The short answer to this question is that the cost of an ICO can fall between $100,000 to $500,000. However, the short answer does not provide any context for why the cost of an ICO launch may vary so significantly. It is important to understand that long answer to this question if you are working to launch an ICO. Otherwise, you may be tempted to write off launching your crypto before you have all the facts in front of you.
The ICO Launch Process
When blockchain startup founders are in need of funding, one attractive option available to them is launching an ICO. When successful, ICOs raise the kind of funds that allow these startups to turn their ideas into functional financial products.
But much like Initial Public Offering launches in the traditional financial marketplace, there are times when these efforts are less than successful. This is one of the primary reasons why it is important for blockchain startups to speak with attorneys experienced in non-traditional financial markets before preparing to launch an ICO. If you’re not adequately prepared, it may lead to otherwise preventable failure and even the collapse of a promising blockchain startup.
Blockchain Development, ICO Marketing Costs and Regulations
In order to have the best possible chance of success, a startup needs to have adequate capital available before launching an ICO. It can be overwhelming to consider that a launch may cost as much as $500,000. However, not every launch is so expensive. Many can prove to be successful with a base cost closer to $100,000. A host of variables plays in to the ultimate calculus of how much a fruitful ICO launch will cost.
Some of the upfront costs are internal. It is imperative that your company has carefully managed the blockchain development process. Development, platform audits, website creation, social media strategy and all other internal elements of launching your actual product take time and they take money. Just how much money these internal processes will take depends on the current state of your research and development and how nuanced any work left to be done promises to be.
In addition, there are significant ICO marketing costs to consider. If no one knows what your product is or why they need to invest in it, your launch will inevitably be a bust. In addition, you will need to incur some legal and regulatory fees. Launching without ensuring that you have met all legal burdens is a recipe for disaster and potentially for liability.
ICO Legal Advice from Experienced Crypto Lawyers
The process of launching an ICO can be overwhelming. However, it is important to remember that your startup does not need to navigate this process alone and seeking out ICO legal advice is well worth your time. The team at LawTrades has both extensive experience with startups generally and with blockchain startups specifically. We have aided over 5,000 startup companies with matters of financing, formation and compliance. If you have questions about launching an ICO, please consider reaching out. We are eager to help ensure, in affordable and efficient ways, that your launch is as successful as it can possibly be.