Statistics can no longer be ignored. Once the tokens are received on the crypto exchange, after the frenzy of joining Crowdsell and the ‘FOMO’ is over, most ICOs tank and stay in the tank.
While most observers of the ICO phenomenon have unanimously agreed that there has been a tendency for ICOs to lose post-CrowdSell prices over the past few months, many buyers waited in vain for their promised ‘moon’, once the portal hit the cryptocurrency exchange.
However, what is not being discussed is why we are witnessing this phenomenon, and the participants in a crowdsell, including the rating companies we mostly rely on to make a choice, must be mistaken in choosing the most valuable ICO, or the crowdsell is over. If so, there is a good chance of price increase.
While there are many reasons why anyone could legitimately propose this incident, there is one fact that I think is probably more responsible for this than other controversial factors: ICO token evaluation and ‘blockchain experts’, ‘misrepresentation of ICO advisers’ or ‘Technical WhiskeyKids’ for erc20 tokens.
I have always thought that the requirements of blockchain technology experts or ICO technical consultants are exaggerated, or even completely misunderstood, when a project is judged by those criteria, unless the project actually tries to create a new currency concept. For most ERC20 tokens and Copicat coins, the real important consideration should be the business plan behind the tokens and the managerial predecessor and executive profile of the team leaders.
Anyone involved in the industry should know that creating ERC20 tokens from Ethereum or similar tokens from other cryptocurrencies does not require great technical skills or the need for an overrated blockchain advisor (in fact, there is an ERC20 token in less than 10 minutes with new software Can be done by a complete technical novice.
So it shouldn’t be a big deal for technical tokens anymore). The main business plan should be; Level of business experience; The skills of the project leaders and the funding of the core company’s business marketing strategy.
Honestly, as an attorney and business consultant at various companies around the world for over 30 years, I don’t understand why people are looking for some Russian or Korean or Chinese ‘crypto whiskey’ or ‘crypto adviser’ to determine the strength of the ICO. What is a crowdfunding campaign for a business idea …
I am a firm believer that this is one of the main reasons why most ICOs do not adhere to their pre-launch hype. In an age where there is a plethora of token-making software, platforms and freelancers, the uneven focus on blockchain experience or the technical prowess of promoters often goes wrong. It’s like trying to build a good website or app based on the skills of its employees to value a company’s potential success. That train left the station long ago with the spread of technology at freelancing sites like Guru; Upwork, Freelancer and even Fiverr.
People who were promoting an ICO, especially the ERC20 Ethereum based token, seemed overwhelmed by the hype and technical merits of the people and then wondered why a technically superior Russian, Chinese or Korean could not end the company’s business after promoting fundraising. .
Even many of our ICO rating companies, instead of focusing on the underlying business model, allocate an inconsistent number of points to the team members’ crypto experience, how many crypto advisors they have, and their ICO success experience in their team. Will be made with the funds raised
Once one realizes that more than 90% of cryptocurrencies and ICOs have created tokens to raise crowdfunds for just one idea, and not just tokens for tokens, the public’s emphasis will shift from technical angles to more relevant evaluation work. The business concept itself, and the corporate business plan.
Once we have entered this era of valuation before deciding to buy or invest in cryptocurrency, then we will begin to evaluate future prospects or the value of our tokens based on proper business considerations such as:
– Swot analysis of the company and its promoters
– Managerial skills and experience of team leaders
– Strength of business concept outside of creating a token
– The company’s marketing plan and strategy to sell those ideas
– Ability to supply underlying products in the market
– Customer base for products and services created by the company
– and the basis for adoption in the market place
What most people fail to realize is that the value of their tokens in post-ICO growth is not so much dependent on anything technical as it is on the good things fundraising in the company and the perceived growth in the company’s valuation. It creates its business plan and delivers its business products.
Of course, buying cryptocurrency is not buying stock, and it is not buying any company’s securities. We’ve got it, but tokens react in the same way that stocks respond to good news or bad news about a company. The only difference is that in the case of cryptos, the effect is multiplied 100 times.
So, when a company meets some financial or business milestones, the price of its tokens on the exchange will go up … and when nothing good is happening it will go down quickly. So, what the company will do after ICO and how it will do it is very important for anyone who does not want to see the value of their tokens and wants to stay down forever.
Of course, after the ICO, when tokens hit the crypto exchange, most tokens will go down, because those who want to make an immediate profit, but whether it will return to give you the expected multi-digit profit will always depend on the criteria. I already outlined above. After you purchase a token, the value of ‘Crypto Advisors’ and ‘Technical Whiskey Kids’ goes to zero with the probability of your token on the moon.
Following this reality, I think a smart crypto buyer or investor should focus less on how many crypto advisors a project has or how technically good the team is (unless the company’s underlining business is technical in nature) and focus more on managerial. Marketing and raising funds through an ICO to the company’s potential customer base.
In other words, allocate more points to the ICO’s business and management terms than technical terms that won’t help your token in the market when withdrawing money!