This is a sequel and final part to an earlier article done with the same topic but tagged, ‘How to Flop an initial Coin Offering (ICO) – Part I.’ In the first part, some points were made about why a number of ICOs are failing in 2018 in comparison to 2017.
Some points examined for the reasons of ICO flops in the first part included, little or no marketing budget, wrong marketing strategy, laxity and shirking of responsibility on the part of core project team members etc.
Some other reasons why ICO projects are failing in 2018 are;
- Non-Disclosure of Team Members; Even in instances when team members had been disclosed, a number of ICO projects turned out to be scams, how much more in a situation when an ICO refuses to disclose the members of the management team. Crypto-investors want as much details on projects as possible and as such it is a given these days to have crypto-investors look out for team members as one of the primary requirements to invest.
The Blockchain space is maturing with many jurisdictional authorities being less hostile and friendlier towards the industry as such there is very little reason for ICO projects to plead anonymity especially when such projects seek to raise millions in funding from the community.
If you want to stay anonymous as a blockchain project, then you should go the way of Satoshi whereby your platform and tokens gain value by virtue of their own value proposition and not seek ICO funding because the game has changed.
- Not Attending Events; One way to get closer to the community and get known by relevant crypto-investors is to attend Blockchain and cryptocurrency events and conferences to familiarize the team and project with the ecosystem. This is increasingly becoming important because investors seem to be more comfortable with project teams that they have met in person and can to an extent vouch for their existence and even sometimes authenticity. It is more often a given that public sale will have a successful outcome when there is the backing of notable investors.
- Not Building Online Presence in Crypto Forums; It is imperative that from the get-go, the ICO project builds an online presence with well-known crypto-based social media and platforms such as Bitcoin Talk, Reddit, Telegram, Twitter, Discord, Slack (even though this has been set with some challenges in recent times), Steemit and even some notable groups on Facebook.
Team members should also be active participants on other crypto-website forums that discuss relevant crypto matters. This way, they get to build camaraderie and help the community to understand their project first-hand even before sales start – this is a sure way to build an army of backers even before the ICO gets launched.
- Ignoring Mainstream Media; In as much as the major focus is to raise cryptocurrencies to support your project, it is equally strategically important to do some marketing towards mainstream media outside of crypto-media. This way you get to convert a new wave of possibly excited newbies who might want to use your token sale as their first port of entry into the world of cryptocurrencies and Blockchain. It is also a known fact that new investors are likely to contribute more than already existing investors who might have developed investor-fatigue over time.
The points above are not the totality of why ICO projects do not turn out successfully, however they are very important points to consider if you are a team intending to raise capital for your project through the Initial Coin Offering (ICO) process. Other factors might be attributable to each ICO based on the make-up and peculiarity of individual projects.