Launching an ICO

April 25, 2017, 1:35 p.m. | Xenia Temchenko

In our previous article, we have described main pitfalls on a way to a successful ICO. Now we will focus on the technical side, describing tools and services that will help you to achieve your goal.

 

The topics we will cover:
  • Issuing an asset
  • Selling the asset to users
  • Allowing users to securely store and trade your asset
 
There are two different ways to create the tokens:
  • Collect the investments and then issue tokens, corresponding to the total amount of investments. It was chosen by Chronobank and Waves for their ICOs.
  • Issue more tokens than could be potentially sold, perform an ICO and then destroy the rest. TaaS has chosen this way.
 
The first case is applicable when you are using the Ambisafe Investor's Wallet to collect the investments. The second also allows selling your asset through a number of participating cryptocurrency exchanges. It could be a benefit for your investors, who will be able to use a familiar trading website to purchase ICO tokens. We will be glad to offer you our services for communication and negotiations with many exchanges if you choose the second option.
 
We will describe the most complex case when investments are collected using both: the Ambisafe Investor's Wallet and partner exchanges.
 
The first step will be issuing the asset, which will be purchased by your investors. To do this, please register at Ambisafe website and Master Wallet, following these instructions. At this stage, you will be the owner of the whole amount of tokens. Before you continue:
  • Add at least 2 more owners and require 2 confirmations for each operation in Master Wallet. This increases the security of your organisation. The requirement is enforced by a smart contract and cannot be skipped. 2 of 3 confirmation recommendation exists to prevent organisation lockout in case one of the owners loses the account password. We recommend setting a 3 of 5 keys scheme for production assets.
  • Make sure that password of every owner is stored securely and cannot be easily lost.
 
For the second step, you should purchase a license for Ambisafe Investor's Wallet. This is a web application, written using Python and Django. It could be installed on your server using bundled instructions by a skilled web developer of your choice. Ambisafe offers branding, customization, and secure server configuration services. The wallet requires following dependencies to function:
  • Ethereum node or Ambisafe Supernode SaaS subscription for communication with Ethereum blockchain.
  • Key-value storage or Ambisafe Keystore SaaS subscription for storing the encrypted Ethereum account containers with the highest reliability. Corruption or loss of these containers will lead to loss of control over purchased assets.
  • Ambisafe Keyserver SaaS subscription to accept Bitcoin as a payment method.
  • MySQL or PostgreSQL database for storing rest of the wallet data.
 
After installation and login to the wallet admin panel, you will see the address of token reserve. This address is controlled by the wallet backend. When users purchase your asset during the ICO they will get it from this address, so you should send a supply of tokens to this address using Master Wallet. At this stage, you should be able to logout, register a test account in the wallet and make a purchase of your asset. At Ambisafe we always set up a staging server that uses a non-valuable asset to make sure that everything looks and works perfect before the wallet goes to production and ICO is started.
 
The third step requires negotiations with exchanges to add your asset to the supported currencies list. Also, there are additional options, such as:
  • Configuring the trading backend to allow token purchase only from your account
  • Disabling withdrawal of your asset from exchange until ICO is finished
  • Adding bonuses for early participants
  • Starting the sale at the specified time
  • Announcing the sale in exchange's mailing list and notifications
 
When details are agreed, you should send a reserve of tokens to the deposit address of your account at the exchange, so that users will be able to purchase them during the ICO.
 
The fourth step is the easiest one. After the ICO is over you should destroy the unpurchased part of the tokens. This can be done by withdrawing to your Master Wallet cold storage address and using the Revoke command.