As we are in the midst of the blockchain era, cryptocurrency is being regarded as the next frontier in the world of finance. An ICO or Initial Coin Offering is a way for companies to raise funds or capital through cryptocurrency. A digital coin or token is launched by companies to sell to investors in exchange for cryptocurrencies like Bitcoin or Ethereum.
ICO development solutions hold the key to success in the crypto platform. While hiring, an ICO marketing firm can help launch an ICO successfully, there are certain things that business owners need to be wary of before starting.
- Don’t Start an ICO, Based on a Bad Idea
Before launching an ICO, it is essential to take out time to understand not only the market needs from the business perspective, but also spend substantial amount of time understanding the blockchain technology. A major mistake that most businesses make is that they rely solely on their great business idea and do not recognize the limitations of the technology at all. This is the reason why they consequently fail to make clear estimates and projections about their business, and are disappointed when their plans do not materialize the way they had envisioned them to. The ICOs that they launch are not really able to deliver on their tall promises since their business idea is inherently flawed and is not based on real facts. If you are an entrepreneur looking to enter the ICO market, make sure you have a deep bench, a solid business model, and developers who are experienced in providing ICO development solutions based on their experience in blockchain. These few points will help you stay head-to-shoulders above your competition.
- Prepare Your Token to Survive the Pump-and-dumps and High Volatility in the Market
The altcoin market has been subjected to wild swings and high volatility since its inception, and the ICO teams are not entirely to blame. Certain pump-and-dump groups raise the cryptocurrency’s value artificially in order to make a profit by selling them at a higher value. This is the main reason why the cryptocurrency market is considered as a very dangerous place for investors who lack experience in the sector.
Exit scams in this case are of no help. Additionally, cryptocurrency market is a whole new asset class, which rises and falls in proportion with the Bitcoin. This means that whenever bitcoin is up, everything goes up, and vice-versa.The way this plays out in practice is that every ICO, as soon as it is launched, sees a large pump in its price that on the surface looks very promising. However, the price of the token collapses just as quickly to a resistance point, which is close to the initial sale price. For anyone who wishes to enter the ICO market, these things are very important considerations and learnings. A game plan keeping the pump-and-dump stage in mind can help preserve the value of your token during turbulent times. The long-term value of token is dependent on the actions taken by you. Strategies like token burning, token buybacks and airdrops can help preserve value.
- Know that This is the Right Time
Considering the state of the current bear market, the ever-increasing number of ICOs, and the continued uncertainty of regulations, most business owners think that the time for starting an ICO is long over. This is not true. In fact, this is the best time to get started.
Blockchain is a growing, maturing technology that has too many potential uses which are being discovered daily. ICO content writing services have only lightly touched upon most of the use cases in ICO white papers and road maps. None of the use cases have yet been fully explored and are still at a very nascent stage. Cryptocurrency is wrought with its own set of problems that need to be urgently solved. Nearly all cryptocurrencies and tokens suffer from high volatility and unpredictable price swings because they aren’t backed by real assets. Making the whole concept more stable so that it effectively revolutionizes finance sector is an ongoing process.
- Be the Early Bird to Catch the Worm
Just as it happened with the internet in the 90’s, early adopters and early movers set themselves up for success for the next few decades just by being in the right place at the right time. Blockchain has immense potential in every sector. While the most pressing problems of cryptocurrency are still being worked upon, and the potential of blockchain has not been fully leveraged to improve or revolutionize any existing industry, it is still a great time to dive in and reap the benefits of starting early.
A crucial step while launching an ICO is to spend valuable time on making a scalable, secure, and robust product on the blockchain even though the product can be built after launching the digital token.
In order to be fair to the early investors in your ICO, make sure you follow the roadmap that you have created for the product development, as many investors will be waiting for the product release as per the provided timeline.
The holiday season is the best time to work upon the finer details of your project so that you are prepared and can start the New Year on a strong note. As businesses shut shop to go into a holiday slumber around Christmas and New Year, take out time to arm yourself with better research and information, a great team, and data on the right investors to follow up with before pitching your idea at the start of the New Year.
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