ICOs make it easy to raise funds today. But its success largely depends on many factors. Below are a few reasons why new ICO offerings fail.
Today, ICOs are more available than they were last year. The previous year started the trend that will make more waves this year. Companies with an idea can launch their ICO and use it to raise capital. But here are some reasons why ICOs fail.
1. Your Offering Doesn’t Have a Market
More than half of new ICO offerings fail because the service or product doesn’t have a market demand. Before launching an ICO ensure that you find an audience base for it as well as a real need for the offering.
Also, the idea has to require a token-economy. A lot of ICOs are selling tokens just for raising money. These projects may fail as time goes by. If they don’t, SEC may catch up with them soon.
Potential users want to see projects that have a defined market as well as future utility. Decentralization is the main goal of blockchain-based services or products. It also aims to give users control. If the offering doesn’t offer these things, it may fail.
2. Poor Brand Identity
Lots of people decide in seconds, and the way a brand looks says a lot about your project.
If the crucial elements of your enterprise are half-baked, potential users will question the target. Before starting, try to secure private investment or invest with your personal funds and get a good whitepaper, website, and accompanying content.
These projects are about marketing and branding as well as technology. Invest in brand building because perception sells.
Also, note that your brand represents your offering, so take time to build great brand identity.
3. Poor Marketing Content and PR
During the ICO, PR and good communication are crucial. Some brands fail to consider this factor, and it affects the ICO in the long run.