Why ICOs Fail and How this can be prevented?
ICOs (initial coin offerings) are just like IPOs and are used by most of the startups to walk through the strict and regulated fundraising process requests by investors or banks. They are also called initial public coin offering (IPCO) and was abused by business beginners in raising investments for their venture. Perhaps ‘token sale’, ‘token launch’, ‘crowdsale’, ‘pre-sale’, ‘token generation event’, ‘token sale offering’ can better explain Token crowdsale concept.
A token is a blockchain equivalent of a share which was invented when blockchain companies had nothing to offer to their investing company. The developers give out these tokens which are the new cryptocurrency in exchange for the capital. And in some of these tokens truly have a potential of becoming one the most valued cryptocurrencies. There are a few enforced rules which some of the expert developers follow so that their tokens could undergo interactions with various wallets and smart contracts. These smart contractsand wallets allow making payments and transfer of cryptocurrencies.
A number of ICOs have failed to reach their desired marked target while some of them have been withdrawn from the market.
There are a lot of reasons as to why ICOs can fail and how to prevent them from going down -
1. The product offered by you is not needed and your product has failed to attract an audience and connect with customers. Before launching an ICO see that there is a huge audience for your product.
Any blockchain based product aims at putting the entire control in the user’s hands and that’s why it is needed to make sure that your offerings do not fail.
2. For having a successful initial coin offering a good marketing strategy and PR is the road to travel. A website which does not lack basic written content and interactive designs is what investors are looking for. An ideal ICO website should have fundamental design and basic web elements like about page, contact page, whitepapers, media, social content like Twitter to hold a grip on your business.
3. Lack of management is also one of the main reasons for ICOs in failing. Many of newcomers are not aware of the importance of online marketing and do not give heed to analytics reports. As ICOis heavily dependent on marketing make sure to set up Google analytics or any other analytics platform to track certain user behavior.
4. Represent your brand with an upper quality website. The look and feel of your brand’s web page should be able to convey your target and your brand value. Your brand is the face of your offering and it is better to make a good brand identity which will give out a perfect impression. A poor quality web page will end you up with a failed offering.
5. Money is the most important element in any business and it is not wise to keep it aside while listing down your brand’s objectives. Breakdown your business plan and prepare a full-fledged budget. Although, do avoid keeping unrealistic budget plans and if you’re just taking your first step towards ICO, it is best to raise enough fund to launch a proper sales campaign before stepping into ICO.
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