting the market regularly. Hence, your project needs to have real value backed up by a strong future. A lot of groundwork is needed before entering the market. 
• Showcasing yourself as a non-fraudulent brand - Many scam ICO’s have caused havoc in the market by swindling the funds of investors without any chance of recovery. This has led to investors becoming more careful and cautious. False promises that the value of the crypto coin will double in a few days should never be circulated. The team members involved in the execution of the project must be truly knowledgeable blockchain experts. The information contained in the whitepaper must be in-depth and complete in all aspects. 

Consider all the above-mentioned factors to launch a successful ICO. The cost to launch an ICO will range around $250,000 and can go up to $10,00,000. It depends on your funding target and the types of marketing channels used.