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Five Important Tips To Help You Start A Successful ICO
While there is a vast clamor of ICOs seeking the attention of investors with different kind of elevator pitches that moves pretty dang fast, entrepreneurs and small business owners are being faced with the difficulty of making their ICOs stand out unique among others. This is because of every single day, the world of ICOs witnesses a release of new coin offerings, or a fresh ICO looking to get a strong entry into the market.
For example, there is a lot of competition in the cryptocurrency space and the only way to stay ahead of the game so that your business name and product achieve success is to use innovative and unique approaches.
Fortunately, following effective and well-planned strategies will not only provide you with more sophisticated ways to promote your ideas and gain solid backing but also start a successful ICO. But before we proceed, let’s discuss why most ICOs fail.
Three Reasons Why ICO Fail
A report by Coinschedule revealed that over 230 ICOs were launched in 2017 and over 700 ICOs have already be launched in 2018 with over US $18 billion raised. Many startups are using ICOs to eliminate the exhaustive and complicated process of raising funds and attracting investors looking for the project that will yield maximum profit.
Although we see different success stories of ICOs, it can have a higher failure rate which can lead to long and heartbreaking flop stories, and it’s due to the following reasons:
- Poor Brand Identity
- Impractical Budget and Objective
- Lack of reporting and Management
It is important you pay detailed attention to those three points listed above if you want your ICO to be standout and attract investors.
Five Tips to Help You Launch A Successful ICO
It’s very unfortunate that many start-ups fail and struggle to raise expected capital funds and that is because they did not put effective strategies into place at first. These five tips explained below would guide you in making your next ICO project successful:
- Build reputable, credible team and select advisors
The issue of trustworthiness is sadly a big obstacle when it comes to investing in ICOs. A recent article by Blockgeeks article disclosed that ICOs have a real problem with generating trust among investor as the unregulated nature of ICOs has made it attract a lot of scammers and dubious individuals. This has made many investors begin to ask for assurances before investing to ensure that their investments are going to be used the right way.
Hence, the need to make your ICO look legitimate has become of more importance. For your ICO to be successful you have to learn to gain the trust and confidence of investors and the easiest way to doing this is by putting a team of reputable and qualified team experts to judge the whitepaper, its claims and then endorse it. Also, make sure that your ICO looks legitimate by communicating with potential investors and answering all their questions satisfactorily.
- Create valuable project
Having assembled your team, you will need to discuss the values for your project. These include considering if you want your ICO to grow as quickly as possible or you want it to be part of crypto’s original philosophy of distributing wealth and gains among the many. For the former, you will need to set a minimum cap and ensure the ‘crowd’ participate, while for the latter, setting a maximum individual cap is vital so that any interested person with small amounts can participate in your ICO.
Successful ICO projects do not only integrate blockchain into their business, but also, they tend to provide a demo of how investments in their new tokens would solve real-world problems. Instead of just buying and selling their coins in exchange for other legal tenders and cryptocurrencies, they take a step further by offering backers real value which would create real demand eventually.
- Fabricate your prototype and launch your ICO with a story
There are many investors for whom a working prototype is a deciding factor, and that’s the reason it’s important to have a working prototype for your ICOs. People would only want to invest their money into what they see is working and not just a bunch of ideas.
Having gotten your prototype ready, the next thing you will need to focus on is your story and getting it out there. These days, with plenty of competitions all around it, isn’t just enough to have ideas or accurately describe the idea. What an ICO needs is a good story.
You need to let the public know where your idea did spring from and what your vision for the future. Investors would want to know the people behind the story of your ICO and what led you to this point. All these things are the context-setting particulars the experts point to as a key in building enthusiasm for an idea.
- Build an effective network around your ICO
Most start-ups fail when they get to the crowd funding stages, and the reason is the lack of an effective network. Networking properly can be a great benefit to your start-up, ICO, and company growth. The ICO roadshow model is all about networking, sharing capacities, building capacities, building relationships and acting. One way to build an effective network around your ICO is to offer attractive bonuses alongside your pre-sale.
- Promote your ICO effectively
Trying to achieve a successful ICO by applying effective promotion techniques can be the biggest step that you might ever consider. No matter how dedicated and hardworking your project team is if your ICO marketing and promotion isn’t enough high then you are bound to fail.
One easy way to promote your ICO effectively is by hiring well-experienced and knowledgeable professionals who had worked on the same platform before and achieved astounding success with other companies and projects. ICO promotion services will give your ICO much exposure using several sources.
Building and launching your ICO can be a daunting task as it requires a lot of hard work, dedication, and time. However, the idea of ICOs is not complex; it is just two entities exchanging assets with each other. Both parties do so in the hope that these assets will fetch them higher returns in future. ICO is similar to IPO (Initial Public Offering) but just that investors do not become shareholders after investing.
By following these five tips and working with a network of professionals who are experts in starting and launching successful ICOs and cryptocurrency to reach a common goal, you could make your ICO project to be a lot more successful and likely get picked up by influencers and reviewers.