The average cost to develop an ICO project in Russia is hovering around $18,000 USD but the price can go down to as little as $1,500, according to a study that explores the market for such services. The hourly rate for a blockchain developer is averaging a little over $44, the authors found after surveying 60 companies.
Also read: Malta Tops Exchange-Based Crypto Trade, Russia Leads in OTC Volume
Elaborate Projects Can Reach $50,000 USD
If you’ve ever wondered how much it would cost to create a project to raise funds through an Initial Coin Offering (ICO), a Russian rating agency focused on the web development sector has prepared an estimate that you may find interesting. True, it’s based on what’s currently offered in Russia but in the global village, and especially in the crypto space, outsourcing shouldn’t be a problem.
According to the study conducted by Ratingratingov.ru, the development of an ICO project in Russia costs between 100,000 rubles (~$1,500) and 3.3 million rubles (~$50,000 USD), Insider Pro reported. The agency has contacted 60 companies working in the field to collect and summarize pricing and other data and listed the top 15 firms offering this type of services in the local market.
The researchers found that the average price tag for these orders, the blockchain and web development part, is 1.2 million rubles (almost $18,000), not counting marketing and legal expenses. At the same time, a blockchain programmer makes over 2,990 rubles (~$44 USD) an hour, a wage that far exceeds the remuneration of most Russian employees. The median monthly salary in the country is about 42,000 rubles, or $660 dollars.
The companies in the survey have been ranked using a formula that assesses the size and quality of their portfolio and the experience of their teams. The number of successful projects, team members, and years of market presence are all taken into account.
Size Matters When It Comes to ICO Development in Russia
The compiled data shows that size does matter in this business in Russia. The first two firms in the chart, Smartym Pro and Ruformat, each have between 30 and 50 employees and are operating since 2008 and 2012 respectively. The next two, Zerion and Axioma Group, have hired between 10 and 30 professionals and are in the market since 2016 and 2009.
Companies failing to meet a set of criteria, like those that do not specialize precisely in blockchain development and ICOs, don’t have a portfolio with linked projects published on their website, are not included in the shortlist prepared by the agency.
Ratingratingov’s, well, rating has been published after in July the Russian Association of Cryptocurrencies and Blockchain (RACIB) announced a whitelist of businesses offering crypto-related products and services. It is available on the association’s website.
RACIB considers crowdfunding through coin offerings a promising industry that can potentially bring substantial foreign capital to Russia. It has been pushing for the adoption of favorable regulations along its efforts to cleanse the sector of fraudulent enterprises. The Russian State Duma is expected to review the revamped draft crypto legislation during its fall session.
According to a recent study, the Russian Federation has hosted six of the top 100 ICO projects. Another report published earlier this year claims that startups with Russian participation have already raised $310 million USD.
What’s your opinion about the costs of developing an ICO project in Russia? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock, Ratingratingov.ru.
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