No doubt, ICOs marketing expenses are too high nowadays, and not every start-up can afford it. An army of ICO marketers and PR specialists propose to promote ICOs for a lot of money: $300K, $500$, $1M, and even more. Are they effective? Not always. The recent research discovers that most marketers know little about blockchain technologies and tokens sale methods. And worse, they cannot see the writing on the wall and continue to perceive ICOs as low-hanging fruits in spite of the tightened regulations and declining market. Please glance at the fresh figures: the total amount of funds collected by ICOs in 2018 decreased dramatically as a result of changed investors’ position: they start thinking of ICOs viability.
Under the circumstances, conducting ICOs marketing campaigns is going to be an uphill battle, ICOs organizers are getting frustrated and being about to throw in the towel. However, one should not lose optimism due to the fact that the ICO bubble has blown out because experts suppose the ICO world is becoming more mature in 2018 and more traditional investors get involved. Instead of the ICO marketing newspeak, such investors employ “a classical” investment management lexicon, talking about “proper due diligence,” “professional business models,” and “feasibility reports.” It not the end of crowdfunding, but the beginning of a new epoch for better-structured ICO projects with good business models to attract investment.
The investors return to circulation a well-forgotten word “business plan,” asking for a higher level of transparency. To really start off an ICO on the right foot, we have to take into consideration the current realities:
All of the sudden, ICOs founders find out that managing an ICO is a complex and time-consuming process, requiring organizational, financial and legal skills. They have to show investors a project’s value proposition (if they know what it means). What competitive advantages differentiate an ICO project from incumbents (new data monetization opportunities, Interoperability, verifiability, personalization, and shared resources… anything else?). Do smart contracts really work on a business task? If so, in what way? If ICOs founders have no appropriate figures describing a proposed market and reliable financial projections, investors can assess a project as inefficient or even a fraudulent one.
Today, ICOs founders should be more explicit than yesterday, and rather realistic while explaining a project’s business model. Talking about a business model, they should not forget about start-up costs, a target customer base for a project, competition, risks, marketing strategy, and projections of revenues and expenses. The latter has some special features today:
Now the token economy is under scrutiny not only financial regulators but also investors. They know that tokens have to enable business models and increase the asset turnover within project ecosystems. Today false promises to investors to pay dividends or other profit on investment sound inappropriate. To keep tokens’ monetary value and liquidity, project initiators have to control initial release and distribution of their tokens, providing ecosystem’s participants with an appreciation how tokens are foreseen over time. In this way, the token enables financial management of ICO project and creates better user’s experiences.
And we can see a good example of such a token: Get-token of the GetDoIt project. To be efficient and legal, Get-token’s issue and distribution are properly structured and based on the bespoken GetDoIt financial modeling:
The GetDoIt project initiator uses token network effects to form different internal marketing schemes optimized for certain distribution policies and accessibility through discount and loyalty programs. In this way, the Get-token of ERC20 type interact with and optimize the GetDoIt business model, creating new values, and participating in various ways in important ecosystem functions.
For more detail about the GetDoIt project click https://getdoit.io/investment