One of the most important ICO team members is its advisor. Not only do these experts will help the ICO developers but they will also support the project execution stage. But, what type of advisors should and ICO have? Logically, not all are the same and will vary according to each project launched to the market.
- 1 Experts’ knowledge for the project
- 2 What does being the perfect advisor imply?
- 3 A subject matter expert
- 4 Work experience in the field
- 5 Credibility
- 6 Relationship with the Blockchain community
- 7 Experience in other ICOs
- 8 International impact
- 9 Positive image + Good work as advisor
- 10 Caution before “fake” advisors
Experts’ knowledge for the project
There are different types of projects in the ICO. For example: sport projects related to sports, commerce projects, labor issues projects and technological projects. Therefore, advisors may be changed to adapt their knowledge to what the project demands. The only fixed variable is that these people have to be experts in their area of knowledge.
What does being the perfect advisor imply?
Among all the projects we have been able to evaluate and the reaction of the investors to them, we have noticed a series of characteristics that the “perfect” project advisor must have. Said characteristics are described below
A subject matter expert
The advisor being included in the project must be an eminence in their branch. Regardless of the area, whether economy, entertainment or technology, they must be recognized in their areas. This knowledge is important not only to build trust in the investor, but also for the advisor to recommend on what should and should not be done the project.
Work experience in the field
Not only do many investors require knowledge but they also expect that advisors already have previous work experience in the field. Therefore, advisors’ previous work is detailed in many ICO Whitepapers. In addition, it is also common to mention the successes that this advisor has had in the work experience being presented.
The project may have excellent numbers but if an advisor who has been involved in frauds or in non-transparent businesses is included in it, the project will very negatively valued. Investors expect the expert advisor to be a quality example in order for the project to build trust, because when an advisor related to shady deals is included, the general credibility of the project will automatically de distrusted.
Relationship with the Blockchain community
Investors, especially those who are more involved with Blockchain technology, require experts who know in depth how this technology works, its limits and its contribution to society. Regardless of whether they are lawyers, accountants or investment advisors, they expect the expert to get involved with the Blockchain technology in their work area. They may be researchers, lecturers, analysts or simple fanatics, but investors expect advisors to have a clear idea about the technological issue they are dealing with.
Experience in other ICOs
This is a somewhat difficult to achieve but important characteristic for ICO advisors. If an expert’s CV shows that they have served as an advisor in another ICO before and also that ICO was a success, investors will trust a lot more that project. The investor will be attracted by this expert and will be able to repeat the success of the last project in this new project and therefore will make the investment revalue.
The advisers and experts know this situation and that is why when they already have this experience, their fees tend to be higher than those who have not had the same opportunity.
This characteristic is not very easy to find either, but because all ICO expects to have a global adoption, having an advisor who can generate a global impact is something very desired. This international impact is usually achieved if the advisor has had the opportunity to work in multinational companies or if his own company has international reach or when the expert has studied in universities from different countries.
Positive image + Good work as advisor
Beyond the positive image that the advisor can give to the ICO, his experience should also be noted in the work the project is carrying out. Logically, investors evaluate the Whitepaper and the Tokenomics of the project, its activity in social networks and the marketing being deployed, but all this is more deeply analyzed by them when they see that there are important advisors behind these elements of the project.
If the project’s advisor is an important marketing expert whose advertising strategies are bad and do not reach any investor, it will only generate suspicion in the market. The same thing happens if they announce that they have an important economist as an advisor but they expose some Tokenomics that are not profitable for the investor.
These actions make the investor understand that the advisor is only painted on paper and has not done any work to improve the project. It gives the impression that the project simply paid to use the name of that specialist.
It must be noticed that, thanks to the advisor’s work and their knowledge, there was a change (for the better) in the project. Let us remember that the advisor provides the investor with a kind of “guarantee” that the project will perform adequately because their knowledge and experience will be at the service of the ICO in question.
Caution before “fake” advisors
Unfortunately, within the market of ICOs and cryptocurrencies in general, it has become a widespread practice taking advantage of the false image and the name of people recognized in the Blockchain industry to say that they are advisors of specific projects. It usually happens more than what the market wants to admit and sadly many investors keep falling into these traps.
Investment experts advise that the official profiles of the aforementioned expert in social networks are always reviewed to check for any mention or relationship with the ICO in question. If there are still many doubts, they can be directly written to these networks to ask them for their participation. There are many professionals who have learned that they appear in different projects as experts thanks to these messages.
Some well-known experts in the Blockchain industry usually explicitly publish on their web pages or on their social networks which are the ICO projects that have their advisory services and explain investors that any project that is off the list and claims to have their names is false. This is very useful for diagnosing false projects, but unfortunately not all advisors put it into practice.