Crypto for Startups

How to create the ultimate Ponzi Scheme and print money.

Photo by Rodion Kutsaiev on Unsplash

Do you like cash? Do you like scams? Do you like Ponzi schemes? Then looks like you like crypto also. Let’s build our crypto startup together from idea to funding.

Day 0: The Idea

Before we get started, we must come up with an idea. We won’t obsess too much over this step, because ideas are worth nothing, execution is all that matters.

Day 5: The Plan

Crypto startups tend to have high expenses due to the expensive nature of the blockchain. Before we get any real work done, we will make a pricing estimate and a business plan/model.

Day 20: Building the MVP

We quickly made our business plan in 2 weeks. Now, we want our crypto startup to explode, so we’ll need funding. We will build an MVP before we ask for funding so we have something to show to them.

1. Pick a consensus algorithm — A consensus algorithm is how network participants verify transactions and make them into blocks. Popular ones include PoW (proof of work) or PoS (proof of stake)
2. Get a blockchain — Now we can pick the blockchain based on the consensus algorithm we want in our application. Popular blockchains that support dApps are Ethereum, OpenChain, NEM, EOS, and Ripple.
3. Design the nodes — The nodes are the computers all connected to the blockchain. They are consumers and suppliers of the blockchains. Each node has a copy of the blockchain, and they use their computing power to mine blocks (validate transactions before they become blocks of the blockchain). When designing the nodes, we can set them to be private or public, choose on-premise or cloud hosting, and choose hardware and software details.
4. Create the architecture of the blockchain — Now this is the real meat of our app. This is the backend of the decentralized app where we define and program smart contracts that tell how our blockchain should work. We also create security rules for our nodes and how blocks should be created.
5. Integrate Key APIs — The users of our decentralized app will probably be using crypto wallets and crypto exchanges. We should also want to integrate Metamask into our decentralized app. For example, Transak is like Stripe, but for crypto.
6. Design the UI — Here, we can now design our UI in any front-end programming language.

Day 100 — Funding

It has been 100 days since we started this journey, and we are now finished with our MVP. We are now seeking funding. We can go to investors, or we can have an ICO (initial coin offering). This is equivalent to an IPO, but instead of selling shares, we sell tokens to shareholders.

When people buy into our ICO, they receive our tokens, they will usually get an established and stable cryptocurrency like Bitcoin or Ether. Once the funding is complete and the project launches, the tokens that people bought into our ICO become fractional shares of currency or become our own cryptocurrency.

1. Roadmap — You would want to show your future roadmap
2. White Paper Release — In the crypto industry, startups create a white paper that explains the project.
3. Team — You should also show a trustworthy and competent team.
4. Token — Once the messaging part is done, we should choose the token that people get when they buy into our ICO.

Types of Tokens:

• Utility — Grants access to a product or service, for example, your MVP. Dash2Trade is an example of this.
• Participation — Gives a right to vote or participate in the blockchain.
• Investment — Token-holders have a right to have a share of the dividends by a crypto company.
• Asset — Ownership of a token grants ownership of any asset.

Conclusion

We created our own crypto startup in 100 days. Of course, it will take longer than that in real life, but this can be used as a basic framework for creating one. Thank you for reading everyone, give some claps, share it with others, and cheers.