ICO Software - How To Build an App for your ICO?
The blockchain is an extreme example of a disruptive technology, shaking the fundamentals of many industries.
Fundraising is not an exception. It lets you create your own legit currency within a reasonable budget and use it to collect a round of investments for your company. One of our clients raised $16.5M this way.
But to gather the money during an ICO you need a medium - an app to control the process, ensure its safety and to simply show you where to transfer your brand new tokens.
How to approach this challenge? In delivering financial web apps, the L4A team has a few insights for you.
But… why would I need an app for my ICO?
Every step on the path of an ICO requires collecting and processing data on your investors. Currently, there are no ready solutions on the market that can do it for you in a safe and reasonable manner.
That’s why, in delivering our projects, we’d rather build custom solutions based on our L4A ICO process and adjusted to our clients’ individual needs and processes.
>> Check our post about ICO traps
So, where and when do you have to gather and process all this data?
Creating the Smart Contract, you might choose to embed your investors’ data in it.
Injecting the data into your Smart Contract is the simplest and easiest way to assign your tokens to investors. However, in most cases, we advise other methods due to a few key issues connected with this approach. Firstly, you have to list all wallets to be publicly accessible in your Smart Contract, and secondly, a single typo can result in a chain of unwanted complications.
During the Initial Coin Offering, you have to recognize your investors and collect data.
What do you need to deliver an ICO? You have to:
- Recognize a person who wants to invest in your currency
- Guide them through the Know Your Customer process
- Collect their payment
During Tokens Allocation, you have to know where to send your tokens and how many you should transfer.
To do that, at some point you have to:
- Collect the wallet addresses of your investors
- Transfer them your tokens
At L4A, we wrap it all up in one complex application which guides your investor through the whole process, from A to Z. Combining these features into one tool will increase the safety of their funds and improve their customer experience.
How does this look from the investors’ perspective?
Let’s imagine for a moment that we are launching a custom L4A Coin. Our marketing team lined up a queue of 500 people interested in acquiring some of the tokens for us.
We’ve prepared a Smart Contract, and now your tech team has the green light to begin the Initial Coin Offering.
1. Creating accounts
First of all, we need a way to invite our investors to join our system - let’s say, a simple email based login feature.
This gives you a few opportunities: for example, you can add a GAuth Authenticator to get an additional layer of security.
A password reset feature would be a nice addition. It is a common problem and you can be sure that your users will be hounding you to manually restore their passwords if you choose not to include it.
The next step is the Know Your Customer process. To simplify it, we can integrate the app with an external KYC solution which will protect you from fraud, assure legal compliance and verify the personal details of your investors to be sure that they are real people.
>> Check our post about ICO traps
3. The payment process
In the end, you have to guide your investors through the payment process.
There’s a number of tools you can choose to transfer funds, depending on which currencies you want to accept. At L4A, we’ve created our own custom tool to manage cryptocurrency transfers, but you could choose an external vendor, such as CoinPayments, to accept fiat currencies as well.
After you collect the money and get your users verified, you can ask them for the data required to finish allocation - what you should do with the tokens that they buy - and where to transfer your brand new coins.
Control over the ICO process
To give you full control over what’s happening in your ICO, we would recommend a custom dashboard. Giving you all the details on the process, easy access to the data and gathering all the necessary information in one place.
Of course, if you have your own experienced tech team, you probably can extract the data directly from the database without a custom front-end on your side.
The Initial Coin Offering, however, includes some customer service aspects. Which means that if you cannot put up a tech person who knows how to deal with investors, it would be a reasonable idea to build a simple solution for the marketing/customer service team.
It will save you lots of time if you let them solve the problems directly, without the additional involvement of the IT folks. As you will have a plenty to do on your own during the ICO.
Custom software solutions for an ICO
We believe that agility is the key to deliver a successful project and efficiently manage your resources. In practice, every ambitious ICO is different, as every IT team has a different skill set. That’s why, at L4A, instead of a complex out-of-the-box platform, we practice building solutions based on our custom blocks for various steps.
For example, we can build a central ICO Application for your investors, including integration with an external KYC verifier, and a unit which enables cryptocurrency payment. You want to create the Smart Contract for your cryptocurrency and deploy it on your own? No problem. We can augment your team throughout the rest of the process.
Or maybe you want us to create the Smart Contract and deal with all blockchain related matters, leaving the whole fundraising process to your side? This involves a more common technical skillset, and there’s a big chance that you can do it inhouse with your own team.
Tell us more about your project.
We will be happy to help.
Safety of your ICO
Dealing with sensitive data and finance, we can’t stress enough how important it is to ensure the safety of your software solutions during an ICO.
A leak of your investors’ personal data can open a path for phishing attacks. A leaky payment solution can transfer their funds to an attackers wallet, with no hope of getting them back.
An application supporting your ICO can be your best friend during the heat of fundraising. But if a third person finds a hole in it, it can quickly turn into a nightmare and an expensive problem to solve.
That’s why you have to be sure about the safety of your code. Triple-check it and make sure your team didn’t miss a thing.
Summary: Why should you need to build an app for your ICO?
As blockchain and web practitioners, we strongly recommend you to create a reliable ICO application for the purpose of your cryptocurrency launch. It is basically a container for the whole process. It gives you a good grip on what’s happening, helps to collect the required data and ensures a smooth process.
The main features of such a system have to include the ability to:
- Recognize investors
- Guide investors through the KYC process
- Collect payments
- Allocate tokens
You can extend it further with additional features to help you analyze the data and deliver a successful ICO tailored for your company.
Creating an app for your ICO makes sure it will be safe. A secure and firm solution will be a helpful ally during the hectic time of minting a new cryptocurrency.
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Let’s talk about your project.
The L4A development team has vast experience in delivering web and blockchain projects, including fintech solutions.
We can help you to create a secure and seamless Initial Coin Offering for your company.
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