Why your ICO didn’t raise enough investment
The ICO market more than doubled in 2018 compared with the previous year, but with only 7% of tokens managing to get listed on established crypto exchanges and 55% failing to meet their fundraising targets in Q2 alone – what is preventing this sector from meeting its potential?
The ICO market more than doubled in 2018 compared with the previous year, but with only 7% of tokens managing to get listed on established crypto exchanges and 55% failing to meet their fundraising targets in Q2 alone – what is preventing this sector from meeting its potential? Poor marketing is one reason which is why Contentworks – a leading financial marketing agency – is tailoring ICO-specific content to suit the needs of individual projects. A flooded marketplace, scams and negative sentiment don’t help either, with all reasons needing to be addressed in order to push the ICO industry forward.
The ICO and the Half Baked IdeaThese days, the first hint of an entrepreneurial idea typically results in the creation of a token followed by a call to invest. While this business model might seem awesome on paper, it has many flaws. The biggest being that many of the projects put forward are simply unfit for investment. The ICO world is designed for problem solvers; those who fully understand the potential of the crypto/blockchain sector and have a mission that could potentially revolutionise modern society. It is not for money-hungry founders looking for a ‘get rich scheme’ or wishy-washy business proposals with no solid backbone.
A Sector of Fake ICOs and ScamsWhile there are bad apples in every sector, the ICO sphere has been hit hard by scams, with the ten most high-profile swindling a whopping $687.4 million from unsuspecting investors. Indeed, research predicts that 80% of all ICOs were fraudulent scams. And if this is true, it means that 631 ICOs in 2018 could also be fraudulent. Scams undoubtedly ruin the fun for everyone else – but what happens if you’re legit and have an ICO idea you feel passionately about? Well, you have to stand up and get noticed and that means creating exceptional content. Not only can the right content marketing strategy explain the intricacies of your ICO in a clear, concise way but regular interaction and engagement will help create a loyal fan base that’s integral to the success of any ICO campaign. That said; bad content can have the opposite effect and ruin your online reputation. So with this in mind, here are some common pitfalls that can and will have a negative impact on investment.
- Poorly Written Whitepaper
- No online presence
- No Video Content
- Poor Press Coverage
- Lack of Community Interaction