The number of failed ICO projects was significant in 2018 – it was in several hundreds, just to set a perspective. So if you are entering this lucrative niche, you need to ensure a couple of things, or you will be forced to wind up your venture in no time after the ICO phase is over.
A crypto venture is declared successful at an ICO stage only if it manages to hit the required hard cap. However, according to Coinschedule, almost a thousand ICOs were launched last year but less than 25 were able to get successful. These facts are stunning and throw every budding blockchain/crypto entrepreneur off the track for a while to reconsider the business model.
Solve an existing problem
This is a basic rule of thumb. In order to add value in such a dense and shaky niche, you need to come up with an idea that ‘really’ offers something and addresses the rational problems. For instance, if you roll out a token for sending human waste on Mars, people may not be attracted. But if you try to provide virus and bacteria free drinking water in urban areas, you might end up being a billionaire. So it is pretty easy to understand that people will only pay if their immediate needs are being fulfilled.
In the ICO wave last year, several lame ideas came up that never went past the initial stage. Let’s take the example of Rexpax to understand it better. They marketed themselves as a platform for sharing day-to-day household items. For instance, if you plan to get some ice from your neighbor, you would have to do that through Rexpax platform. Now it seems like an overuse of technology and makes stuff far less practical.
It is important for all of us to understand that overuse of technology is never the solution. Instead, you should focus on solutions that simplify the current problems. People are ready to pay millions and billions, provided that the idea is worth it.
Another absurd concept is that newbies try to focus on narrowing down the niche. Since they hesitate to spend more in the beginning and reach out to more prospects, they target a very limited amount of people and hence, fall on the verge of losing the business. In an ICO, it is quite often observed that entrepreneurs need to widen their scale as much as possible. Of course, it does not mean that a blockchain based bookseller should market his venture in an automobile workshop, but you need to broaden up the target zone as much as possible.
A sound founder!
See, everyone takes a start from somewhere so it does not mean that you have to be super-experienced in order for your project to become successful. However, it is important that a founder knows every minor detail about the venture. I mean whenever a guy in the public identifies you as the founder and asks any random question, you MUST be able to answer and satisfy him. That’s how you win customers!
When you appear on the media and people ask you questions, it does not matter whether you happen to have a technical background or not. You have to answer the question correctly, whatever be your domain. The crypto niche is somewhat different from mainstream online businesses. For instance, when tech giants roll out their new products, it is the main technical person who conducts the presentation (could be the CEO, SVP or a regular employee). However, in crypto, people expect the CEO to represent the project and speak out. So you got to speak!
Moreover, it should also be noted that when the CEO or the founder comes up on the stage, the crowd gets unusual energy and that is what going to attract customer towards your brand.
Key advice? Be natural but sound!
…and a team
If the founder is the brain, the team acts as the engine. Therefore, we have not seen even a single successful ICO venture without a strong team. It is understandable that a couple of years back when BTC was just launched, it was somewhat difficult to find niche specialist to make ends meet for a big venture and therefore, the founders were mostly developers. However, things have changed and nowadays, specialist in all departments are available for office-based as well as freelance jobs.
So it does not matter whether you can code or not, you just have to have a vision and a team. But as mentioned in the above section, it is important that the founder knows about everything related to the venture.
Furthermore, due to the nature of the industry, it is not even important to hire the team on salaries. In many cases, the percentage or rather the partnership model has proved quite successful. For instance, if you are low on budget but your idea is lucrative, you could convince a reasonably skilled team to work with you for free if you offer them tokens later on. It happens to be a kind of investment and in order for that to work, your idea must be the shiniest!
See, as a rule of thumb, you cannot prosper without a decent team in this niche because there are varying trends in technology and market every day, that you cannot keep on with that alone. You need advice and skills of multiple people.
Now that all the core elements are sorted out and you are all set to launch the ICO, please do not ignore the importance of registering on a well-reputed listing site. If you happen to choose HighBank, we take a major chunk of hassle off your head and offer you several plans (e.g. marketing) that you could choose and focus on other aspects of the venture, while we market you across the internet!