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What you need to do and how much will it cost you to run a successful Ethereum ICO?

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What do I need to do and how much will it cost me to run a successful Ethereum ICO?

The Price of the ICO

In order to create a successful ICO you’ll need to spend money and time on the following things:

The whitepaper
: A good whitepaper must be done by the founders and reviewed by experts to perfect the idea. If your budget is limited, don’t spend money on the whitepaper and do it yourself.

The website of the company: Any decent startup will have a professional looking website to show off their vision, their goals and their plans. The quality of it depends on how much you pay.

When you run an ICO you want to cause the best possible impression to the future investors so you’ll have to spend at least CHF 8.000, up to CHF 15.000 because in that range the price-quality ratio is the highest.
The token Smart Contract: If you want to raise money, you’ll need an ERC20 compliant token. This is a token that is easily tradable on exchanges because implements common functionality like a transfer() function to move the token from an address to another.

Good Ethereum developers are scarce. It’s new technology that has been around for about 2 years where 1 year ago was almost unknown and the documentation is scarce. For this reason we are here for our goal.

People have to learn from a lot of different places which complicates the learning process, thus resulting in a very small amount of Smart Contract developers. My point is that you shouldn’t be surprised to see rates of 200.00 CHF per hour and above, it’s a small price for the possible millions of an ICO.

From our experience, for the creation of a custom ERC20 token, I would need about 2 weeks to write the code, test all the possible changes and run security audits.

Working full time 8 hours at that rate, 5 days a week will cost 8.000 CHF to finish your custom token. Remember that you don’t want to rush the process so 1 week is too low to deliver quality code. Give the developer time to guarantee the security of the contract.

Cost: 8'000.00 CHF / 16'000.00 CHF

The Crowdsale ICO Smart Contract: This is the program that will run the ICO to distribute tokens to investors in exchange for their ether. Because each startup is different and has different terms, this could get really complicated.

Therefore, to create a secure Crowdsale ICO Smart Contract with all the testing I would need about 2–3 weeks of development. At a rate of 200 CHF it will be about 16'000.00 CHF for this contract.

It really depends on how much conditions you want to apply to the ICO. Things like changing the rate of tokens per Ether, limiting the access to a whitelist of pre-registed individuals and adding security checks takes a good amount of time to get it right.

Cost: 16'000.00 CHF

Smart Contract audits: These contracts will handle real money so security is a must. It’s impossible to guarantee the complete security of a contract but there’re things like Smart Contract audits that will help you find the most suble vulnerabilities.

The price of a professional audit from a reputable company could cost as much as 50'000.00 CHF but you can get by with an audit from an experienced individual for about 13'000.00.
‘’ Smart contract code security is a serious issue and shouldn’t be taken lightly. An investor’s money could be put at stake in a smart contract, and a simple bug could make a significant investment disappear for no reason other than a lack of audit. ‘’
Marketing: Probably the most important step. Your ICO won’t get anywhere unless the curious investors notice it’s presence. That’s why you have to spend a lot of time and resources promoting your ICO in places like:

Social media: twitter, instagram, youtube, medium, google and facebook. You have to publish content habitually in all the possible platforms to inform your users about the progress of the application and everything about the ICO. Specially medium because it has a lot of viral potential.

If he works full time from monday to friday, that will be about 600 CHF per week. Which is roughly 2'400 CHF per month. Enough to have a create abundant content and manage those communication channels. Maybe 2 community managers if you feel like creating tons of content.

Legal Stuff: Your ICO needs a corporate entity for its legal structure. Therefore to better protect the ICO individuals from personal civil or criminal action, you need to incorporate and indemnify.

Merunas Grincalaitis
Ethereum expert
The difference between fiat money and digital currencies is that fiat money is issued by central banks, while issuers of digital currencies are decentralized.
Crypto Valley LLC
130 Old Street


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