We have all been able to appreciate how the cryptomime market is experiencing one of the lowest moments in its recent history, thus generating much concern among potential investors. But is this affecting the ICO? Not so much, in fact, in 2018 has been one of the most fruitful years in terms of token collection and sales. Certainly there are certain aspects that all ICOs must possess.
However, the experts determine that these collections are not the product of collective participation but that it is venture funds or large private investors who are making these important investments. The reasons why small investors no longer want to invest in cryptocoins are very varied, some say it is because decentralization did not end up being as it was intended while others explain that the destabilization of prices drove many away.
The truth is that the ICOs have had to adapt to an increasingly demanding investor market that no longer suffices to hear the word “Blockchain” to consider that a project will be successful. Faced with this situation, the advisors have established that ICOs need to count certain elements in order to convince the market how positive an investment in their project will be.
- 1 Elements that every ICO should have
- 2 1.Tokenomics of the ICO
- 3 2. Profitable business model
- 4 3. Really useful useful tokens
- 5 4. Clear project data
- 6 5. Concise and convincing information
- 7 6. Accredited and Authorized Equipment
- 8 7. A minimally viable product
- 9 8. Interaction in social networks
- 10 9. Sales strategy in the market
Elements that every ICO should have
1.Tokenomics of the ICO
The tokenomics is the financial information of the token. It specifies the price of the token, its usefulness, how many tokens will be produced, and how the token will be distributed. The investor wants to know all these data in order to know the profitability of the virtual currency.
2. Profitable business model
The project has to be profitable and that is why it is necessary for the platform to generate dividends that investors consider profitable. This goes beyond the simple valuation that the token will have, it needs to explain how the platform will be profitable with the services it offers.
3. Really useful useful tokens
Recently many ICOs have been inclined to create utility tokens but the problem is that the utility they give to these tokens is very small or insignificant. You need to create something that will be useful to society and show an attractive differential for investors.
4. Clear project data
Investors need to evaluate the developers’ finances, business model and credentials and can only do so if they have clarity in the information being presented to them. It cannot be assumed that investors know, it is necessary to explain each of the points and more in a sector as recent as that of Blockchain technology.
5. Concise and convincing information
Projects in general need to have a piece of information that explains precisely what it’s all about. This is useful for presenting the idea to investors who do not have much time to analyze and who need substantial information to be able to decide.
6. Accredited and Authorized Equipment
You may have a millionaire idea but if investors feel that the team doesn’t have the level to carry it out, they won’t trust that project. ICOs need to have experienced members in the field who are thinking of making inroads. The advisors of the ICO projects should also be evaluating them since they play a fundamental role in all the work that needs to be done so that the project can be developed correctly.
7. A minimally viable product
Investors see it as highly positive that the project developers have already invested some of their money in the creation of a minimally viable product that shows something of the idea they intend to carry out. In this way you can measure the team’s commitment to the project and also assess whether this team has faith in what they are doing.
A revolutionary project should cause a sensation in social networks and is also highly appreciated by potential investors. In addition, a good relationship between developers and the general public is a positive indicator. The possession of social channels such as Telegram, twitter accounts, Facebook, etc. are issues very well seen by the market.
9. Sales strategy in the market
The history of marketing has seen many very good products but do not have a market strategy to ensure sales, the result is a resounding failure. The same happens with the ICO and that is why it is necessary to evaluate the sales strategy with which the project aims to conquer the market.