Your 7 Steps to ICO.

I. Legal.

- Define the jurisdiction for your incorporation (however, ICO may be conducted without that, as in a case of DAO);

Here's a link to a table containing info on legality of Bitcoin by country or territory (bitcoin is a virtual currency or a token, therefore all other tokens are treated similarly to bitcoin): Legality of bitcoin by country or territory

- Develop Token Model (Economy) which wouldn't meet the requirements of Howey Test (The US Supreme Court case of SEC v Howey established the test for whether an arrangement involves a security):

1. An investment of money; 2. in a common enterprise; 3. with an expectation of profits predominantly from the efforts of others.

Here's the link to a legal paper explaining this issue in great details: https://www.coinbase.com/legal/securities-law-framework.pdf

II. Develop Token Economy.

Your Token must have a real utility as a mean of payment.

III. Prepare the White Paper.

It's like a business plan.

For example:

  • Geo Founders (USA, Nevada): On CoinSchedule; http://www.geofounders.com/GeoFoundersWhitePaper.pdf
  • Digital Developers Fund (DDF ): https://www.digitaldevelopersfund.com/wp-content/uploads/2017/07/Prospectus.pdf
  • VI. Develop and Test the Smart Contract.

    This contract is written on an object-oriented programming language (Solidity, developed by Vitalik Buterin) and it allows e-wallets to handle tokens across multiple interfaces.

    Here's a guide line on how to write this Contract: https://github.com/ethereum/EIPs/issues/20

    V. Mitigate Risks.

    1. To avoid errors in software: Use standard modules for smart contract development (for example OpenZeppelin https://openzeppelin.org/).

    2. To not allow any individual, founder, investor, or developer on a project having a full control of funds: we should hold funds in multi-signature wallets and employ escrow partners to hold the keys to the wallet.

    More on this topic see here: https://cryptoconsortium.github.io/CCSS/Details/

    VI. Raise Capital Structure.

    There are multiple questions we have to address, including:

    - What is the ratio between the supply of token offered to market at sale time and the supply preallocated to you?

    - How do we create a token distribution that is most advantageous for you?

    Here's a link to the article discussing this question in details: https://blog.coinfund.io/toward-more-equitable-token-sale-structures-a71db12c8aff

    VII. Marketing.

    - Community building; - Early adopters; - Full project details, founders and team disclosure (site, forums); - Establish the line of communication with tokens potential buyers (on Twitter and Telegram); - Articles, founders interviews, YouTube videos etc.

    Additional Actions

  • Tackle ICO technicalities: build an ICO site; define an ICO schedule (depends on Ethereum blocks); defend against hacker attacks
  • Establish relations with crypto-exchanges (www.bittrex.com; www.poloniex.com; www.hitbtc.com; www.cryptopia.nz; www.bitmex.com; www.bitfinex.com)
  • Open wallets: Ethereum Wallet: Ethereum Project Mist Wallet: GitHub - ethereum/mist: Mist. Browse and use Dapps on the Ethereum, Queue-it: www.queue-it.com
  • Know trading platforms: www.tradingview.com; www.coinigy.com; www.haasonline.com (bot/automation)
  • Track Crypto-news: www.bitcointalk.com; www.reddit.com/cryptocurrency; www.4chan.org/biz/
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