Home Articles 39 reasons that may lead your ICO into obscurity

39 reasons that may lead your ICO into obscurity

In the view of the recent drastic decrease of investments in ICOs worldwide, Sergei Kovalev, CEO of Compliance.Finance.Sales came up with a list of do nots for ICO startupers and shared it with BitNovosti for exclusive publication:   

1. You have not explored the examples of successful and unsuccessful projects before getting ready to start an ICO of your own.

2. You are launching an ICO with a budget below  $500 000.

3. You think that you will be able to prepare ground for a quality ICO campaign from scratch in less than 3 months.

4. You are starting an ICO in hopes of making some quick cash, not to implement your business idea.

5. You and your team are not going to run pre-launch ICO simulation to make sure everything is working just as planned.

6. You cannot find an answer to the question: “How exactly am I going to apply blockchain in my project?”

7. You cannot find a brief answer to the question: “How is my project to make this world better?”

8. You have omitted incorporating your company and funds verification.

9. Your company lacks complex compliance program.

10. You are to do without marketing, because your idea and/or your team is unique, and investors can’t wait starting showering you with money once you launch your ICO.

11. You are not going to bother about more or less consistent market and competitor analysis.

12. You do not care about developing your product prototype before launching an ICO.

13. You haven’t prepared and published such documents as: WP, Road map, FAQ, Privacy Policy, Token Sale Agreement, Terms of Service, Cryptocurrency Manifesto.

14. You have no financial model for your ICO at all, or the model you have was not subject to expert auditing.

15. You spend most of your funds on product development, while disregarding marketing and PR.

16. You believe that marketing agency will do all the job for you, and all you have to do is to sip cocktails on a seashore and supervise.

17. Either you have no smart contract at all, or it is not published, or there was no audit.

18. You have no idea about the practical use of your project tokens, or such usage is not thought out well.

19. You’re not going to lock tokens before the ICO closure, so that investors would not sell them too early.

20. You believe that you will be able to cover all the expenses with tokens.

21. You think that you will be able to find professional contractors whom you will pay from the funds raised.

22. You are not going to publish any information about your team and project advisors.

23. You haven’t developed a founders’ brand, having focused on ICO branding instead.

24. You believe that sending the information about your project to rating agencies and paying experts for high ratings will be enough.

25. You pin your hopes on the “word of mouth” and rely solely on your personal network of contacts.

26. You rely on the positive effect from a Roadshow too much.

27. You do not care about focusing your efforts on project-related community development before you launch your ICO.

28. You do not bother with providing feedback to your community.

29. You are using only one-way communication channels, such as Telegram, which do not leave any room for open discussion of your project.

30. You expect to reach your financial goals at your investors’ expense without launching a public token sale.

31. You exclude investors from South Korea, China, Japan, Singapore, USA and other countries for any sort of reasons, thus losing potential funding.

32. You create your ICO company in a country with strict laws and ICO regulation.

33. You hide funds you’ve raised from investors at any stage.

34. You are unwilling to hire experienced ICO advisors and disregard their advice.

35. You have no operational plan for your project.

36. You conceal any and all important information about your ICO.

37. You haven’t prepared and/or published the project development strategy upon the completion of your ICO.

38. You haven’t compiled the list of exchanges ready to list your project token, or failed to arrange the listing.

39. You are not planning to do any market-making.

Conclusions

If you realize that you’ve made a half of the flaws or more from the list above, you are on the right track to bury your ICO in obscurity.

If you still care for your project’s success, we strongly recommend that you examine this list once more and take all the measures necessary right now, when you still have enough time and resources to remedy the situation. Remember that even a few points from the list may influence the outcome drastically, and not a piece of information above should be neglected.

It should be noted, that it is all not just about successful fundraising through ICO, but coherent planning and organization of further steps as well. Such kind of activity involves communication with users and investors, post-ICO marketing and PR, maintaining token liquidity, verification of funds and other aspects.