Are you going to launch the ICO? Answer yourself a couple of questions first
Bitnewstoday prepared a checklist of questions that must be answered before “deploying” tokens specifically for projects that are planning to launch ICO. It is essential that you answer these questions honestly, without excessive romanticism.
The teams of many projects are beginning to think out a plan for launching the ICO at the stage of the product idea when there is no consideration of how the product will work and if the market will need it.
Therefore, the first question to answer is: what will be the idea of the project? What problems of market or society will it solve? Is the product currently relevant? It should be taken into account that technology must solve real problems. If competitors already exist on the market, it is necessary to determine the advantages of your product.
Daniel Taylor, the CEO of BlocSide Sports LTD, advises to think whether it is possible to create a conceived technology/product at the initial stage, whether the industry needs it and what aspects of life it will change. Therefore, the expert also advises developing a prototype of the technology before launching the ICO. It would be the proof for investors — the idea which is really “working”. When the developer answers the questions above, it is time to continue with thinking about ICO.
The second question. Why does the project need ICO and what is its economy? “A significant point, even the key one, is the idea of a token: where it will be applied, how it will fit into the project's economy, how it will grow. Very often managers conclude that they do not need ICO during brainstorming," says Vyacheslav Zolotukhin, an ideologist and a founder of Blockchain EvoDesk.ru.
Besides, it is necessary to determine what amount of money the project needs, make a cash flow forecast, and determine the amount of money that need to be attracted to the ICO. At this stage, you need to think if the project can work without issuing tokens and attract several large projects.
Hyun Lee, a representative of the Mothership Foundation, believes that startups should think why the project needs a blockchain and why it is necessary to raise funds through ICO.
The third question. Who is our target audience? Roman Kumar Vias, a founder of Qmarketing agency, gives advice: "Presentation is the first step to start selling tokens, so you need to see the product through the eyes of target audience. At this moment, your target audience is not the future users, but potential investors. It is not the product that should be presented, but its investment potential."
Also, it is necessary to answer the question: "Are the chances to raise funds for ICO real? What do the potential investors really think about it? " For this purpose, it is necessary to post a project presentation on the BitconTalk, Reddit, and similar forums. The success of the project will depend on the feedback. Specialists note that for most ICO investors, the feedback and corrections of errors are the indicators of the viability of projects and the adequacy of their founders.
The fourth question. Another important question sounds like: "Where is the target audience of ICO focused? Are there any states that have established strict rules for tokens issuing in this list (i.e. USA, Canada, China)?"
Jeff Stollman, an expert in the cryptosphere, advises teams to decide whether the project is ready to assume the costs of enforcing ICO rules in the United States — if the country has a significant share of the target audience. Besides, the expert advises monitoring regulatory legislation in different countries where the target audience is present.
It is also worth determining whether the project is ready to launch the ICO abroad to minimize taxes or regulatory risks.
The fifth question. When everything is thought out, you need to answer the final question: "Do you have full confidence that your ICO will be successful?"
Darshit Parmar, a representative of M-Connect, said that when all the questions are answered, you must start writing White Paper, the document which includes all technical information. It must be sufficiently precise, and in the future, in any disputable situation, the team will refer to White Paper.
When preparing for the ICO, do not neglect all of the above questions, even if it seems that you all know everything and you have an "image" in your head. It is necessary to get the strategy of the development of the project and the launch of the ICO down on paper — and only after that focus on actions.