In the Beginning Was the Whitepaper
And it was sufficient. However, those times are over. In 2017, it seemed like any kid with a bright idea could write (or plagiarize!) a whitepaper, hold an ICO, and pull in millions or more. Websites offered best practices for whitepaper production, emphasising ideas like “This single PDF, if done correctly, can fetch you millions of dollars in under 24 hours.”
These were the glory days of the ICO, and like the Boss sang, they’ve passed us by. We’re now just emerging from the chill of the crypto winter, and the kill off of projects has been impressive, to say the least. According to Bitcoin News, at least 144 ICO launched in the salad days of 2017 failed, with more than 250 altcoins dying in the crypto winter.
This isn’t terribly surprising, considering how sloppy — or scammy — many of these projects were. Perhaps what’s more surprising is the enormous amount of money they were able to raise with almost nothing to back it. However, that was then, this is now, and a whitepaper isn’t the magic passport to riches it used to be.
As the chill of winter is slowly seeping away (or is it?), and interest in blockchain is coming back — but it looks like the 2017-style ICO is dead and gone. That’s not a bad thing, at least not for the industry in general. While the many people who lost their shirts in the crash may disagree, it’s only beneficial to the industry that it moves from a FOMO-driven cowboy ecosystem into a more balanced, professional field.
Time for spring cleaning
Professionalism can be something of a controversial word in blockchain circles, as there is a tendency to associate it with big-money players, centralised governance, and a move away from the grassroots — but this isn’t the case. The lack of professionalism is one of the reasons that so many projects failed — poor financial control, poor planning, poor understanding of the market — and getting professional is the best way to ensure the industry survives.
The trend to professionalism is becoming stronger — projects are increasingly going to market with MVPs or partnerships in place, financial controls are being established early, and regulatory and legal opinions are being sought before fundraising. It’s a little more disciplined, and a lot more sustainable.
It only makes sense, after all. Blockchain is a new field, and thus nobody has decades of experience — but that doesn’t mean that professionals from other fields have nothing to contribute. Having a rich team of experienced pros is an excellent way to hedge risk and set a project off on the right foot. After all, the niceties of blockchain can be learned, but experience must be earned with years — or decades — of practice.
Play to win
While the crypto winter took a toll on the ecosystem, it made it stronger in the long run. Just like in nature, the survivors of the winter have more space to grow in the spring, and they’ll be followed by a new, stronger generation that’s learned from the lessons of the past. So for new entrants to the market, here’s a few springtime guidelines to follow:
- Have a clear problem to address. “Something something blockchain cryptocurrency” won’t cut it anymore. Know your market, know your potential use cases, and know your technology’s limitations.
- Have tech in place. A good idea isn’t enough anymore. Take the steps you need to prove your idea before taking it to the market — whether you’re thinking of an ICO or STO. Sizzle doesn’t sell anymore — you need to deliver some steak.
- Know your investor profile. Know who will want to buy into your product, and tailor your offering to them. There’s a lot of burned buyers out there, and they aren’t nearly as willing to extend the benefit of the doubt as they were two years ago.
- Seek out professionals. Fill your team with pros. Enthusiasm goes a long way, but professionalism is what will carry you over the finish line. Blockchain may be changing the world, but that doesn’t mean experience in the old world isn’t transferable.
- Be relevant. Don’t ever expect that your audience will just get it, or that the tech will sell itself. Make sure that your offering, your positioning, and your communications keep you relevant in the eyes of the people you’re trying to reach — after all, they’ll be the ones that make or break your success.
Change the world
Blockchain technologies will change the world for the better, if we don’t blow our chance. At THE RELEVANCE HOUSE we believe in the power of blockchain, and we’re doing our part to ensure it thrives. From concept to execution, our team of seasoned professionals provide guidance and advice to ensure that every project is on brand, on target, and always relevant.
THE RELEVANCE HOUSE is a full-service blockchain marketing consulting agency for startups conducting an ICO or STO. The focus is to guide blockchain startups in building, designing and delivering a relevant brand and story. Because only relevance has impact. We look forward to hearing about your project. Contact us, we don’t bite!
