Five Things We’ve Learned from Watching the ICO Market(ing) Closelyby Sebastian Schuhl
The hype of 2017 and the meteoric rise of bitcoin’s price brought mainstream attention to the world of cryptocurrencies. Now, in 2018, however, the hype has dwindled to a low buzz. The first victim of the red water market has been a gash in trust from the swath of emerging crypto-related projects. In December of last year, all you needed was a white paper, some web content, and some traffic on your social media channels and you’d be all set. Since then, much has changed. Critical analysis of how and when to launch your initial coin offering (ICO) and how to get awareness for your project is more important than ever.
Keeping an Eye on the Market
First things first: The bearish market is a blessing in disguise. The omission of “when moon” and Lambo memes on Twitter means entrepreneurs, technologists, and developers can spend more time actually deploying blockchain-specific use cases. The narrative has thus grown from keep “HODLing,” to include “BUIDLing” too.
But once a team has created a battle-tested product, the hardest part is behind you, right? Well, sort of. Managing the launch of your ICO and the marketing that it encompasses is just as tricky as building out the next wave of cryptocurrencies. And rightfully so.
August 2018 saw the lowest amount invested in ICOs at $336 million and indicates a much more conservative investor mindset. This recast has been two-sided. At best, scam projects and low-quality services are quickly starved of free money. At worst, paranoid financiers, if they even stuck around, are so skeptical that they may overlook a project with excellent fundamentals just because they never got their question answered in a Telegram channel.
While great projects should sell themselves, there are still a handful of details to keep in mind. And after watching the price movement of the pioneer cryptocurrency for a little while now, we’ve curated a list of five points that will make or break the launch of an ICO. What’s more, these points can serve both the eager investor and the forward-thinking entrepreneur.
Five Points Affecting Successful ICO Marketing
In the following series, we’ll be taking a deep dive into the following topics:
How does timing affect your ICO’s performance?
How to gauge your target group’s interests
What are the emerging social channels used to reach investors?
How to strategically manage the distribution of resources
The importance of transparency in the cryptosphere
Each point represents, in one way or another, the general themes that we have noticed since the inception of the tokenized economy. Their consideration has also led to some surprising conclusions.
It’s remarkable the number of times an excellent concept falls short of its ambitions by simply timing their ICO launch poorly. Even more startling is how a project inflates a token’s price by actively engaging with their followers on Reddit, Telegram, and Discord channels despite any real product.
Outside of timing and cultivating a healthy media presence, it’s also important to consider a project’s transparency and to think deeply about how they are distributing resources. Is the budget being spent on an army of Twitter bots? Or are you developing strategic connections with periphery services that help your team’s end goal?
All five of these points work synergistically too. If, for instance, the market takes a steep turn for the worst, but you’ve already announced a launch date, keeping potential investors in the loop will keep them loyal when you push a deadline back a few months.
It’s also important to consider the demographic making up your social media channels. Are people clamoring for info on the airdrop and how to claim their tokens? Are fund managers asking about the boundaries of a cryptocurrency’s liquidity? Or are friends and colleagues looking into your project as their first step into the space?
Reviewing these questions is critical and recognizing them early will help you develop a robust strategy to reach your hard cap. Keep an eye out for more insights into these 5 ICO Marketing Strategies in the coming weeks.