How Much Does a Legit ICO Cost?
The cryptocurrency industry has been flooded with ICOs in 2018. Funds raised this year have already doubled 2017 totals, and the trend shows no signs of stopping. However, this remarkable energy in the ICO space has attracted shady players who simply want to make money while the industry is hot. Many of these ICOs are of a very low quality, and many are scams outright. The question is: how much money does it cost to run a legitimate ICO? We’ll try to answer this question here.
Every ICO has inherent costs that must be paid if the ICO is to be successful in the long run. Platforms must be developed, lawyers must be consulted, marketing must be put in motion, and cybersecurity must be...secured. Let’s quickly look at how much these cost in 2018.
A good ICO will have a workable concept that solves a real world problem. It’s estimated that it takes anywhere from $10k to $75k to analyze competition, understand industry needs, and create a proof of concept. This process may take anywhere from a couple of weeks to several months, depending on the scale of the concept.
Preparation for the ICO
During this stage, the ICO needs to be organized and constructed. You must prove your case to your potential investors and community members. The technical foundation of your project must be laid. Timelines and conduct details need to be formally organized during this phase. Security groundwork should be laid.
This isn’t an exhaustive guide, and your project may require different actions. All told, ICOs frequently report that this phase costs $25k to $50k.
Legal, ICO, and Subsequent Development
Necessary legal services may cost anywhere from $5k to $200k, depending on the complexity of your project. It can cost up to $100k to launch an ICO on an existing platform like Ethereum. Following your ICO, early development can take any amount of money, though hopefully you will have raised sufficient funds at ICO to stop having to pay for these things “out of pocket”.
In the end, a small DIY ICO should cost at least $40k. Top tier ICOs with global attention will cost $500k and upwards. In the end, any amount you spend can bring in significant profits, if you develop properly and have proper ambitions. Many more ICOs will be conducted in 2018, and many will fail. Spend the money it takes to be one of the ones that survives and thrives!