Over the years, the Merkle has covered the launches of countless initial coin offerings. In this article, we will cover three tips that you should keep in mind to make sure that the first ICO you run is a success.
So you have a great idea for the blockchain sector, you’ve got a plan to make it happen, yet you lack the financial resources to do so. Startups often face this predicament, yet with the rise of ICOs, raising money through crowdfunding is no longer difficult. After all, the first half of 2017 saw US$1.5 billion worth of investment in ICOs, compared to just over US$200 million in all of 2016.
1. Take your security seriously
Holding an ICO means that you likely have access to capital resources. This instantly makes you a target for hackers and extortionists in the marketplace. To be safe, make sure to use random and secure passwords for all your accounts, and only share them with trustworthy employees who use the very best security practices. It is often recommended that you avoid keeping your raised funds in an online wallet, as these are much easier to breach than other types. Ideally, invest in a hardware wallet, which you can use to access your current wallets and/or store your funds.
2. Clearly explain the benefits of purchasing tokens
The ICO market is very different from Kickstarter and Indiegogo, where users often back projects without expecting anything in return. ICOs are investments for token buyers. Therefore, to ensure that you raise enough capital, make sure to clearly and thoroughly explain all the benefits associated with purchasing tokens. List all rewards, and be transparent as to what the purpose of the tokens will be. It’s also smart to be as transparent as possible in stating how the raised funds will be used to power up your project.
3. Invest in smart marketing
The beauty of ICOs is that they have begun to attract more and more investors from outside the cryptocurrency space. Therefore, avoid listing your ICO strictly on digital currency forums and niche websites. Rather, attempt to market your ICO to broader segments of the investor market. However, when you do this, make sure to effectively target your campaign. You can’t expect to use technical terms and have someone who never used a blockchain network understand what you’re trying to say. Therefore, use different words for different audiences.
The above tips are likely to give your initial coin offering a little boost, thereby ensuring a successful crowdfunding campaign.