Create Ethereum Crowdsale Smart Contract Without developers
Despite the fact that 6 years have passed since the first ICO in cryptocurrency, there are still some difficulties with terminology. Let's try to figure out what Ethereum Crowdsale Smart Contract is and what it’s for.
Today, Crowdsale is used by many companies in order to try to avoid legal requirements related to any form of sale of securities. If we compare Crowdsale and ICO, then we can say that in a certain sense, crowdfunding is more like an analogue of the Crowdsale, and ICO has more in common with the initial public offering. It should be noted that, for example, the US Securities Act extends its scope to the ICO, but not to the Crowdsale.
What is Crowdsale?
In simple terms, this is a smart contract for ICO.
By and large, ICO can be considered as an analogue of the IPO (initial public offering of shares), and a Crowdsale - as a parallel of crowdfunding.
Almost all ICOs are conducted using smart contracts. The benefits of holding an ICO on a smart contract are obvious to the investor. A smart contract is an open source program that anyone with programming skills can verify. If the smart contract is made without errors, then the investor can be sure that he will receive his share in the release of tokens. In most cases, an ICO smart contract is held on the Ethereum platform.
But alternatives of creating an Ethereum ICO Contract have long existed. The main competitive platform on the modern cryptocurrency market is the MyWish company. The advantages of which are the ease of creation and reasonable price. The big plus is that you can choose from 5 popular blockchains to create your own ICO Crowdsale.
So ICO consists of two smart contracts:
- Token Contract
- Crowdsale contract
These, and other contracts you can create and run on the MyWish platform with zero coding skills. Just think how easy it is and try it yourself.
A Crowdsale contract is intended to distribute tokens among investors, team members and participants in the incentive bounty program. The contract scheme works very simply. You, acting as an investor, in the designated field for the purchase of tokens on the site of the selected ICO enter the planned amount of investment. In the same form, you will immediately see your account and equivalent in the tokens that you will receive by spending the selected amount. Then you copy the address of the wallet generated by the system and paste it into the field to send to your Ethereum wallet.
An important reminder, always check the amount of the GAS limit, otherwise, the transaction may be stuck for an indefinite period. After sending the payment, you will receive your tokens directly to the ETH wallet address.
CrowdSale at ICO - full description
Since its inception, blockchain technology has been widely used. Many interesting and useful projects are functioning on its basis, and new ones are constantly being released. To implement most of the ideas, impressive funding is required, which innovators try to attract even at early stages in various ways, including Crowdsale.
Crowdsale is a pre-sale of tokens, organized to attract collective investment in a new project before being placed on the ICO. During the Crowdsale, those who wish are invited to purchase tokens of the future project, and the proceeds go to its development and the holding of ICO.
You can create your own cryptocurrency on the blockchain platforms. These platforms offer the ability to develop unique tokens for any purpose, even for beginners, based on the blockchain standards. Only if you have the skills and knowledge of the code.
For the development team, selling tokens is a fairly easy way to launch an idea at the initial stage of its development, without a long search for a major investor. For investors, this is an opportunity to purchase tokens at the lowest price, as well as to receive additional bonuses from their purchases. Some projects provide for the payment of dividends to holders of tokens or the opportunity to use the services of the company.
The MyWish platform offers a service to create your own cryptocurrency without the need for a third party development team.
Behind any undertakings is the hard work of the startup team, the costs of developing and maintaining software functionality, conducting research and marketing activities. All of this requires funding, which is often not affordable for the development team. Therefore, the main goal of a Crowdsale is to attract collective funding to a new project to support its entry into the market.
Create a smart contract for ICO
In this article, we will show how to create an uncomplicated smart contract for an ICO, in particular, for a Crowdsale.
In simple terms, the user sends esters to the address of the contract, and in return receives a certain number of tokens. In the article, you will not read about the ways of advertising and promotion of your ICO, only the technical part.
So, suppose that there is one or several people, they have a good idea or even a product at the initial stage of readiness and they want to apply it. And for this you need funding. They create a website with a description of their ideas, create Whitepaper and decide to hold an ICO to attract finance.
In the world of classical finance, raising capital looks a little different. If you have an idea or a product, you need finances, then in order to attract them, you will have to uphill the thresholds of so-called venture investors.
There are stages in the ICO world.
Pre-ICO - this stage is needed in order to understand whether someone needs your token and your idea. For example, you decide that on Pre-ICO to sell 30% of all your tokens at a lower price. After this stage, you understand that there are few buyers, no one needs your token, and you need to either fold the fishing rods, or change your idea, conduct additional advertising, and so on. Or maybe you will be lucky - all your tokens will be sold, your idea will be necessary for everyone and it may even happen that you will immediately attract a large base of investors and you will not need to carry out the next stages of ICO.
Also at this stage, you can make some restrictions, for example, only a narrow circle of people can participate, or set a limit on the minimum transaction, for example, at least 5 ETH.
ICO - at this stage, all users without restrictions will be able to buy your tokens at a regular price. You can program some bonuses and discounts, affiliate programs and so on.
Bounty / Post ICO - at this stage you encourage users who have advertised your ICO. For example, major users on Bitcointalk, or Twitter and so on.
Under each stage, a separate smart contract is created, which interacts with your token's smart contract already filled into the blockchain before all these stages.
ICO smart contract
There are many options for a contract for ICO. Restrictions on the time, on the issue, the reservation of a part of the tokens to the development team, the conditions for achieving the levels of Hard Cap and Soft Cap, the freezing of purchased tokens until the completion of the ICO and others.
As we already wrote, for each stage of ICO a contract is created, and in the following, we put everything in one: here ERC20 itself is a token and a sale function.
How to create your first Crowdsale contract
If the above theory seemed frightening, do not write off to look for a performer for this business. After all, if you have a dream project, then it's time to convert the idea into a living working product.
The first idea that comes to mind of any project creator is to develop a contract with the project’s own resources. However, in the absence of experience, this approach is extremely risky. The fact is that the Ethereum network and the Solidity programming language have a number of major differences from traditional programming.
There are many examples of the loss or freezing of tens of millions of dollars due to the obvious mistakes made by the developer. Therefore, this approach in view of the high risks is not justified and will not be considered in this article.
So to create an Ethereum Crowdsale Smart Contract, you will need 0 programming knowledge and 15 min of your personal time. When analyzing most of the ICOs conducted, most of them do not provide data on the ICO contract and token. Do not make such typical mistakes. There are important customizable contract’s parameters which you will need to come up and enter:
- start and end dates of ICO;
- soft cap and hard cap - lower and upper limits for collecting;
- token name and symbol;
- total number of tokens;
- cold wallet — the address of the wallet to which funds raised from the Crowdsale will be transferred;
- bonus tokens — will the Crowdsale contract give bonuses for the period, the purchase amount and the currently collected ETH number;
Using these basic data, you can easily create and configure a smart contract yourself without the help of developers. MyWish gives many people the opportunity to start their own token sale by themselves. Now you can start your first ICO yourself using MyWish’s Crowdsale contract. You can also be confident in the security of your project since each part of the template is verified by a strong development team.