Launching and running a successful ICO is not an easy task as it requires a lot of planning and patience. There is a short amount of time to create an insane amount of buzz around the company you are launching. Many crypto companies and ICOs get overwhelmed during this process; and, in order to show success and a positive public image, they try to take shortcuts.
In this article, I have put together 4 mistakes that many ICOs make and how they can avoid them.
Too Many Advisors and Employees
Most companies, before they even launch, bring on a team of advisors and hire 30 – 40 employees to show the company is legit or has a viable product with a large team. Companies then promise these advisors and employees the stars before they even have a running product ready.
The best approach is to start small, create a finished or semi-finished product to show the investors, and then get investments to grow the team and build the business further.
Fake Promises on Return on Investment
With the boom of cryptos and ICOs in 2017, most companies promised investors high returns on their investments. Almost everyone who invested in cryptos invested in ICOs thinking they would get rich quick. However, many found out the hard way that it was all just a scam. (Unfortunately, I was also one of them).
The SEC has been working for the past few months to ensure they catch scam ICOs like bitconnect, onecoin, plexcoin etc. This TechCrunch article provides the details.
Buying Telegram Followers
One famous slogan you all may have heard is “Fake it till you make it”. Over the past few months, I have researched many ICOs and noticed that they don’t have many customers but have over 50k to 100k social media followers, especially telegram followers.
This attitude of focusing on followers is completely wrong. People perceive it to be about quantity rather than quality. It makes you lose the fundamental important part of the crypto world and that is the community.
ICO founders should stop focusing on obtaining the largest telegram or any other social platform followers and instead focus on the value their company provides. Once people see that the company provides value and solves a problem, they will come running to invest in the business.
If you are a small investor, don’t let the insane amount of social media followers or the internet buzz fool you. 99% of them are fake followers, bots, or even paid followers.
Once you launch an ICO, the way you present your company through a website is extremely important. If you want people to understand your idea, believe in it, or even invest in it, you need to have a professional website created with a great design, smart branding, and excellent user experience. 90% of people always Google a business before they decide to buy or use your services. The first impression always matters, especially when they visit your site. So make sure you engage your customer from the start.Opinions expressed here by Contributors are their own.