ICO Advisors — Are They The Real Deal?

With each day, there seems to be a new development in the crypto industry. As we religiously trace the highs and lows, what becomes apparent is that the interest surrounding it will only increase with time. Another truth emerges — going the crypto route for fundraising remains a risky proposition. Sample this — of the 902 ICOs tracked by TokenData in 2017, 142 failed before fundraising and another 276 failed after. While these statistics might appear formidable, it certainly doesn’t mean that all ICO projects are doomed to fail. If you’re considering the ICO route for a startup, there’s no cause for worry. In fact, a clear understanding of what separates successful projects from failed ones is crucial before you launch an ICO.

Do you need an advisor?

All ICO projects today engage an advisor. But can the various sundry players in the industry be trusted? The role of ICO advisor has come to evolve over the last year. Many ICOs still don’t understand the role of and the need for an advisor. Often, this results in a wrong choice of advisors, under-capitalization of the resource, and sometimes a complete disconnect in expectations.

Initially, advisors served the purpose of broadening the skillset and experience of the core team. When potential investors evaluate deals, one of the most important factors they look for is the makeup, skills, and track record of the team. Thus, choosing experienced advisors is goes a long way in adding experience to your project and increasing the probability of success. Moreover, advisors lend credibility to the deal. While a lot of ICOs still treat the advisor role as a marketing tactic, the entire range of the benefits of having one on board must be explored.

Scope of involvement

Many ICOs fail here. A thorough and clear understanding of the advisor objectives and clear communication of expectations increases the probability of success. Advisors are not supposed to function as regular team members. They are resources that must be leveraged to that area they can most positively impact. Different advisors can be comfortable with different levels of involvement, an area of discussion that must be detailed in the advisory agreement. Moreover, not all advisors are equal in skillset or levels of involvement. Identify the best one and clearly communicate expectations. Be respectful of their time and keep them excited about your business.

The right people

Choosing the right person is essential before embarking on your startup journey. There is no doubt that you need an advisor to traverse the uncharted territory. However, a good advisor is one that is able to actually add value through his network. The advisor, whose role is to mediate between the two parties (the company vs investors) and advising on investment, must have access to investors and other decision makers. Having connections to key players in law, marketing, media is also useful for forging beneficial partnerships. Above all, the right advisor must be willing to be part of the growth of the company and serve as a sturdy backbone through the ICO process.

Sometimes, simply knowing the right people can make all the difference to your startup, especially if those advisors are well-respected in their industries. When searching for a skilled advisor, the first step is to do proper research. Many a failed projects are proof of this step being ignored. Check their track record and reputation in the industry. Ask yourself it the advisor is a good fit and can add value. Additionally, ensure your advisors care about your product. Merely having an advisor to lend credibility to your project is bad for everyone.

Because building something great needs a strong group of people from various backgrounds, building the right advisory board can make it or break it. Good advisors will truly act as guides, steering the ship in the direction of the right investors and partners to sail successfully.

Creating a right ICO marketing strategy can be a challenging task. Trends come and go in the blink of the eye in the blockchain community, which is why it’s important to work with a company with experience helping blockchain projects take off. Visit our website today to learn more about how Tokenasia Platform can help you in your ICO.

That way, you can get back to doing what matters — developing innovative Blockchain solutions.

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Originally published at tokenasia.com on July 4, 2018.