Crypto Business Advisor Shares How Not to Fail ICO Launch
Billions of dollars are pouring into the cryptocurrency space. The demand for decentralized projects is massive, and adoption is growing. Now seems the best time to jump onto the bandwagon before crypto becomes overcrowded.
However, dozens of crypto start-ups rush into the market without doing their homework properly, says business adviser, crypto entrepreneur, CEO and Founder of crypto consultancy firm Cryptexus, Arturas Svirskis.
The crypto professional names a number of critical factors that young crypto projects are not taking into account, which causes them to fail miserably.
Ensuring Unique Tokenomics
According to Svirskis, doing their own homework, finding the best solutions, and ensuring that the framework used in every step is correct are all of the utmost importance for any up-and-coming crypto project.
“The current crypto start-up situation reminds me a bit of the gold rush. Everyone is getting in on the case for the sake of just being part of it, especially in the DeFi space. New projects try to mimic the successful and proven examples, yet most of them burn out inevitably simply because of the lack of strong fundamentals,”
Svirskis explains.
The crypto entrepreneur says that any viable crypto project needs to start off by answering the question of what the market needs.
“How are you different from the competitors? Why are you better? A unique approach to solving real market problems strengthens your positions in competition,”
the CEO of Cryptexus added.
According to him, the tokenomics of projects must be clear and appealing to investors. It is essential to have a thorough description in a project’s whitepaper in order for everyone to have a firm grasp of what the purpose is of a certain project, as well as the strategy and tactics employed to achieve its goal.
“Tokenomics is an incredibly important factor when you search where to invest. Focus on it, provide trusted data and use credible argumentation to explain your project’s potential,”
noted the business adviser.
Establishing a Strong Compliance Base
Another critical mistake of young crypto start-ups is their incoherent attitude towards legal and compliance requirements. According to Svirskis, many new crypto projects do not take into account that the legal basis varies significantly in different jurisdictions.
“Especially in the field of security tokens, the unregistered digital asset security offerings might lead to ongoing legal and even criminal cases,”
Svirskis warns.
He stresses the fact that know-your-customer (KYC) guidelines and regulatory compliance ensure a project’s legitimacy.
“Ignoring the law has no excuses. If you’re planning to operate for a long time, you have to ensure your actions are in compliance with different financial and legal requirements as well as internal policies that protect investors. Their trust is the key,”
he added.
Finding the Right Partners
The crypto space is highly dynamic. Technologies are ever-changing and do so quickly, the industries intertwine, and each of them have their own specifics.
For crypto start-ups, it becomes impossible to navigate different areas at the same time, with the same perfection. Partnerships are of critical importance, yet the risk of partnering up with the wrong ventures is an ever-present issue.
“The right partners and advisors are everything when you are in crypto. They increase your knowledge, experience and resources to create a more valuable product. Partners are associated with you. They become your project’s face,”
Svirskis says.
According to him, a bad reputation could do serious harm to any project, no matter the tokenomics.
Svirskis consults for multiple young crypto start-ups on a regular basis. He notes that he has surrounded himself with a strong and compliant internal team, which is always there to offer support and sage advice.
One thing to note here is that young crypto projects typically lack resources, both financial and human. This leads to a team, where everybody does everything.
Svirskis shares that setting up a dedicated team is key.
“Everyone should know their responsibilities and work upon them with full control of the management for the best result,”
he added.
Ensuring Marketing Support
Making new crypto projects and ICOs visible, and ensuring they stand out, requires strategic marketing solutions. It is not enough to register on a Reddit forum and launch token airdrops, according to the business advisor.
Svirskis believes that investors, and even the general audience, must clearly understand what the project is about and what its functionality is. According to the fintech company CEO, a successful crypto startup has to reach its audience wherever it is and keep it engaged.
There must be dedicated experts who are working solely on the project’s marketing and communication.
“Having strong marketing and PR support, a mix of in-house and third-party providers is necessary for success,”
he explained.
Finding the best timing is also important. According to Svirskis, the best time to launch an ICO is when the team feels prepared for it. Having solid tokenomics, an expert team, regulatory permissions, and a strong marketing strategy definitely help to ensure a project’s success.
Read more: https://dailycoin.com/crypto-business-advisor-shares-how-not-to-fail-ico-launch/
Text source: DailyCoin.com
