Five Lessons for Token Issuers from the BitTorrent Token Sale
The recent success of the BitTorrent Token Sale has brought the spotlight right back into the Initial Coin Offering (ICO) industry. In a token sale that was reminiscent of the height of 2017, BitTorrent raised over $7 million in just 15 minutes. The astronomical demand for the BTT tokens should give new token issuers the confidence that retail investors have an appetite for ICOs, despite the current bear market.
The BitTorrent token sale offers an interesting case study for the next wave of token sales. On top of the 2017-like euphoria, the project had some solid fundamentals in place. Sure, there were a large number of critics that believed that BTT tokens were overpriced and offered no substantial utility within the ecosystem. However, the BTT token sale overcame all the criticism to become one of the most successful ICOs of 2019.
Token issuers can take away five important lessons from the BitTorrent token sale:
Importance of a Solid Product
Gone are the days when a simple whitepaper and website could coax investors to shell out their hard-earned BTC and ETH. The token issuer, BitTorrent, has an established product in place for years, and the newly-launched BTT tokens are a great way to tokenise its decentralised file-sharing protocol. The tokens can be used to enable faster downloads for people who wish to have access to files more easily. This solves a genuine problem for loyal BitTorrent users. In many ways, BitTorrent was more like a reverse ICO, leveraging the token sale model with an established product to generate capital. Token issuers with a good product, or at least a promising MVP, are the ones who will gain consumer trust in this bear market.
Effect of a Community Network
The BitTorrent ICO effectively harnessed the power of network effects to generate interest among a lot of people. The BitTorrent token sale brought together users of its own protocol, the extremely loyal TRON (the token is built on the TRON blockchain) community and the large global base of investors who use Binance (the token sale was on Binance Launchpad). This increased BitTorrent’s potential investor base and its overall value proposition. If you are a token issuer, you need to start thinking about leveraging your own network and partnering with businesses that allow you to attract more users to your project.
Effective Marketing
It may be stating the obvious, but marketing remains one of the key factors behind a successful ICO. TRON’s team, which acquired BitTorrent last year, are marketing geniuses and they effectively leveraged multiple channels to build a buzz around the BitTorrent token sale. Even post ICO, they continue to engage the community through monthly airdrops. In addition, TRON’s own community is one of the most visible crypto communities. At ICOMain.io, we have helped many token issuers with end-to-end growth strategies in the pre-sale, sale and post-sale stage. We have also built a range of products that help businesses manage their token sales simply and effectively.
Timely Exchange Listing
Through Binance Launchpad, BTT gained immediate access to a pool of global investors on Binance who were interested in getting their hands on the token. As a result, BTT token was up nearly 5 times the ICO price. As a token issuer, you cannot launch your token and figure out your exchange listing strategy later. You may have come across many tokens that did not move beyond decentralised exchanges such as IDEX. This can be detrimental to the future growth of any project. Exchange listing is a key component of any successful ICO and should be a part of your launch strategy. ICOMain.io has a strategic partnership with the regulated Gibraltar Blockchain Exchange (GBX) and we can help your token achieve the required standards to get listed on the exchange effectively.
Partnering with Established Players
Partnering with an exchange like Binance gave BitTorrent access to a highly experienced partner in the blockchain space. Token issuers can greatly increase their chances of success by partnering established businesses with a proven track record. ICOMain.io is a subsidiary of the Broctagon Fintech Group — a global financial conglomerate which offers world-class forex and blockchain solutions. Don’t hesitate to reach out to us to know more about our blockchain solutions for businesses!
About ICOMain.io:
ICOMain.io is a full-service solutions provider for all the things needed to complete a successful ICO. Our comprehensive solutions are designed for companies looking to tap into the immense potential of blockchain and launch their ICO in the most efficient manner possible. Our team comprises of seasoned experts who have a wealth of experience in advising ICOs and is complemented by our cutting-edge technology infrastructure. We are dedicated to understanding their clients’ needs who may come from a diverse range of industries. We are also the first sponsor firm for the Gibraltar Blockchain Exchange (GBX) that aims to be a world-leading, institutional-grade token sale platform and cryptocurrency exchange.
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