There is no doubt cryptocurrency has been gaining a lot of attention recently, especially due to the stamp of approval given by the Chinese president and an unexpected subsequent crackdown on crypto exchanges and ventures in the area. As rightly noticed by people, many companies are now starting to see the possibilities of their applications in different sectors. Blockchain Technology is starting to gain the recognition it deserves, therefore to have a cryptocurrency based project is also becoming very interesting. Many must be dreaming of creating such a project and collect offerings from the public to execute it- they want to create an Initial Coin Offering. ICOs may sound like fun and easy to launch projects because of the cryptocurrency hype at the fall of 2017.
But now, ICO remains a hard tug to contend with, because it has been used by unscrupulous people to rip people off their money without delivering anything. This hit hard on the genuine ones as many today are struggling to stay afloat. Many ICOs failed not because they were scams, some had good visions or plans, but because critical aspects were overlooked.
ICOs or Cryptocurrency projects are beginning to gather momentum again. We feel the need to give out some nuggets of wisdom, especially to those who are beginners who wish to conduct their own ICO. Starting an ICO is not the same as sustaining it. The few points we will discuss in this article are core to keeping your project strong for a very long time. Care to read on.
An innovative vision or solution with pure market opportunity (a real use case)
This is the most important. Many cryptocurrency projects fail woefully at this stage. Carlos Oporto identified that many cryptocurrencies do not have a real use case. He said,
I wanted to create an innovative videogame platform, and blockchain technology was the perfect fit. I saw opportunities in 3 different markets:
1. Cryptocurrency: Many currencies do not have a real utility or a platform to spend them in…Carlos Oporto
To have a groundbreaking project, you must look at the basic problem people face and proffer a solution to it. You must have studied the market thoroughly to know if people will embrace your solution.
Even after you have gotten your solution, be creative. Sometimes the most accepted project may not be the original owner of its innovation. Successful projects make it because their teams are pretty creative around innovations. After you have made public your solution, you can be sure that others will come and present almost the same solution, so you have to be creative. And you have to be flexible enough to access other aspects of your solution, without forgetting to be rigid enough to follow your core objective. You must have one, but the ways to genuinely reach it are many.
Have a solid Crypto Experience
The cryptocurrency space is quite different from the physical business space. They work in different ways. That you have been very successful running your physical business doesn’t mean you’d be successful blockchainizing it– it’s a different ball game. The best way to gain enough crypto experience is to join others to build their crypto projects. A popular saying goes like this: “If you are careless in handling what belongs to others, who will give you what is yours”. Join others to see their vision come to fruition, you can be sure yours too will be successful. While working for others, the crypto experience will seep into you.
A very good example is Carlos Oporto, Wunbit’s CEO and founder, he has been into Cryptocurrency for sometime before he began to build his own project. He has had engagements with different companies in the same sector he is launching his solution. Crypto experience will save you a lot of stress.
Have skillful team members who strongly believe in the founder’s vision (and who are friends)
Joining others to help them build their crypto project can bring you close to them as friends. On the crypto space, it is possible to build a circle of friends who have never met, physically. Don’t be restricted to people you have known and trusted before, be willing to make new friends through different channels – you’d be surprised what people can be capable of.
‘You get whatever you are looking for. If you are looking for friends, you’ll get them abundantly, but if you’re scared you’ll get enemies – sure you will.’ Anonymous
Not just friends, but skillful and experienced professionals, too. When you relate to people, by judging from their past and present jobs you can easily determine if they are suited to meet the project’s standards. You need friends as team members so they’ll be there for the project’s sake, no matter what. If you strictly happen to hire professionals, when things go a little sideways- they will bail out. Your team (friends) must be people who trust you and strongly believe in your vision.
Have a solid Marketing Plan
Making a solid project is the same as promoting it. Your marketing plan will showcase the beauty of your project, and it should utilize the best options available with minimized cost and actual returns. You can use centralized means (Google Ads, video, banners, etc.) to promote your project and decentralized means (bounties). Good organization of both means will yield a great reward. Your project will gain the attention it needs to make sales when you have a solid marketing plan.
Experience in Sales
As the founder of your project, you must be proficient in sales. Turning leads into customers is a great deal and you (and your sales team) must understand how to do it. Organize meetups to prove that your project is genuine, then use these events to sell your product.
Have a strong concept of project management and a clear road map
As a founder or visioner, you need to possess experience, knowledge, and understanding of project management. There are few applications that can help you monitor and execute and manage assignments and projects, you need to have them and use them effectively. You also need to teach these understandings to your team members. Set clear cut goals and visions and efficiently work towards achieving them.
Make sure your road maps are clear, concise, reasonable, and achievable. These will prove to your customers how committed you are to achieving your goals.
Manage Customer-Project relationship effectively
The community you build around your project is very important. Sometimes people can be overbearing when things turn sideways. Be patient and communicate effectively with your team and your community. Crypto communities are very powerful, they can make and break your ICO or project. Be very wise, don’t talk angrily to them. Even if they anger you, find some time to cool off. Communities are very sensitive and they can defame your project at an early stage. Some members can be unreasonable, speculative, and imposing, you must be wise enough to deal with them all.
Communicate from time to time with your community and don’t be around too much, (you could pass for a spammer) or too less. (they could feel abandoned)
Launching an STO or IEO
Launching STOs (Security Token Offerings) is a little different. You need a strong knowledge of the law governing STOs with suitable and qualified personnel to handle compliance with the Security Exchange Commission (SEC). Creating a smart contract suitable for a security token needs much scrutiny else it’ll be debunked by the authority (SEC). SEC has standards which must be followed and qualifications for any security token (check here for more details). You must study these rules very well and make sure to understand them. This understanding will help you to know what skill sets you’re looking for in a developer and your legal team. This makes a major difference between an ICO and STO. You can read more about launching an STO here.
For IEOs (Initial Exchange Offerings), the collection of funds is done by a crypto exchange. This can be quite easier as you do not need to build a crowd sale website. Also, the exchange that will perform the IEO will conduct due diligence on your project and team members. This is done to preserve the reputation of the exchange. Launching an IEO is almost the same as launching an ICO, the major difference being the mode of collection of funds which is via a crypto exchange in IEO’s case. You need to look out for a suitable exchange to launch your IEO. You might consider using multiple exchanges or using a mix of IEO and ICO.
Take all these points seriously in your planning process to make your ICO a successful one. At Wunbit, we have considered and followed the steps we stated, we are always looking for opportunities and potentials in different areas like in ICO and IEO. Bringing profits and incentives to our customers is our goal and we are diligent at working it out.
The blockchain and cryptocurrency space is far from exhausting its full potential and still harbours unexplored areas for business growth. The cryptocurrency market capitalization against the stock markets shows that there is still a long way for cryptos to go. There is more room available for new groundbreaking innovations, ICOs, STOs, and IEOs than ever. Learning the nitty-gritty for launching such a project may not seem easy at first, yet anyone with the right mindset can make it happen.
Join our private sale to enjoy 50% more WUN tokens as early adopters. You can also join us to propagate our good news with our Referral and Ambassador program to get rewarded and gain huge experience on how to launch your own ICO or IEO.