Many of us have smashing ideas, and ideas we think would change the world. Maybe, we all think in such a way that those ideas could become the next Apple, Google, and Amazon.Ideas are great, but what separates a successful startup than the unsuccessful ones is the ability to execute those ideas or raise enough capital to get the project rolling.
Thanks to the Blockchain and Crowdfunding techniques, people are building their ideas behind an ICO to raise millions to start with. ICO stands for Initial Coin Offering,is a fundraising mechanism in which crypto tokens are sold by new projects in exchange for Bitcoin and Ether. 2017 has been a smashing year for the blockchain industry and seeing the money and success many businesses were ready to launch their own ICO. But, as the industry got flooded with such ICOs and the investors got smarter we saw many ICOs fail.
I have seen many ICOs raise more than $20m, some couldn’t even raise $,1000 and failed miserably.
So why these ICOs fail?
1. Your idea has no real work applications / use-cases
One must have a decent experience and knowledge of the industry, how the industry works,what are the gaps in the market and how your solution can solve those problems. If you want to bring block chain to your industry, try to build use-cases, how the product would work and what value does it bring. One must know and communicate why their solution is better than everything already out there and why no one else has a more appealing offer. One of the most important things that a smart investor will look before investing in an ICO is whether the token will be adopted by the end user. Unfortunately, most of the ICOs are bad ideas from the start which causes them to fail.
2. Unrealistic Objectives and Budget Allocation
The unrealistic budgets and objectives of any new project always put the business in difficulties. The higher you set your objectives, the more budget you will need to achieve them. So, to avoid this, make sure that the objectives of your offering should match the scope of your project. Before going to the public sale, it is ideal to conduct a private sale first if your team is small for an ICO.
3. Lack of industry and technology experts in your team
For a great execution of plan, you need a great leadership and execution. Make sure you chose your team wisely. Some ICOs often make a mistake to go on Social Media and try to get every advisor which puts themselves as Blockchain Advisor. You need to connect with the experts in this area, who have seen projects succeed and fail and try to get as much as knowledge and insights from them.
4. Poor Brand Identity
Lots of people decide in seconds, and the way a brand looks says a lot about your project. Before starting, try to secure private investment or invest with your personal funds and get a good whitepaper, website, accompanying content, and explainer video (one to explain your product, and second to target investors).
These projects are about marketing and branding as well as technology. Invest in brand building because perception sells.
5. No clear Road-Map
Roadmaps are all about future. Here the founders need to show their clear vision and breakdown the project into milestones. Typically, ICO projects list their funding goals on a clear timeline for investors to see. Many of these ICOs often fail to indicate the long-term development plan for the project, which shows the founders are likely to be motivated solely for short-term gains.
6. Lack of marketing, reporting and measurement
Majority of ICO which has failed was launched by newcomers who have very limited knowledge of the online marketing techniques and do not understand the need for continuous online auditing. To avoid this, make sure that you know the traffic you are bringing on to your website, and use tools such as Google Analytics to track conversions. Many successful ICOs are building a strong community for some reason. If you do not believe it, see where the Bitcoin is now.
We at Adbits, adore great ideas and love to bring those ideas into reality. That’s why we have built up a team of experts to help our clients.Share this articles on :
Connect with us to know how we can transform your business with our future proof solutions.