Five Ways to Prime your ICOs and STOs for Success in 2019
Despite the perception for 2018 as not the best year for token sales, we did see some quality projects going strong in a bear market last year. While naysayers were busy writing Initial Coin Offering (ICO) obituaries, businesses managed to rake in more capital from the ICO market in 2018 than in 2017. However, there was a significant shift in momentum. Investors were now taking more time and conducting due diligence to vet the projects ensuring that only the best ones got funded.
As we head into 2019, there is no doubt that token sales remain a fantastic fundraising mechanism for businesses. With the bear market weeding out the scam projects, there is a lot of institutional money waiting for the right projects. With Security Token Offerings (STOs), entrepreneurs have another regulated avenue to raise capital for their business. Here are five ways businesses can prime their ICOs and STOs for success in 2019:
Focus on the Basics
What is the vision of your business? Have you thought about a sustainable business model? Do you have an MVP in place? How about your go-to-market strategy? If you do not have answers to these questions, you perhaps need to go back to the drawing board and flesh out your business plan before launching a token sale. Launching an ICO does not mean that businesses have leeway to forget the basics. Business models and tokenomics especially come under more scrutiny in the ICO industry. Token promoters need to make sure that they have done the homework if they entrust users to part with their hard-earned money to fund a company so early in its lifecycle.
Make Regulations your Friend
We all know that regulations are a hard thing to get your head around, but it is something that you cannot escape in the real world. It is better to not get weighed down by regulations. Instead, think of regulations as part of your business plan in the cryptocurrency space. Legitimate projects need not worry about laws as these are only trying to protect investor interests. Work with a legal expert or team right from inception to ensure that you are compliant at every stage of the token sale process. With STOs coming in this year, regulations are likely to take center stage in the token universe. If your project is regulated and compliant, investors will be more comfortable while putting their money in your project. You will also protect yourself from unnecessary regulatory scrutiny down the line. A good legal team will also be able to identify the right jurisdiction for you to launch your token sale as countries such as Thailand and UAE are fast becoming hot destinations for regulated ICOs. This will also be important from a taxation standpoint.
Build a User-First Mindset
Many community leaders on Telegram and other channels are extremely active before and during the token sale, but their communication completely nosedives after the end of the ICO. This results in extremely bad user experience and poor credibility for your project. As a token issuer in 2019, you need to make sure that users are central to the project roadmap of your company. Do not be afraid to tackle the hard questions asked by potential investors on your Telegram groups. Remember that many users are jaded after the 2018 bear market and they are within their rights to ask questions before putting money into your vision. Right from the communication before, during and after the token sale to transparency about the project roadmap and regular updates, there are a lot of ways to show that your business values users.
Leverage Industry Expertise
It is OK to not know everything about a token sale. The blockchain industry is in its infancy and it is unlikely that any business is fully prepared to jump right in. The greatest gift of this bear market to the industry is that it has spawned many quality products and solutions that can help new businesses launch their token sales without worrying about the nuts and bolts of the blockchain industry. We have spent the last year identifying the key problems of the token sale industry and have a developed a cutting-edge CRM platform called T-Axis, especially built for ICOs and STOs. Why use a generic CRM platform for token sales that are not aligned with your business needs? Similarly, you need to find the right ICO Advisory partner for your project. A good ICO advisory company will invest time in your project and help you tread the blockchain maze. In addition, the ICO advisor will not be scared to say NO to you in case your plan is not sustainable. Partnering with the right company can prime you for success in 2019!
Multiple Ways to Approach Token Sales
When you think of ICOs, you normally conjure images of projects trying to raise money through retail investors. While this approach paid rich dividends in 2017, it is not necessary that you need to approach your token sale in the same fashion. You can opt for a private sale where the majority of the token sales are sold to private investors. The Simple Agreement for Future Tokens (SAFT), Real Agreement for Tokens and Equity (RATE), Simple Agreement for Future Equity (SAFE) and even a straight equity offering based on a token are some of the other innovative ways projects might structure their token sales. In our ICO Trends for 2019, we also anticipated a likely rise in the number of Initial Exchange Offerings (IEOs) where projects delegate their token sales to compliant exchanges and provide investors a ready platform for liquidity. Another way might be Reverse ICOs where existing, battle-tested businesses raise capital through tokens. Almost like an IPO in that sense, Reverse ICOs may become a popular way to fund existing businesses in the public market.
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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