After advertisement regarding cryptocurrencies being banned by Facebook, what should be the marketing strategy of crypto startups and ICO issuers?
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.
Why Facebook banned the advertisements related to Bitcoin, Cryptocurrencies or Initial Coin Offerings (ICOs)?
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.
What should be the marketing strategy of ICO startup firms: How to promote ICO efficiently?
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
Here’s a guide on how to promote your ICO efficiently:
Get in touch with potential investors
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.
Aim at community building
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
Team Behind ICO
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.
- Twitter: With over 300 million users of Twitter, it would not be wrong to say that the power of twitter as a marketing tool is huge. You can easily find your target users and communities and control the ongoing conversations on Initial Coin Offerings (ICOs). You can easily get the attention of the required audience by using the right hashtags. You can also target the influencers by using @ symbol. At last, Twitter is the best place for building your cryptocurrency community by giving and taking advice, tips and, opinions.
- Reddit: Reddit is the nucleus of the cryptocurrency world which provides you a brilliant platform to promote your product. You can also receive vital feedback about your project as well as answer the questions of the users. This kind of platform ensures that your target customers are receiving your message. Some other websites which provide these facilities include Quora and Bitcointalk.
- Instagram: It is seen that ICO’s do not have much focus on the Insta-marketing because Instagram users are generally teenager and students which are not their target investors. However, some ICO’s go for Insta-marketing by targeting a specific group of people.
- Facebook: Facebook has banned crypto-ads but it can’t restrict the individual sharing. So ICO’s run individual campaigns through some crypto influential personality to promote their project at individual level targeting a specific community.
- Google Plus: Google Plus helps you to get better ranking of your ICO website on google.
- Linkedin: Linkedin ads offer better targeting in case your potential investors are designated personnels.
Make an email list
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.
Specialist marketing agencies
There are plethoras of marketing agencies that can promote ICOs in a most effective way. Some of these are:
- Belkin Marketing: It is a Hong Kong marketing agency, having ten years of experience in the world of cryptocurrency. They offer a variety of services which include ICO community management also. So, it is a good option if you need a helping hand for promoting your ICO.
- ANCHOVY. It is a digital marketing agency based in Dubai, Amsterdam, Malta. They are considered experts in promoting the ICOs. They undertake aggressive advertising campaigns by utilizing their expertise in SEO, PR, content writing, and advertising which will definitely give you a marketing advantage.
- Byzantium: It is also specialist marketing ICO agency, based in Russia, which provides branding and community management to those who are planning to launch their own ICO. They have huge experience in cryptocurrency sector and have a record of giving amazing results.
Cryptocurrency News Websites / Cryptocurrency Bloggers
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 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.