In recent months there has certainly been a downturn in the crypto market in terms of pricing where the major currencies and altcoins are concerned. This downturn though, has not stopped the flood of new ICOs coming into the market. This is already reached over $11 billion for the year.
Many projects think that launching an ICO is just as simple as starting a page for their ICO and deploying the smart contract, then just sitting back and reaping the rewards. This is simply not the case. There are many associated costs with launching an ICO which has seen the cost spiral as this method of capital generation increases in popularity.
To assess the true cost, we must look at the combination of factors which create the cost themselves.
This is one of the biggest associated costs with launching an ICO. It is also one which is continuing to rise. The CPC of running advertising for an ICO is through the roof and as we have seen lately, many major platforms are restricting access to ICO advertising. This is why we see huge chunks of budgets now allocated to marketing.
To have your ICO listed on one of the major listing agencies and receive attention is one major way to generate investments. This does not come cheap though with prices running up to 10BTC for some premium listing options with certain providers.
A Professional Dedicated Team
If you want to band together a professional and credible team which will be respected in the industry, it will not come for free. As the old saying goes, you get what you pay for. This is very true in terms of team members.
It is essential to hire a diverse team of technical, security, development, blockchain experts, and legal compliance to make sure your project is completely on the correct path. Many of these team members will insist on being paid retaining amounts at the very least. They are highly unlikely to settle for token rewards, especially in the current market climate.
Running an ICO from concept alone is often doomed for failure. Investors respect and require to see at least an MVP. These require often substantial investment to achieve. That being said, if you truly believe in the project and see a future behind it, it will be worth the investment.