Statistics can no longer be ignored. Most tank ICOs, and remain tanks, once the crypto exchange tokens arrive, after the worry and ‘FOMO’ attending the crowdsale is over.
Most of the watchdogs following the surprise of the ICO generally agree that the trend of the past few months for ICOs to lose value after the crowddsale, with many buyers waiting for nothing purely for the ‘month’ promised to them, once the cryptocurrency hits a exchange portal.
Whatever is not mentioned is the main reason why we witnessed this event, and what participants in a crowd, including companies with ratings that most of us are trusted to choose from, should make the mistake of choosing which the most valued ICO, or have the highest probability of raising the value once the crowdsale is over.
While there are many reasons that can legitimately provide for the event, there is a fact that I think is probably more responsible for it than most other conflicting reasons: Valuation of ICO tokens and incorrect emphasis on ‘blockchain experts’, ‘ICO advisors’ or ‘technical whizkids’ for erc20 tokens.
I always think that the need for technical blockchain experts or ICO technical advisors is exaggerated, or even in the obvious wrong placement, if a project is judged on those criteria, unless the project is real trying to create a new coin concept. For most ERC20 tokens and copycat coins, the real important consideration should be the Business Plan behind the token and the managerial antecedents and executive profiles of the Team leaders.
As anyone involved in the industry knows, creating an ERC20 token from Ethereum, or similar tokens from other cryptocurrencies, does not require any good technical skills or requires any excessive blockchain advice (as a matter of fact, with new software out there, an ERC20 Token can take at least 10minutes for a complete technical newbie.
So technically it should no longer be even a big deal for tokens anymore). The key should be the business plan; business experience level; competence of project leaders and business marketing strategies of the parent company that collects funds.
Honestly, as a Lawyer and Business Consultant who has been with me for over 30 years in many companies around the world, I can not understand why people keep looking for some Russian or Korean or Chinese ‘Crypto Whiz’ or ‘Crypto Advisor’ to find out the strength of an ICO for what the basis of a crowdfunding campaign for a BUSINESS CONCEPT is …
I have a strong opinion that is one of the main reasons why most ICOs never survive their initial hype. In an era where there is an abundance of token software, platforms and freelancers, the unequal focus on the blockchain experience or technical competence of the promoters is largely lost in place. It’s like trying to value the potential outcome of a company based on the ability of its staff to create a good website or app. That train left the station long ago with an increase in technical hands on freelancing sites like Guru; Repair, freelancer and even Fiverr.
People seem to have reached the hype and technical qualifications of the people promoting an ICO, especially the tokens based on ERC20 Ethereum and later wondering why a Russian technology is so good. , Chinese or Korean will not be able to close the company’s business after the fundraising campaign.
Although most of our ICO Rating companies seem to be sharing an unequal number of team member crypto experience points, how many of them have a crypto advisor, and the ICO success experience is in their team, rather than focus on the underlying business model of what is done with the collected funds
Once one understands more than 90% of the cryptos and ICOs there are simple tokens created to gather crowdfunds for an idea, and not just a token for the benefit of the token, then the we as people move from technical angles, to more relevant evaluation work. the business idea itself, and the corporate business plan.
Once we move into this period of evaluating before deciding whether to buy or invest in a cryptocurrency, we will begin to value the future prospects or value of our tokens based on good considerations of businesses such as:
– Analysis of the company’s Swot and its promoters
– The ability to manage and experience team leaders
– The strength of the business idea goes beyond creating a brand
– The marketing plan and strategy of the company to sell those ideas
– Ability to deliver underlying market products
– The customer base for the products and services to be made by the company
– and basis for adoption of market project
What most people are unaware of is the potential for their tokens to raise the pole of ICO value not so much relying on any technical but on the good things that have happened to the company that is raising funds and seeing that increase the company’s valuation as it rolls out the business plan and delivers business products.
Of course, buying cryptocurrency is not buying stock, and it is not buying security for any company. We got that, but the tokens reacted similarly to the reaction of stocks to good news or bad news about a company. The only difference is that in the case of cryptos, the effect is magnified by 100 times.
That is, if a company encounters some financial or business cause, its token price will in turn rise … and it will rapidly decline if nothing good happens. So, what the company will do and how it will be done after the ICO should be most important to anyone who does not want to see the value of his Token dropped and remain forever.
Sure, most tokens will not fall once the tokens hit a crypto exchange after the ICO, due to the desire to earn immediate income, but if it does come back to give you the expected maximum income always relying on the standards I have outlined above. After you purchase a token, the amount of ‘crypto advisor’s and’ technical whizkids’ will go to zero relative to the potential of your tokens of the month.
In light of this reality, I think a wise crypto buyer or investor should be less focused on how many crypto advisors a project is or how technical the team sounds (unless the company’s underlining business is technically natural) and focuses primarily on the management, marketing and potential customer base of the company accumulating funds through an ICO.
That is, spend more points on business and ICO management than technical jargon that will not help your token in the market when money is accumulated!