Over the past few months, the number of deployments of ICOs has dropped dramatically. Still, there are still two months to end in 2018, and everything is possible in the electronic money market. Accordingly, to choose a good ICO, you need to rely on the following 10 basic elements. Most of all, these are the things that are essential to the success of a project.
The basic value of the token economy (tokenomic)
As noted, the ICO will implement the sale of tokens, may be public or private. Therefore, the quality of the token and the economy of the project will be the decisive factor for the success of the project.
The token economy will refer to the incentive structures created in dispersed ledger protocols, allowing for the exchange of information and value between people. A potential project will provide different coding data to ensure the balance of market conditions, and to provide contributors with promising revenue.
The KYC / AML process platform
While many believe that electronic money signals the birth of a global decentralized economy, we are still living in a world dominated by traditional financial institutions. Therefore, the implementation of the above forms will make the company easier to succeed. In the current legal environment, it is important that an ICO has a safe and prompt procedure to complete the KYC and anti-money laundering (AML) procedures.
About KYC, this is the method of verification that financial institutions and companies are required to perform to determine the customer’s information for business purposes. AML, which is a set of procedures, laws or regulations designed to prevent acts of making money through illegal activities.
Online trading platforms are also considering fully meeting the KYC requirements before listing the tokens of a project. In addition, banks and investors are expecting an AML certification before joining the ICO.
In any case, be sure to use an experienced provider who works with the ICO and can verify a person’s KYC application after a few seconds. A project should keep its marketing funnel neat and minimize obstacles for investors when working with electronic money.
Standardize tokens
Another common feature of successful ICOs is the use of ERC20 tokens to raise funds. It is a standard token that is released on the Ethereum blockchain and does not require separate scoping ledgers. Therefore, a project may raise funds on the Ethereum blockchain before passing the value of the token to the private string, or holding it on the Ethereum string and setting a dApp on the base string.
Furthermore, this type of token provides a fast transaction rate, and it is easy for a web client to transfer ERC20 transactions to a blockchain. Due to being widely accepted in trading platforms and electronic wallets, the ERC20 token can also be accessed by most investors. More than that, it also provides a large group of programmers that can work with tokens.
The strength of the Airdrop campaign
When discussing marketing strategies for the ICO, the first tool to consider is airdrop, where tags are distributed to multiple groups to raise awareness of a particular project. An airdrop can help an electronic money gain the network effect needed to get value. Even if the project does not see the benefits of the network effect immediately, it can be a cost-effective marketing tool.
While at first, this seems like for free money, a good airdrop can lead to an increase in the value of an ICO. In fact, a token is only valid if it is used as a swap for value and circulated in large numbers.
Implementing airdrop may be similar to traditional pay-per-click advertising, for example, if you participate in airdrop that requires users to visit the ICO’s website. In addition, airdrop can allow ICO campaigns to harness the existing communities of electronic money holders.
5. Bounty bonuses are an effective incentive
Referral programs are a common example of the bounty program, and now the crypto space is witnessing a series of innovative, effective campaigns. Actually, it is a great addition to the marketing strategy of any ICO. It is providing incentives for community members to add value to the project.
Bingo campaigns can also be used for a variety of other purposes to help the ICO’s global vision. Considering all the potential benefits, rewarding bingo campaigns have a fixed position in the ICO marketer’s toolkit.
6. The importance of the token parameter
It is extremely important to set up a soft cap and a hard cap for your project. Previously mentioned the minimum amount needed for the project to be able to ‘take off’, while the latter refers to the maximum amount needed to accomplish the goals of the ICO.
Many investors sceptically contribute to an ICO until it reaches a soft cap and should not be placed too high. However, keeping a soft cap too low can put pressure on the development team to create an MVP that does not have enough capital. With this in mind, an ideal soft cap should be 10% higher than the required amount for an MVP to account for any unanticipated costs.
ICO’s IC cap is a decisive factor for its success. Most successful ICOs have a capitalization of no more than the US $ 25–30 million, many of whom still hold a lower number. Analysts find low levels of difficulty as a sign of a group’s commitment to set goals and this makes them promising investors.
In conclusion, it should be said that when designing an ICO, take the time to look at your project’s tokens. Although they may vary depending on the ICO mentioned.
7. Community building is an important task
Unlike most other funding vehicles, a good ICO also involves creating a community of users who have invested in developing a specific distribution ledger, dApp or electronic money. While every ICO should use the best tools, there is a certain degree of involvement that the ICO community and ICO investors have come to expect.
There are many social media platforms that can support a growing team connecting to the community. The most important platform for ICO marketers is Telegram, and it has become a standard for ICO groups to have a Telegram group to communicate project updates to the community and get feedback on what users are doing. Feel the right direction to develop the project.
8. Carefulness with the partner
A large number of ICO scams also leads to the abundance of fake companies wanting to make money by what they see as a way to make a profit from the expense of others. In addition to the lack of transparency in a market that constantly adjusts to the latest regulations, the youth of many companies offer encryption-related services and may be difficult to determine which agencies are bad sites. and address Ethereum.
It is therefore extremely important to undertake an assessment and to ensure that every partner company dealing with issues such as KYC / AML or community management has a solid track record in the crypto space.
9. Tokenomics good
Although investors should not expect a minimum viable product (MVP) until the ICO reaches the soft cap limit, there is now an expectation for ICO groups to provide as much evidence as possible. Good to show the feasibility of their vision.
An experienced team behind an ICO can provide a lot of assurance to investors. Although this path is quite difficult for a group of individuals who do not know much in the crypto field. The other way to overcome this lack of trust is to make your platform open source and get the encoding personality set up regarding your ICO.
10. Educate the community
The ICO is well educated in their community of electronic money, their products and their market will greatly benefit from a loyal user base in the future. It is important for ICO teams to take the risky nature of electronic money investments into the public. Large institutional investors are aware of the risks in the market, however, there are still a lot of small-scale investors, who are hurt by the ICO, promise unexpected returns.
-According to Zcrypto -
-Edited by Twogap -
====================
For more information, please visit our sites at https://twogap.com
And don’t forget to reach the news on https://twitter.com/twogap_official and send us your questions on https://www.facebook.com/twogapofficial
