June 7, 2018

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 4soft 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 4soft ICO process and adjusted to our clients’ individual needs and processes.

The 4soft Initial Coin Offering process consists of 4 steps:
* Creating the Smart Contract
* The ICO
* Smart Contract Deployment
* Tokens Allocation
If you wish to learn more about these steps, along with some technical details, check out our previous post on how to deliver an ICO project.
>> 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 4soft, 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 4soft 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.

2. KYC

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 quickly and efficiently. This step is crucial in maintaining the integrity and security of the ICO, as it ensures that your investors are legitimate and that their funds come from lawful sources.

Payment and Investment

Once the investors are verified, the next step is to facilitate their investment. Integrating a secure payment gateway that supports multiple forms of payment – from traditional fiat currencies to various cryptocurrencies – will be essential. This allows your investors to make payments in a manner that's most convenient for them, and it's important for the app to record the transaction details accurately for future reference.

Tokens Distribution

After the investment is made, the ICO app must allocate tokens accordingly. This step involves updating the Smart Contract with the transaction details and ensuring that the correct amount of tokens is distributed to each investor's wallet. The process should be automated to avoid errors and ensure efficiency.

Post-ICO Support and Updates

Even after the ICO, the app should continue to serve as a platform for investors to access their investments, view transaction histories, and receive updates about the project. This ongoing support builds trust and credibility among your investor community.

In conclusion, an app for your ICO is more than just a tool for collecting funds. It's a comprehensive platform that manages the entire investment lifecycle, ensuring security, compliance, and a smooth experience for your investors. At 4soft, we understand the intricacies of ICOs and are equipped to deliver a customized solution that meets your project's unique requirements. Contact us today to start your ICO journey with a reliable technology partner at your side.

Remember, the success of your ICO doesn't just depend on the technology. It's also about trust, transparency, and the value that your project brings to the investors. An app developed by a knowledgeable team can be the bridge that connects your vision with the goals of your investors, leading to a successful fundraising campaign.

June 7, 2018