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Successful ICO...............Necessary Components of an Ideal ICO Proposal

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The concept of crypto digital exchanges providing a second-tier window for the trading of tokens are the main reason why tokenization and ICOs has become very popular.  The investor knows that sooner than later, the token issued to him can be traded on the digital exchange for quick return on investment.  

Fireinthebone reliably gathered that investors holding huge portfolios have had to invest in ICOs that they consider good, not for the dividend or being on their board, but for the fact that the token will be listed for trading as soon as the offer closes.  The last time I researched on newly listed tokens, I discovered that some ICOs were already introduced to an exchange even before their ICO closes and within two days to one week thereafter, the token are listed for trading.

The opportunity of a second-tier trading window is the real reason behind the success of the ICOs.  However, the market will have to judge the ICOs... The good ones begins early to attract money as the public buy the cryptos, while others may take a while before they begin to gain acceptance. This is why a failed ICO is one it token falls shot at the exchanges, meaning that investors into such ICO will have to wait for a long time before recovering their investment.

This is why Tokenization is currently a very popular concept in the Blockchain industry as a result of the numerous products that are being created on the Blockchain with almost every innovator finding ways of implementing Blockchain into their existing products or creating something entirely new from a fresh idea on the Blockchain.

Another reason reason for the growing popularity of tokenization is the convenience that it brings in quantifying and managing assets of any given product. When assets are tokenized, value becomes easy to trace and access. This makes it easier for existing businesses and startups to quantify their products for effective administration.

Yet another strong point for tokens is in the area of crowdfunding. The token sale is currently popular in the Blockchain industry, mostly in the form of Initial Coin Offering (ICO). Developing businesses and startups have found token sales and ICOs to be convenient ways of raising capital for necessary expansion or development, especially with the absence of regulation and global reach of the concept - the ability to receive funds from any location across the globe.

There are thousands of token sales that have been executed or are still ongoing in the Blockchain industry. Some have registered very successful figures and gone ahead to establish viable startups while others have struggled. The difference between these two groups most often depends on the quality of their token sales. These qualities usually depend on the various components that make up the token sales and its execution.  

Factors to consider for an ICO -  Christopher Franko, CEO of Borderless Tech, the owners of TokenLab.io tells Cointelegraph that the first thing that anyone needs before embarking on a token sale is a good idea, preferably in the form of a working product. However, for some projects a good business plan or whitepaper that details an idea has been good enough to base an ICO upon, although without a product it’s going to be an uphill battle.

Secondly, a solid team is needed that can execute the plan, and deliver the software or service as promised. Having industry advisors doesn’t hurt either.

The third important component according to Franko is a good marketing team and a starting budget, because any product that must be seen is going to cost some initial capital.

Neglecting these details or not paying serious attention to them has been identified as the main reason for most token sale failures.  

According to him - “ICOs fail because the person hosting them didn’t account for an unseen force, either they didn’t market to the right people, their forecasts were wrong, or maybe the market just didn’t like their product. That’s not the end of the road though. Just tweak your product, fix the flaws and then come back and try again. Most importantly don’t give up. If you have a solid product that people would use, then just keep building and sooner or later it should catch on.”

Considering the above scenarios, it can be understood that some failed token sales may not be as a result of a completely bad product. Any of the above stated requirements could be responsible for a project not to attaining the expected level of success. For instance, a brilliant idea with the right team but a wrong marketing approach could lead to an unsuccessful execution.

The need for regulation and strict adherence to prescribed guideline is needed NOW more than ever before, to provide guideline and help nurture this nascent idea and allow it to develop.  The good News is that relevant authorities are about now doing something.

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