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Factors to Be Consider While Promoting an ICO

amvanessajane profile image VanessaJane ・4 min read

ICO (Initial Coin Offering) is an innovative method of raising funds for startups to implement their cryptocurrency operations smoothly. It requires a well-versed marketing strategy to have an instant impact among investors. ICO offers an easier method when compared to the stringent regulations imposed by banks and venture capitalists.

Some Factors That Every Firm Must Keep in Mind Are

Verifying the validity of the token - Potential investors will look at the value addition offered by the token in the platform. Every firm must focus on the problems that they are going to solve in the industry through the token to make a big difference. This would enable it to convey its benefits. Since investors would have so many ICOs’ kept in their mind as alternatives, they can make their decision quickly by analyzing the tokens.

Developing an experienced team - It is important to hire well-versed professionals who can play a significant role in executing the project successfully. Disclose their backgrounds to the audience. As operations grow in scale, a firm can employ advisors to guide it ahead.

Disclose the project’s vision transparently - Since the existence of ICOs’ is being threatened by narrow-minded governments and regulatory authorities, it is essential to gain the trust of investors. Appropriate legal recognition will go a long way in creating transparency. Conducting events, conferences, Question and Answer sessions would help a firm to improve its public perception and get confidence from potential investors.

Smart contract development - It is a self-executing program that is critical for executing the operations. A poorly designed smart contract can lead to heavy losses for companies and investors. It should be tested regularly to find out any bugs in code. Regular audits can prevent attempts of hacking and increase the capacity of the server to withstand high loads.

Fix the details regarding the token sale - Changes in the terms and conditions of token sale can be done during the initial stages. Last-minute modifications just a few days before the official sale are not advisable as it can prove to be a huge surprise to investors. Sufficient effort must be devoted to the preparation of the whitepaper. Some investors will study the technical document in its entirety to understand the utility of the token, issues that the company is going to solve, the number of tokens, and the distribution plan.

Plan diligently ahead of the official launch of the token sale - Shortlist an official date and time that would be convenient to all investors across different time zones. Ensure that you curate your token with maximum value-addition. Provide multiple payment methods and comply with KYC/AML guidelines. Investors will have a close watch on the financial contribution made from the company’s side.

Determine your budget - Prepare a solid financial plan and have an emergency fund if things spiral out of control. An ICO advisor will help you to reduce superfluous expenses.

Related: How to Launch Your ICO: A Complete Guide

Aspects That Every Company Must Avoid During Promoting an ICO

Not following the law - Firms that do not comply with the rules and regulations established by governments and certified authorities can either lose their licence or may be forced to wind up their operations. Nations such as China and South Korea have banned ICOs. Social media platforms such as Facebook and Twitter have restricted advertisements related to new coin launches. A legal team with great knowledge of different markets can prevent the occurrence of such a crisis.

Absence of a marketing plan - Most of the ICOs’ do not fulfill their fund-raising targets because they are not marketed effectively. Once the token sale and whitepaper have been prepared, it is important to implement the marketing plan across different channels. There are many well-known and experienced ICO Marketing agencies that execute campaigns through social media networks and forums. They also provide influencer marketing, community management and public relations as part of their services.

Buying followers - Keeping fast growth as a motive, many ICOs’ that do not have many customers are buying followers on platforms such as Telegram. This tactic is used to build a sizable social media presence ahead of the official launch of the offer. It would ultimately lead to declining interest in the crypto community once they have spotted the manipulative tactics. More importance should be devoted towards value creation. Small investors can get tricked by the huge amount of followers on social media though most of them would be paid or even bots.

Engaging in illicit activities - A firm’s reputation would be spoiled if they aim at making a quick buck without delivering the promised services. Every company must openly disclose their operations, business objectives and the parties whom they work with. Similarly, manipulation of securities must be avoided at any cost.

Skewed mining structure - Investors can view an ICO with suspicion if it reserves a large amount of pre-minded tokens for themselves. This leads to a notion that the ICO wants to make short term financial gains and exit the market. Investors should study the distribution strategy of tokens as pre-mining occurs before the public sale of tokens. Inequality would be created as early investors will benefit more from the tokens than the investors in the later stages.

Follow all the above guidelines diligently for running your ICO marketing strategy successfully and achieving your business goals within a realistic timeframe.

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VanessaJane

@amvanessajane

VanessaJane is a Blockchain Consultant, been in the Software Development Industry for the last 4+ years.

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