Statistics could no longer be ignored. Most ICOs end and stay away after the tokens hit the cryptocurrency exchange, after the frenzy and “FOMO” visit to the crowdsale ended.
Most observers who follow the ICO phenomenon agree that the trend of the last few months has been that ICOs have lost value after the crowdsale, and many buyers have waited in vain for the “month” they were promised as soon as the cryptocurrency went public. portal.
However, what is not discussed is the main reason why we observe this phenomenon, and what crowdsale participants, including rating companies that most of us rely on to make choices, have to do wrong by choosing which ICO has the greatest value, or has the best chance of rising in price after the crowdsale is over.
While there are many reasons that can legitimately be suggested for this phenomenon, there is one fact that I believe is more responsible for this than most other controversial reasons: the evaluation of ICO tokens and the inappropriate focus on “ blockchain experts ”,“ ICO consultants ”. ‘or’ Technical whizkids’ for erc20 tokens.
I have always believed that the need for blockchain technical experts or ICO technical consultants is exaggerated or even completely inappropriate when a project is evaluated against these criteria, unless the project tries to create a completely new concept of coins. For most ERC20 tokens and coin capitals, a really important aspect should be the business plan behind the token, as well as previous managerial positions and profiles of team leaders.
As anyone involved in this industry should know, creating an ERC20 token from Ethereum or similar tokens from other cryptocurrencies does not require great technical skills and does not require any overestimated blockchain consultant (in fact, with the new software, the ERC20 Token can be made in less than 10 minutes by a complete technical beginner.
So technical should no longer even be a big issue for tokens). The key should be a business plan; level of business experience; the competence of project managers and the business marketing strategy of the parent company to raise funds.
Honestly, as a lawyer and business consultant with more than 30 years of experience in several companies around the world, I can’t understand why people are looking for some Russian, Korean or Chinese “Crypto Whiz” or “Crypto Advisor” to determine strength. ICO. for what is mainly a crowdfunding company for the BUSINESS CONCEPT …
I hold the strong view that is one of the main reasons why most ICOs never justify the hype before launch. In an era where there is a large amount of software to create tokens, platforms and freelancers, disproportionate attention to blockchain experience or the technical abilities of promoters is mostly inappropriate. It’s like trying to gauge a company’s likely success based on the ability of its employees to build a good website or app. This train left the station long ago with the proliferation of technical hands on freelance sites such as Guru; Upwork, freelancer and even Fiverr.
People seemed too obsessed with the hype and technical skills of the people promoting the ICO, particularly tokens based on ERC20 Ethereum, and then wondered why the technically best Russian, Chinese or Korean guy couldn’t finish the campaign after the fundraising campaign.
Even many of our ICO rankings seemed to devote a disproportionate amount of points to the team member’s crypto experience, the number of crypto-advisors and the ICO success experience they have on their team, instead of focusing on a core business model to be created with the funds raised
Once you realize that more than 90% of crypto and ICOs are just tokens created to raise crowdfunds for an idea, not a token for a token, then people’s focus will shift from the technical side to more relevant valuation work. the business idea itself and the corporate business plan.
Once we move into this era of valuation, before deciding to buy or invest in cryptocurrency, we will begin to assess the future prospects or value of our tokens based on sound business considerations such as:
– Swot-analysis of the company and its promoters
– Managerial competence and experience of team leaders
– Reliability of business ideas beyond token creation
– The marketing plan and strategy of the company to sell these ideas
– Ability to supply basic products to the market
– Customer base of products and services to be created by the company
– and a basis for forecasting market acceptance
Most people fail to realize that the potential for increasing the value of their tokens after an ICO depends not so much on something technical as on the good things happening in the fundraising campaign and the expected value increase of the company as it unfolds its business plan and delivers their business products.
Of course, buying cryptocurrency is not buying stocks, and it is not buying security in any company. We understand this, but tokens react in much the same way as stocks react to good or bad news about a company. The only difference is that in the case of crypts the effect is increased 100 times.
So when a company meets some financial or business milestone, the price of its token on the exchange will rise … and fall rapidly when nothing good happens. Therefore, what the company will do and how it will do it after the ICO should be of paramount importance to those who do not want to see the value of its tokens fall sharply and remain forever.
Of course, tokens, most tokens will fall sharply as soon as the tokens hit the cryptocurrency after the ICO, due to those who want immediate profits, but whether it will ever return to give you the expected multi-valued profit will always depend on criteria. I have already outlined above. Once you’ve purchased a token, the cost of “crypto-advisor” and “technical tricks” is reduced to zero relative to the potential of your tokens to the moon.
Based on this reality, I think a smart buyer or crypto investor should focus less on the number of crypto advisors in the project or how technically sound the team is (if the company’s core business isn’t technical) and focus more on leadership, marketing and potential client the base of the company that raises funds through the ICO.
In other words, spend more points on ICO business and management, rather than on technical jargon that won’t help your token market once the money has been raised!