Truztar on What It Really Costs to Raise and Launch a Successful ICO!
Well, Initial Coin Offering, ICO, Crowdsale, Token Sale, Initial Public Coin Offering, IPCO or whatever name you call it is an unregulated means of crowdfunding via cryptocurrency. The term is often confused with 'token sale' or crowdsale, which refers to a method of selling participation in an economy, giving investors access to the features of a particular project starting at a later date.
There are currently thousands if not tens to hundreds of thousands ICOs that have launched or preparing to launch, but we are yet to see which of these already launched ICOs have been successful so far. The term successful means ... are they really using the funds raised for the use of proceeds writing in their whitepapers? It's also unfortunate to see that most of these ICOs appear to be scams and have failed their early backers. We've also seen a few of them been successfully hacked and loss tens of millions of dollars, after all they told you it's blockchain and data security is topnotch.
Truztar 'our blockchain project' is a very early stage financial services startup that will allow people to trade cryptocurrency futures contracts. Futures contracts is a trading strategy where a buyer can buy an asset at a predefined price at a future date, and so as sellers. For example, the Bitcoin price is at 1BTC to 3,300USD at the time of writing this post. A buyer can forecast the price to fall to 1,000USD in the next 3 months. Whenever the price drops to such rate, the buyer's order would automatically be placed and same can be applied to a sell order. To put simple, a customer can automate his Truztar account to ... buy 1BTC at 1,000USD and sell at 5,000USD, and such customer can go to bed without worrying too much about charts and market speculations.
Since Truztar is still in its early days, we've managed to bootstrapped a few tens of thousands of dollars which has taken us to the stage we're today: working prototypes. We thought one of the reasons why tech startups choose to raise an ICO and not VC round is the ease of process without too much documentations, hustle and hassle from venture capital firms. But it was shocking to realize after talking to a few ICO services providers about the Truztar proposed ICO that the cost to launch an ICO could range from $100k upwards and for an ICO to be successful, the cost could double or sometimes triple. We ran to a few potential advisors on why is this cost so high and the reply we got was that, ... it takes a VC round to launch a successful ICO.
We love Truztar and we love what we do as there are tons of broad financial services to be introduced in the future. We wouldn't want to see our ideas behind Truztar to collapse. Thus, as you're reading this post, if you're into the FinTech industry or have any idea on how to support us or join our team, kindly leave your comment below and remember to up-vote our posts so that we can continue bootstrapping the Truztar project.