Factors That Determine the Success of your ICO - Part 2
The idea of ICO’s was conceptualized by J.R. Willett. In 2013, he initiated the first ICO — Mastercoin which raised around 5,000 Bitcoins (which then amounted to $500,000). The ICO model, since then, became extremely popular. And since then people have constantly tried to understand what was needed to achieve success.
The things that make an ICO successful are the same things that lead to its downfall which means that these aren’t additional factors but, in fact, necessary ingredients for success. There cannot be enough emphasis on the need for proper Marketing, Branding and Community Building for a successful ICO.
Marketing and PR Strategies
- Blogging — Create a blog about your company and update new content regularly — more than once a week and keep the content fresh, engaging and relevant.
- Social Networks — Be an active member on social platforms — Facebook, Twitter, etc. Indulge your audience with regular posts, opinion talks, etc. Provide recaps or blurbs from previous media engagements.
- Articles on ICO Trackers — To gain traffic and investors’ attention, post articles about the project on ICO trackers and famous crypto-media. If there is information about your project on the Web, it makes the investors less skeptic.
- Telegram Channels — Almost all ICO investors refer to telegram channels. Buy advertisements in telegram-chats where people (hired or otherwise) will provide brilliant advertising to your project.
- Advertisements — YouTube is an excellent way to market your products. Standard marketing channels like Facebook, Google AdWords, etc.
- Commission — Existing or new investors can be attracted with commissions in case of attracting or bringing-in new investors.
- Press and Media — Public speaking events, seminars and other engagements like crypto-events are vital areas for marketing strategies. Founders and team members can speak at such meet ups to attract first (pre-sale) investors, new investors if not a new company, partners. It is also helpful in generation of trust amongst the public.
- Involve Institutional Investors — These are investors (crypto-funds) who invest in ICOs and can help in gaining more the 30% of the capital.
Branding, ICO or otherwise, is a very important marketing strategy. How your brand looks is very important. It helps the investor to make decisions about whether to invest or not. Representation of your brand, the logo, the website, the design, content, colour, fonts, visuals, layout, etc- talks about your company.
If even some of these are not appealing enough, it will make the potential investors skeptical about your capabilities to achieve the mentioned goals. People judge a book by its cover. It helps them determine what’s inside. Therefore it is important to invest some amount in the building of your brand and how it looks because it, quite literally, is the face of your company and your eligibility. It will help in establishing better connections and aid communication.
The fundamental difference between ICO’s and IPO’s (apart from tokens instead of shares) is that the ICO’s decentralized nature which eliminates regulators and gatekeepers. Hence making its credibility is questionable. Community building, here, rides in as the knight in shining armour.
Social Media engagement, blogging, and tools of indulgence and gaining trust are ways to build trust. Being active in the Blockchain community, the early ICO founders didn’t have to build trust or gain followers. But with the increasing number of ICO’s coming up in the market, the criminal cases are also increasing. Due to lack of gate keeping, fraudulent companies dupe investors, failing the trust placed in them. Therefore, relevant community building becomes an pillar imperative to success.