ADN Insights: 5 Things Successful ICOs Have in Common
Many successful ICOs in history have shown similar qualities that future token sales can emulate. ADN highlights these in this blog.
When asked with the question, “What makes a successful ICO?” people would assume it’s all about the amount of money raised during the event period. After all, ICOs are also called token sales.
However, successful crypto companies go the extra mile. We at ADN took note of the practices that the majority of the most successful ICOs have done to ensure that they will get the necessary funding they need to further improve the blockchain industry.
1. They know how important hype is
Every successful ICO has understood how important hype is. In fact, no ICO would have reached the soft cap without any type of hype. For example, Ethereum received the hype that it needed because prior to that, most people only thought blockchain technology as a platform to facilitate peer-to-peer transactions. Ethereum doubled down on its branding, thereby getting all the hype it needed to reach its hard cap.
The same can be said about EOS, which subtly marketed itself as the blockchain that Ethereum fails to be. While Ethereum’s creator Vitalik Buterin expressed his doubts on EOS, it further gave the blockchain additional exposure. As the old adage goes, “bad publicity is still publicity.” Despite its current intrigues, EOS is still arguably the most successful ICO in terms of capital gained.
2. They don’t rely on hype
One of the most stellar examples of this is the popular messaging service Telegram, which has conducted a two-phase ICO in February and March 2018. Despite limiting its sale to accredited investors only, it has attained about $1.7 billion. This is because prior to its sale, it has already established itself as a reputable platform — something that is accomplished by grit and not by digital pyrotechnics. If Telegram wanted to gain as much funding as it wanted, it could have been more accommodating to other investors. But for its own reasons, Telegram did not go for that option.
To be sure, any ICO held by popular platforms like Telegram would generate a good amount of hype. But unlike projects like Ethereum, Tron, or EOS, Telegram already has solidified its reputation among the messaging industry. It has the numbers and the working product to prove it.
3. They do not make unnecessary promises
It has been over a decade since the world has forever been changed by cryptocurrencies and blockchain technology. Somehow, our markets have become more mature than they were a couple of years ago. And if there’s one thing that we know, it’s that there is only a thin line that separates a revolutionary project from a scam. And that line is the project’s ability to deliver according to its promise.
Many ICOs suffered in this area, including Ethereum and EOS, because they made promises which are hard to keep. For example, despite Ethereum’s promise of providing a more scalable platform than Bitcoin, it still deals with scalability issues up to this day. Bitcoin, on the other hand, was able to stay true to its promise of becoming the top cryptocurrency in terms of market capitalization. While we believe many other factors contributed to this result, the mere fact that Bitcoin was present before Ethereum is not one of these — we have already seen so many frontrunners outperformed by their new contenders. We believe that one factor is that Bitcoin focused only on what it can offer — an alternative payment method — and nothing else.
4. They have a feasible use case
For any cryptocurrency to have a value, people must first find a feasible use case for it before they even bother buying the asset and trading them. An asset should actually be utilized for an important product or service, or else it will just be another entry on CoinMarketCap (if it ever succeeds in getting listed on it).
This is easy for already-established platforms. But for virtually new projects that desperately need the funds so that they will be able to develop the platform, this is difficult to do. However, just because it is difficult doesn’t mean it is impossible to achieve.
To be able to do so, startups need to at least have a technical image of the project. A detailed whitepaper complete with sample codes and technical explanation is good. To back this up, project founders should take the time to engage in forums to display their knowledge on the topic.
5. They plan for the future
Aside from the detailed whitepaper and the sincere presence of project founders, investors also check for the company’s future plans. More often than not, they will wonder about the potential of each token that they will invest in. Every crypto company should know that more than the company’s success, investors will initially care more about the profit that they will make out of the ICO.
One good example is Binance Coin, which is now listed on crypto exchanges apart from Binance. Admittedly, one factor that made Binance Coin successful is the reputation of its mother exchange. However, Binance took it one notch higher by revealing its future plans and its method of ensuring a good coin economy. In its whitepaper, Binance hinted at its plans to create its own decentralized exchange, wherein Binance Coin will take a pivotal role as the gas to be spent, on top of being one of the chief cryptocurrencies available on it.
Noticed more of the common characteristics that successful ICOs have in common? Share them in the comment section. You may also click on the “👏” button on the left side of the screen if you found this post insightful. Put those hands together as many times as you like. Meanwhile, follow our official social media sites to learn more about ICOs, as well as how we at ADN can help assist you in your ICO.
