In-Depth Guide on Launching Gambling ICO
It is axiomatic that ICOs (Initial Coin Offering) have become extremely popular since 2017. This sort of funding using cryptocurrencies can be a source of capital for startups and several are now jumping on the ICO option to grow. It is hardly possible to envisage the gambling industry without ICOs as they play a dominant role in the booming of this sector.
Although this form of crowdfunding can be a risky business as it has attracted scammers, this popular method can be a source of capital for young crypto gambling ventures. Here’s a complete guide on releasing ICO gambling projects for those who want to operate in this sector.
Understand How Token is Used
Any venture associated with the fundraising can use tokens. As ICO means the method to fundraise by selling tokens, these tokens relate to the platform for which the funds are raised. Three forms of the token can be used such as:
- App-coins: these tokens can be utilized on the platform for which the ICO is raising funds.
- Tokens allow the holders of property rights, dividend rights, and voting rights.
- A digital currency with another relationship to the platform in which the ICO is raising funds.
Do the advantages outweigh the disadvantages?
The first and foremost step is to ask if an ICO has any meaning in your gambling venture. Ask yourself whether this project will bring significant benefits to your business or not. Will an app-coin suit your plan? To get the right answer, it is important you decode the advantages and the drawbacks that ICOs bring to your gambling firm.
The main advantage is to access easily to investors. With this system, you don’t need to convince traditional investors to invest a considerable sum of money to start your business. Nonetheless, by opting for this new investment way, it is easier for startups to convince people to each invest a small amount of money.
In addition, the token can contribute to the creation of a community around the project because if the fundraiser arrives to convince a lot of people, these investors will boost an initial user base. This is a kind of marketing for the company’s growth. The last benefit for the EU casinos operating in the United Kingdom is the ability to sell the token in ICOs. This sale can be easy if it is listed on the major token exchanges.
One of the main disadvantages of starting at a gambling ICO is the higher risk of being scammed. Scammers, spammers, and empty hype are the common facts on the ICO market. Some of the ICOs are immature and unqualified so they are unable to provide value to investors. By investing in gambling ICOs, the investors and users do not run any legal risk in several countries. Only the fundraisers and the gambling operators are under legal laws.
Create your token by using ERC223
Since ERC223 is a superset of the ERC20 token standard, this former is the common platform to create tokens. As a matter of fact, ERC223 is the modern version of the standard ERC20 that provides more benefits to your business. By choosing this innovation, the users are able to hold their tokens in most ethereum wallets.
Additionally, exchanges can simply permit trading on the token. There is a plethora of open-source ICOs, app-coin, and smart contracts that codes are already available and can be customized for the fundraising’s ICO. Finally, this technology has already been utilized by several users. This means, not only can the developers be found quickly but also the investors who want to participate in the ICO can easily understand the token.
Marketing and public relations increases the business’s credibility
When marketing promotes the services’ transfer from the provider to the consumers, public relations are a kind of strategy to build the brand reputation. In gambling ICO, two methods to increase the reach and awareness of your brand are marketing and public relations.
Today, with the tight competition in this industry, you can easily find specialist marketing and public relations that can offer services for ICO fundraisers. Be careful to not only focus on technical and administrative sides as they can lead to a lower price of the token which can result in a decrease of your firm’s reputation.