Stop Selling Coins, Start Giving Hopes
It seems everyone who considers oneself associated with the current crypto movement is stuck at the very phenomenon of tokens. We all are hanging out on the news of token sales, ICOs, regulation disputes, and on many other token-related topics so abundantly available now on the internet. Undoubtedly, a token as a smart contract is one of the most progressive inventions of the crypto era hinting at the rapidly approaching (at least many believe in it) fundamental transformations of everything where the internet is an integral part. It is exciting to assume how differently the new decentralized order of things can run if the crypto economics prevails. And tokens look like the only key able to unlock the door to the new brave world.
The dominating token-sale discourse is putting us quietly into a strict framework where the total tokenization seems a universal silver-bullet response to the challenges facing all blockchain-based projects. No alternatives are available.
Tokens just for tokens become an easy recognizable behavioral pattern of many crypto projects, unfortunately. Even the true leaders of the crypto movement are sometimes trapped by the everlasting discussions of how to make their tokens more valuable, let alone the numerous day-fly crypto figures dreaming of selling their tokens instantly for millions.
Do many crypto creators ask themselves whether people need their tokens as coins? What do their tokens promise to people as to humans, not as to traders, crypto speculators, and investors? What value is standing behind the coins?
There are several subject-related questions in “The ICO Handbook” by David Siegel. The questions to which every crypto project must find clear answers before offering tokens for sale:
Under what scenarios will people need the token?
What objective does the token accomplish?
Why is this token the best way to accomplish it?
Can the same job be done better in a different way?
The questions are worth considering at least because David collected $20M in 34 minutes for his project at the token sale. But make no mistake, he has found right answers to those questions beforehand.
The token is a perfect driver capable of delivering a valuable project idea to users. Participating in a token sale people should realize what value a crypto project can add to their lives by means of the distributed tokens. However, it is quite difficult to find out the very meaning of many tokens after their crowdsale.
Being focused on the speculative capabilities of their tokens many projects attract just crypto traders, the ones who pay almost no attention to the social or technological components of those projects. At the same time, such a policy can hardly incentivize a wide audience unfamiliar with the peculiarities of the crypto exchange market.
Once the end justifies the means, the means should never replace the end. Those projects that offer tokens as the end in themselves either have no social value at all or sacrifice it in favor of financial speculations. Both variants are miserable because the end goal is lost.
An apparent metaphor with tickets to a football game can be applied. Assume that some reseller is buying up as many tickets to a forthcoming football game as possible in advance being aware that the tickets’ price will inevitably grow just before the game. Such a method of earning easy money is simple and reliable. The bigger hype the more money can be earned in reselling. Nonetheless, the tickets themselves have almost no value. Just the football fans’ expectations regarding the game add real value to the tickets. And the greedy reseller should keep in mind that nobody pays even a penny for the tickets when the game is over or called off.
Perhaps only the time can set things right and the fittest projects will survive. Experience comes with practice and people are continuously training to smell empty shells from a mile away. There will surely be a moment when another useless crypto wallet gets nothing from its ICO.
But since a good nose for worthwhile crypto projects is barely inherent in an average person by default, the serious projects planning to reach their main objectives long after the crowdsale should apply some persuasive techniques making their tokens meaningful and desirable regardless of their coin nature.
Summarizing the questions of David Siegel in a single answer-idea, a token seller should offer a particular promise making sense for the future users. They should recognize the tokens as a piece of hope in solving their actual problems through the token seller’s project.
From the technological viewpoint, token as a smart contract is objectively too good to be replaced by any other blockchain instrument. Thus, the task comes to fixing such an instrumental utilitarian use of tokens instead of turning them into the end in themselves. In other words, tickets should always remain tickets without replacing the game.
Focusing on the functionality of tokens does not mean overloading them with numerous functions. Endow only one feature to your tokens, but make it absolutely clear and useful for your users. The simpler the better: users should grasp the idea of the token’s utility instantly understanding how it works and what objective is accomplished.
There must be a clear link between the token’s functionality and the final objective of your crypto project. Use FAQ section of your website to explain that link. Put your mind to create your whitepaper in such a promising manner as this brilliant Company has done.
The vast majority of people need solutions, not coins. Consider it and don’t forget that you are the master of your tokens to create them meeting users’ expectations.
So, stop selling just coins, offer people hope instead.