Last year, so many ICOs was announced and launched but there are only few who made it in the market and achieve their goals. According to the stats, the rate of failed ICOs was very high as compared to the successful ones. Launching an ICO is not a good idea. There is a lot of research to be done if the ICO company wants to achieve the goals and stand tall in the market against the other successful ICOs. That’s why it is very important that the people who are thinking to launch a new ICO in 2018 should have the proper planning, research and good strategy to market their ICO.
So what are the reasons for ICO failures? This is a very important question you must be able to answer before going into the ICO industry. Below are some of the major reasons for ICO failures, including ways to avoid them:
1. Inadequate Product market:
About 60% of ICO fail at the initial stage because their services or products does not have any value and demand in the market. So, it is very important that before you launch and announce an ICO, make sure that it has an audience who has need of your offering. Most of the ICOs today requires selling token to raise the capital. For such ICOs it is important that their ICOs have caught up the SEC and related regular bodies soon to protect themselves from long-term failure.
Additionally, it is very important the people who are launching the ICOs should have a defined market which is completely aware of the project, it is also imperative to build trust and reputation to make your ICO successful.
2. Failure to create the brand identity:
People are not brand conscious. They invest in a project which sounds good forgetting it should look good too. This includes every element of websites like content, logo, visuals, fonts, ICO white paper, and selection of colors etc. The people will question your brand if they find your website unprofessional.
ICO is not just about your idea but also the marketing and branding. The face of your offering is your brand, that’s why it is very important that you spend quality time to create the brand identity as it will lead to many other communication and marketing aspects in the future.
3. Unrealistic objectives and budgets:
The unrealistic budgets and objectives of the new business always put the business in difficulties. The higher you set your objectives, the more budget you will need to achieve those objectives and so is the need to spend on the marketing, PR, development, design, and content. So, to avoid this, make sure that the objectives of your offering should match the scope of your project. Before going to the public sale, it is ideal to conduct a private sale first if your team is small for an ICO.
4. Lack of audit, reporting, and measurement:
Majority of ICO which has failed was launched by newcomers who have very limited knowledge of the online marketing techniques and do not understand the need for continuous auditing, measurement and reporting to improve their ICOs. To avoid this, make sure that you know about the tools which can help you to do all these things, the tools which allow you to track the conversions and user behavior, e.g. Google Analytics.
Remember that ICO is like a product or service which cannot survive until and unless you are doing marketing the right way. You need to understand who is your audiences are, how to find them, and then convert them to make your ICO successful.