Why tokens are brands, and why brands need a story.
We all know that a brand can be anything from a name, sign, symbol to a design, term or a combination of them. The brand serves the purpose of identifying the products and services of a company and differentiating it from the rest. But do you know that tokens are also a brand of the company and are crucial to the success of your ICO, product and your company? Tokens are a promise just like a brand and can develop trust amongst the investor/consumer community to help them engage later in the actual product during the post ICO process. The blockchain is a growing sector, companies are facing problems of differentiating themselves against their competitors. The audience in the ICO space may be interested but sometimes not knowledgeable enough to understand the know-how of the technology. Branding can provide the company with an identity, directing them to focus on the specific target groups. Continue reading if you’d like to know why branding is the key to a successful ICO and how a company can lead to a successful ICO through the right branding.
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When a company creates a name, logo or symbol, it is creating a brand. These elements serve the purpose of making a reputation, prominence of the company and creating an awareness of the industry. When we talk about ICOs, tokens serve a similar purpose to an ICO as a brand does to a company. Developing a successful brand is essential for a company to survive. Similarly, a relevant token is the key to a successful ICO. The token is the key element defining the purpose of the company’s ICO and maintains is reputation.
Tokens are more versatile than you think.
While planning an ICO, it all comes down to the tokens the company is planning to launch. Tokens are like a brand being offered to the investors/consumers interested in the ICO process. The token name, logo or symbol is what defines the ICO and gives it the characteristics to differentiate itself from the rest. An ICO is not only a crowdfunding activity but an economic transaction just like any other, which involves the exchange of commodities between two parties that is the company and the investor/consumer. The term ‘token sale’ signifies that through an ICO, the company is making a sale of a commodity in return of some monetary value. In this case, the commodity is the token the company is putting on sale. As a brand helps a company to differentiate its offerings from its competitors during the sale process, the tokens help to differentiate the ICO from the rest, giving it a distinct identity and characteristics.
A point to remember here is that investors/consumers get involved in the ICO process to acquire a token. This token will represent their interest towards the ICO and assist them in eliminating their FOMO amongst their peers in the blockchain industry. Characteristics of the token will be the elements satisfying their behavioural needs, and a means of identification for the public, acting as a brand in the industry. The monetary value, logo, name and symbol of the token defines the ICO and represents the company during the whole process. Out of hundreds and thousands of tokens in the entire blockchain community, each ICO is represented by its token and creates its brand identity.
Give your idea an identity
The token is the source of the identification of the ICO and the promise, the bond or the pact that the company signs with the investors/consumers through a smart contract. In addition to this, the value of the token is the key element that represents the token as a brand of an ICO. The value of the brand or the token acts as a risk reducer for the investor/consumer and the company, a signal of quality and what would give the investor/consumer as well as the company a competitive advantage in terms of value exchange in the future. The token value affects the image of the ICO, as a highly valued token implies a successful brand, giving a strong position to the ICO and a low valued token implying a weak brand and an unsuccessful ICO.
The token as a brand will give the psychological satisfaction to consumers/investors of owning something unique, valuable as compared to their peers and the thought, to participate on something major. If we stop for a second and think about it, these characteristics are similar to that of a brand and serve all the purposes that a brand is supposed to. ICO being a crucial business decision taken by companies requires a lot of time, efforts and resources for its success. As tokens being the ultimate face of the ICO, they are a brand in themselves having an independent identity, value and serving the purpose of giving the ICO and the company recognition and reputation they deserve.
Like every brand needs a story, tokens are no different. In the era of relevance, investors/consumers cannot be attracted towards a brand until they can relate it to their needs and preferences. To ensure that, every brand needs a story that can deliver the rewards and the incentives that come along with it. A story is what will make investors/consumers believe in the idea, the concept of the company and the change it wishes to bring in the society.
Photo by Brad Neathery on Unsplash
Every company has a story
The company may have an innovative project that could change the way our society functions but that needs to be explained in simple words. Every investor/customer does not have the capability of understanding the technology that backs the idea or the concept. The only thing that matters to them is how will that idea transforms their lives and what would be the benefits they’ll receive as a result of their investment towards the brand. It is the nature of humans to believe in stories and storytelling has always been a key element of our history. Every well-known brand today uses storytelling as an art form to reach out to their consumers and make them feel connected towards the brand. Advertising through videos, photographs, ad campaigns have storytelling involved as it delivers the message in a clear and useful way to the target group.
Give your idea the story it deserves
Similarly, tokens as your brand need to tell a story to connect with the investors/consumers emotionally. The white paper carries the innovative idea that has the potential to disrupt the industry, but to develop it and make it successful, the white paper needs to be backed and trusted by the investors/consumers. The only way the investors/consumers will find the white paper relevant is through a strong and powerful story that connects with them and satisfies their emotional, psychological and physical needs. Brands can not survive without a story. If that was possible, the existing companies would not be spending thousands of euros on marketing and advertising. A brand becomes a success when the investors/consumers can relate to the story and find its purpose relevant to their needs and wants.
Your Takeaway
Earlier this year ‘Lisk’ a blockchain platform startup took a bold decision of rebranding and relaunching themselves after they had successfully completed the ICO phase. Another company ‘Delphy’, a decentralised mobile prediction platform announced in April about rebranding themselves before the launch of their mobile platform. The company’s rebranding strategy highlights a humane focused interface, a new identity to the brand, new positioning strategy, logo and a website. Delphy aims to build a fun identity for the brand reflecting the key features of their platform.
This proves the fact that branding is a key tool to the success of the company and even companies that have passed the ICO process are indulging in rebranding and relaunching themselves. A successful brand story can create an emotional bond with the investors/consumers and give it a new identity that is relevant to the company’s mission, idea and product. Therefore, your brands need a story that is relevant to your target group. A story that promises them that your brand gives them something unique and provides them with the satisfaction they need. If you feel that your idea is relevant and your brand needs a story, get in touch with us and let’s work together in fulfilling your promise.
