The new world of cryptocurrencies and Blockchain is rapidly accelerating and has already passed $100billion in market capitalisation. ICOs (or Token Sales) now outstrip traditional Venture Capital funding, and this new Capital Market Economy is proving more and more popular with technology orientated entrepreneurs seeking to fund new businesses, many of which would fail to raise money in the VC sector.

With the introduction of regulation, raising capital via cryptocurrencies will become even more complex than it is already.

The Chainstarter approach has been deliberately crafted to be compliant with whatever regulation may come along, and we are the first platform of our kind to offer full, multi-currency KYC and AML compliance to entrepreneurs who wish to avoid falling foul of regulation.

Chainstarter helps you to navigate this world of digital assets and the newly emerging decentralised economy. Unlike many platforms, we go to great lengths to help our clients understand the crypto economics, the impact of regulation and how to structure a Token Sale campaign for maximum impact.

These are some of the major questions we are asked on a regular basis, however if you can’t find the answer to your question here, drop an email to our Senior ICO Advisor Obe Ayton, who will be happy to help.

How do I work with Chainstarter?
Get in touch via email or fill out the form to introduce your project to us. We will then discuss your project with you and decide how best to approach it.
Can you write my White Paper for me?
Sorry — No. If you don’t already have a fully formed concept with a business case and White Paper, you probably shouldn’t be considering a Token Sale until you do.
What is a token sale?
A Token Sale, Initial Coin Offering, Crowdsale or Crypto Crowdfunding are terms used by the Blockchain community to describe issuing a crypto asset or “Tokens” to an audience of interested parties who will support your project by funding it with a variety of cryptocurrencies such as Bitcoin or Ethereum. In some instances, you may even be able to receive fiat currencies.
What is an Ethereum ERC20 Token?
Ethereum is a decentralised Blockchain that was designed to process transactions to pass the value of the token between one or more people. The process can be automated, and any asset, product or value can be tokenised to create a new type of digital asset. Even an idea or creative concept can be tokenised. ERC20 Tokens work as part of the Ethereum network.
What is a Smart Contract?
A Smart Contract is an automated and immutable agreement between any number of parties to effect transactions. Like ERC20 tokens and Bitcoin, it operates on Blockchain technology. Once written and agreed it cannot be changed, other than by overwriting the original contract, which is an extremely difficult and often expensive process.
Which Ethereum Wallets can my Investors use?
Because of the way our Smart Contracts are written they can use ANY wallet – including any exchange wallet. ChainStarter is currently the only platform able to provide this service.
How do I reach my audience?
When reaching out to the crypto community, content is King. You will need a well thought out and well executed media campaign, including, but not limited to:

An ICO website that clearly articulates the background of your project and the details of your campaign (time, date, how to get involved)

A Social Media strategy – covering the primary channels: Facebook, LinkedIn, Twitter, Slack, Telegram, Reddit, STEEM etc.

PR support

Articles and announcements that inform and keep your audience informed about your project

Content – Videos, podcasts and interviews of the founders explaining the project An advertising & PR budget of not less than $25,000

How much time do I need for my Token Sale?
Running a Token Sale is not for the faint hearted, and you will need to be prepared for many weeks of eighteen-hour days and a great deal of hard work. Typically, you will need six to twelve weeks to do a good job on any ICO campaign. This will be longer if you are seeking preliminary or development funding via a closed pre-sale.

This will also depend on how large or experienced your team
is and what content and assets you already have in place, for example, a media team, credible White Paper and Business Plan.

What else is involved?
A Token Sale has many complex moving parts which all need to be orchestrated and coordinated between several parties.

Most importantly, your Customer Services team will need to be operational 24/7, as Token Sales do not recognise your time zone! The crypto community will have questions which need answering. This is particularly true during the period of the sale itself, and your ability to respond quickly and appropriately to an email, Social Media or Slack channel question could well mean the difference between an investor taking part in your sale or not.

Finally, your crypto economics must be sound and the input parameters for the Smart Contracts must be bullet proof.

Who is my audience?
There are several groups of crypto enthusiasts that support various projects and may want to buy your Tokens:

They all have different reasons for making their purchases.

Crypto Traders – Savvy investors who may see longer term value in your proposition.

Crypto Whales – People who buy large quantities of Tokens but who may dump them for whatever profit they can get as soon as your token starts trading on an exchange, in order to move on to ‘The next big thing’.

The Crowd – These are the people, usually smaller contributors, who will use or support your product or service.

First Timers – People new to crypto who may be engaged by your proposition but who currently not engaged in cryptocurrencies. This group require a degree of education, but often remain loyal to your Token as it was their introduction to crypto.
Institutional Investors

Banks, Investment Funds and other regulated institutions who see value in both your business idea and your Token value over the medium to long term. If you are seeking to attract this type of investment your Token Sale must be fully compliant with regulation or legislation in force in any jurisdiction where you are seeking to operate.

Why do I need Customer Services?

Token Sales reach a lot of people, all over the world, who have many questions and will require information and help. Chainstarter supports the Token Sale process and can provide you with the relevant and appropriate answers to the “where are my Tokens?” questions when the sale is closed, but only you can communicate with your investors once the campaign starts and the ICO is live.

How do I avoid scammers?
Our API & Widgets are designed to be as robust as they can possibly be. For communication via your website & social channels your Customer Services team will need to be on the ball 24/7 to remove scammers and phishing posts. We cannot stress this enough. Even the smallest ICOs have fallen foul of scammers, who will pose as ChatBots to post fake promotions in your Slack, Twitter and FaceBook channels. You will need to monitor these vigorously.
How much will my ICO cost?
Your budget will have a significant impact on the amount of time you need to put into your ICO. There are a number of platforms that will tell you that a minimum of $200,000 on marketing is required, with some asking twice as much to run your campaign.

If you have a dedicated and experienced marketing team, a successful ICO can be delivered for less than $50,000, and depending on your funding requirements, as little as $25,000.

What about regulation?
Whether or not your project falls within a regulatory framework or key legislation depends largely on the utility of your token.

If your Token is offering a return to investors, a dividend or an equity in your business, or something else of value, this will undoubtedly require further consideration and research.

The only time it is not necessary to consider regulation is where your token is sold with no prospect of a return for the investor, such as the setting up of a Foundation or where the token represents the value proposition in and of itself.

What is the difference between an ICO and an IPO?
An Initial Coin Offering is similar to an IPO in although the mechanics are very different.

And IPO is an offering of a regulated security or ‘Share’ in your business through a regulated exchange to registered and vetted investors. Investment is received in traditional or ‘fiat’ currencies and can be banked and spent in the usual way in accordance with the use of funds set out in the investment prospectus.

An ICO is offered direct to the crypto community specifically. Technically speaking, anyone holding cryptocurrency can take part in your ICO, and because funds are generally received
in cryptocurrencies you must then have a facility in place to convert cryptocurrency to fiat currency or make the cryptocurrency fungible in some other way in order to use the funds to develop your business.

How do I convert my sale proceeds from Crypto to Fiat?
Many successful ICOs operate on the basis that their teams and suppliers are paid directly in cryptocurrency, such as Ethereum, avoiding the need to convert large sums of crypto into USD, GBP, EUR or other currencies.

If you are a truly Blockchain focused business, this will be your ideal method of operation – it’s true to the ethos of Blockchain.

If you need to convert crypto to fiat (or ‘Cash Out’ as it is referred to among the community), many exchanges now offer corporate accounts which, with the proper level of KYC / AML on your application, can allow conversion and movement of quite large sums of fiat currency into mainstream Corporate banking.

How do I list my Token on Exchanges after the Token Sale?
Listing a new Token on exchanges can be tricky and can take some time. Chainstarter can advise you on the best approach to get listed and make initial introductions for you, however we cannot list your Tokens for you. Only you can negotiate this.
How do I make my Token sale secure?
This is a vital part of any Token Sale and it is important you protect your project and do not give too much information away on your ICO website and on other channels. ChainStarter is happy to advise on the various aspects of ICO security but we cannot warrant against security breaches in any way.
A Token Sale is about your Project not the Token
Remember – you want the crypto community to be interested in your project so it is important to talk about this, and not your Token. While the utility of the token is important, the future success of your project is what investors will buy in to.

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