How to stand out
In the world of ICOs, there is no shortage of competition. Lack of regulations (which is a double-edged sword) and the perception of ICOs being an easy way to raise a lot of money means that the market is flooded. While there are lots of good projects out there, there are also plenty that are sub-par, or just outright scams. The challenge is how to stand out. Here’s our advice on how to do just that:
Budget & Roadshows
Have a massive budget, and budget that budget. Consider everything that you’re going to need, and research what it is going to cost, as you might be surprised at how expensive things like influencer endorsements can be. I would really recommend doing a roadshow, where you and some of your team travel around the world attending all of the top blockchain and crypto related events and conferences. This is a great way to meet large investors and advisors, and meeting people face to face gives them confidence that your project is legit. Tickets, accommodation and flights can all be expensive, so factor that in. There are lots of expensive options for these kinds of events, like sponsoring, exhibition stands, and even speaking slots. If you can afford those things they certainly won’t hurt your exposure, but remember that a firm handshake and a compelling proposition can be very effective, and talking to people is free.
STOs & MVPs
Lots of ICOs have pointless tokens. Their utility tokens have no utility, and so their tokens are effectively securities. If you are struggling to work out what the utility of your token is, you should consider doing a security token offering (STO). Have a minimum viable product (MVP) ready prior to your presale going live – it’s a lot easier to raise money based on an exciting product/ service/ platform, even if it is in its infancy, than grand promises. Make sure that your value proposition is clear, and your goals are clearly stated.
Don’t overstretch yourselves in terms of the raise. You need to be able to justify the amount you want to raise, or it doesn’t look good. You want to make sure you hit your hardcap. If you do, it will lead to good PR, which will lead to FOMO, which will lead to your next round selling out, or high demand for your tokens on exchanges, increasing their price. Also, let’s remember that what might sound like a modest hard cap in the bizarre world of ICOs, say $4m, is still an awful lot of money.
In terms of tokenomics, do lots of research. Consider how many tokens you are going to create, if there will be a limited supply (i.e. pre-mined), and what your price point will be. If you price your token too low, you will devalue all of your hard work. If you price it too high, it won’t be worth it for investors. Look at successful ICOs with the most similar propositions to your own as an indication.
In terms of influencers, make sure you know who you need to get to know, and then get to know them. The earlier the better with this one. Building a relationship will take time, which you don’t have a lot of, and influencers are extremely valuable to you. The price of a token is largely determined by exposure, hype and FOMO (all of which are linked), which is why influencers are so key. Lastly, make sure you get security audits done by experts on all of your smart contracts. Even EOS were said to have ‘epic’ vulnerabilities when they were audited just hours before launch. If there are holes in your contracts – even if everything else goes perfectly – it will all be for nought.