Hello everybody, we hope all of you are having a good time during the holidays! We are bringing a few details in front of everyone and we’ll try to make things a little bit clear for a few matters like Investors Confidence.
The Importance Of ICOs Building Investor Confidence
Though the crypto market has been tumultuous as of recent days, the world of ICOs and crypto innovation is still important. It’s sure to continue growing in the future, as more companies begin to identify the power of Blockchain and crypto, and begin investing in their own projects.
To compete with large companies who are working in the crypto space, ICOs, particularly those from smaller start-ups, must build investor confidence. This is critically important for a number of reasons.
ICOs Often Fail, Which Makes Investors Nervous
About half of all ICOs that launched in 2017 have failed, and many ICOs were also purported to be scams — built to take advantage of the crypto frenzy that gripped the world in late 2017 and early 2018.
This means that the average investor is likely to stay away from a new ICO, even for a promising company — because they may have heard negative things about ICOs. If you were told that an investment you were making had a 50% chance of failing, you’d be nervous, too!
To avoid this, ICOs need to build investor confidence by being more transparent, and be more clear about their business model, the returns that investors can expect when investing, and by being more realistic about the potential success they can expect.
Can AML And KYC Help Make ICOs More Appealing To Investors?
One of the other ways that ICOs may be able to build investor confidence more effectively is by adopting Know Your Customer (KYC) and Anti Money Laundering (AML) regulations. These regulations are used by most modern financial institutions to help prevent fraud, and could help your business and your ICO seem more reputable, increasing investor confidence in your project.
Following AML and KYC also helps you build a better relationship with banks and other financial institutions. Legally, ICOs are not required to abide by KYC and AML (yet) but these companies are — so following these regulations can make your company a more attractive business prospect.
You’ll also benefit from enhanced public perceptions of your project — and, because ICOs will likely be required to abide by KYC and AML regulations in the future, you’ll have a head start on the competition.
Build Investor Confidence — And Make Sure Your ICO Is A Success!
In today’s crypto world, simply having an ICO is no longer enough. You need to prove the legitimacy of your business and your business model to attract investors — and the above tips can help you do just that. Get started now, and make sure your ICO is an unqualified success!
We are offering 1 month of Free KYC for all companies, read more here: https://verifer.io/kyc_1month_campaign .
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