Initial Coin Offerings: What They Are and How to Prepare?
The trend of cryptocurrencies and Blockchain are still a hot topic for everyone, especially investors.
Although some are still unaware that there is an existing digital currency that earns more than your money in the bank, cryptocurrencies are still rising in terms of investors and users.
Moreover, the high technology of the digital currency industry gives solutions to the problems happening at the commercially standardized technology advancement such as Artificial Intelligence, Augmented Reality, Virtual Reality, and High-Speed Travel. Now, our technology has now seen a new innovation and this is the ICOs (Initial Coin Offerings).
ICO is known as a crowdfunding tech that uses crypto-tokens instead of traditional currencies.
ICO vs. IPO
An ICO is like an IPO (Initial Public Offering) but without the many layers of regulation associated. It means that someone offers investors some units of a new cryptocurrency or crypto-token in exchange against cryptocurrencies like Bitcoin or Ethereum.
Since 2013 ICOs are often used to fund the development of new cryptocurrencies. The pre-created token can be easily sold and traded on all cryptocurrency exchanges if there is demand for them.
However, if you are going to invest it in a company, this doesn’t mean you hold a share of the firm and only has access to its ICOs. This is unlike IPO or a VC. Because of the vulnerability of ICO, many can be a victim of a fraudster who can release a coin or token declare it has a value and takes away everyone’s money who invested in it.
Many are still investing in ICO especially small businesses and startups who are 100 percent willing to experiment and take a risk to test their idea even though there are no legal regulations that protect them.
The programmers raise money by creating and selling their own virtual currency, generally with rules similar to well-known virtual currencies like Bitcoin. The new tokens are usually designed so that they can be used only on a computing service the programmers are building.
In terms of marketing, ICO as a crowdfunding tool is easier to set up than traditional funding routes as it is a perfect platform to test your marketing strategy and assumptions. This tool can also give your products enough noise to strengthen its brand and clients.
To simplify ICO, this is a way to increase cash flow quickly without going through a traditional process and conventional auditing.
However, security is still a big concern for most people. With no support from the government and financial institutions, the ICO can be a risky investment, however, for a true marketer, a risk is just a daily part of the job.
How to prepare for successful ICO
It’s a dog-eat-dog world in marketing but one must remember that planning your marketing strategy is crucial from the first day because your product can change but the perception of people to your brand and team cannot be fixed if an attack happened from competitors that you are not prepared.
There are several crucial elements you should be focusing on if you are marketing with ICO:
Brand awareness and community building are the most important aspects of being transparent and will combat any fear or uncertainty potential investors may have. It is important to do some things that don’t scale, like replying to potential customers directly at the beginning, so that you’ll have the growth and champions to propel your launch to success.
Find potential investors
There are plenty of crypto meetups, conferences, and seminars around the country. By going to these events, you’ll learn how to test your idea by asking cryptocurrency enthusiasts if they would use your solution, or at the very least if the problem you’re solving is something they struggle with.
Introduce your team to potential investors
An anonymous team shouts as a scam from every angle. Typically, ICOs list several layers of associates; team members, advisors, partners, sponsors. Your advisors should be genuinely interested and even invested in your success. Ideally, they would have run their own ICO rounds.
Create feasible marketing strategy
Your marketing strategy has a potential to soar with these tips:
Optimize your website for search
Your investors can be lead to a wrong site with a little tweak of your URL. For instance, etherdelta.com was spoofed to “etherdellta.com” and “etherdelta.one”. Sending potential investors to the wrong website is a nightmare for security and your project’s reputation. Besides ranking high, SEO can be a source of security for you because scam sites don’t have this potential.
Prepare detailed white paper of the project
A white paper is the backbone of any crypto-tech proposal. It’s what investors will look at first to see if your idea has what it takes. In this document, you should layout your business plan and details of the technology you intend to use.
Create a brief explainer video
Consider creating a brief explainer video to explain your solution and give investors and end users an idea of what they can expect.
Build your community
There are so many good uses and so much good data to be found on the plethora of platforms and all the tools can be used to promote your launch; events, groups, messenger, stories, shares, likes etc.
ICO marketing has a great potential to increase the visibility of your team to potential investors.
Although there is a high risk of scam and threat on security, ICO still gains a high interest as this tool is easy to process and has a high return on investment.
If you are a risk-taker and firmly believe in your brand, then you can try out ICO marketing and see for yourself how this tool works.