Initial Coin Offering (ICO) is an unregulated means by which a company raises funds for a new cryptocurrency venture. The ICOs bypasses the complex and regulated capital-raising process adopted by banks and venture capitalists, thereby increasing the risk for the investors.
The working of ICO is similar to that of IPO issued by companies. Whenever a cryptocurrency firm needs to raise money through ICOs, it designs a plan on a whitepaper which gives details about the project, like how much capital is needed to complete the venture, what will be the duration of ICO campaign, about team and their description, etc. The supporters of the startup firm will buy their crypto coins with virtual or fiat currency. These coins are known as tokens and are like shares of a company offered to the general public for subscription.
Earlier, the people were motivated to buy the tokens in the hope that if the project becomes successful it would lead to a higher value of crypto coins purchased by them, which will ultimately increase their wealth. But in recent years, many ICOs startup firms have been exposed which are fraudulent. The ICOs are not backed or regulated by regulatory authorities like Securities exchange commission (SEC). So once an investor loses his funds due to fraudulent activities of crypto startups, they may never be recovered. Therefore, people started doubting these fund-raising operatives.
Facebook has banned all the advertisements related to cryptocurrency, including Initial Coin Offering and Bitcoin because they are often associated with deceptive and misleading promotional practices. There are many companies which are advertising ICOs and cryptocurrencies that are not operating in good faith. These ads can make people vulnerable to various scams and frauds. However, this decision is not permanent and Facebook will reconsider its policy of banning the advertisement of cryptocurrencies once it gets better at detecting and eliminating bad ads.
A very interesting point to note in this regard is that the US citizens cannot participate in ICOs untill and unless they are not Accredited Investors. If you have recently invested in ICOs, you might have been intrigued by noticing that how these ICOs are not available to US citizens. However, one can easily bypass the preventive measures.
The area of cryptocurrencies is a fast-moving and an exciting one. Every day a new crypto coin is released in the market. With so many crypto projects in the market, you have to make sure that your ICO is properly branded, which can guarantee the success of your product. In this regard, marketing of your product is an integral part of success which should not be overlooked
In order to make your project a success, you should seriously be in touch with your target customers and try to understand them. There are many crypto seminars, conferences and meetings being held everywhere now – so get out of your office and attend them! By attending these events, you can test your idea by asking various blockchain and cryptocurrency enthusiasts if they are interested in your solution that you offer to an existing problem.
There are many forums like Reddit.com and Bitcointalk.org where you can build your community. You should discuss what the prospects of your project are and how people can benefit by buying your ICOs, what’s new in the cryptocurrency world, etc. By participating in these conversations you can generate your presence, make them believe that your ICO is legitimate which can encourage the investors to invest in your project
Always mention the details (including the Linkedin profiles) about the founders and other team members of the ICO team on your website. It establishes some trust in the mindset of those investors who may know any of your team members.
Although Facebook has banned the promotion of cryptocurrency projects on its website, still there are many other social platforms available where you can promote your product.
Email is the finest mode of communicating with each other which is available to the mankind for over 20 years. You should make a list of the emails of the potential investors and regularly send them the updates and innovations regarding your project. This can make your brand much stronger and influential.
There are plethoras of marketing agencies that can promote ICOs in a most effective way. Some of these are:
Websites which posts latest news and updates about Bitcoin, Cryptocurrencies, Blockchain Technology (like KryptoMoney.com) etc plays a crucial role in informing and educating about cryptocurrency traders/investors. Reach out to them and discuss your project with their team.
Entering into the sector of cryptocurrencies and launching your own ICO can be a tough challenge, but if you have a good marketing strategy at your disposal and a strong will, you can achieve your goals effortlessly.
While the loss of Facebook as an advertising platform is huge, but this doesn’t mean that you cannot promote your ICO. If you have a unique idea, a strong team of people and a genuine offering you can use any of the above-mentioned platforms for promoting your ICO as the most important part of promoting any cryptocurrency startup is obtaining the trust from the community.
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology , Cryptocurrencies and upcoming ICO’s.
Prarit Singhania
Prarit Singhania is a commerce graduate and is a Technology enthusiast. Working as Sales Manager in Pharma Co. in Day and a tech-writer at Night. Prarit is also a financial trader who invests his time and money in stocks and crypto-market. Prarit believes that blockchain technology will soon have a remarkable impact on traditional businesses, government, and even in our day to day life.
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