One area where blockchain technology has been successfully used is in allowing businesses to raise funds for their cryptocurrency-related projects. The Initial Coin Offerings or ICOs, as they are popularly called, involve a crowd sale, where the early supporters of the project being funded receive a percentage of the crypto token being launched via the ICO. Sounds interesting, doesn’t it? But is it that simple and easy? The answer is no, because to convince investors to put their money into a new project is actually an uphill task. So, for entrepreneurs or startups looking to raise funds via an ICO, creation of a marketing strategy to sell their ICO is an important step. And work on this should start months before the actual ICO is launched.
Need for ICO Marketing and Some Important FAQs
An ICO or crowd sale is aimed at funding a blockchain-related project by issuing crypto tokens or token money to investors who are convinced about the viability of the project. The way to attract investors and convince them about the potential value of the project is through ICO marketing. Here’s a look at some of the most frequently asked questions about ICO marketing:
- Why is ICO marketing important?
The aim of ICO marketing is to convince prospective investors about the efficacy and viability of the project to be funded. This can be done by presenting them with a white paper, detailing all the important milestones, dates and benefits that are likely to accrue to investors from the project. This has become all the more important in the light of the recent ICO scams, which has created concerns among investors about investing in ICOs.
- Why does an ICO organizer need a website?
The website of any business acts as an important knowledge window for investors. It is important that ICO organizers update their websites about the ICO and its purpose, while also uploading presentations about the project to be funded. The site can also help the business provide potential investors the needed information about the token sale terms, pricing data, token supply and distribution. Another important thing that a website can provide is information about the founders or promoters of the project and their experience in the field. Last but not the least, the website can also mention the names and details of investors who are already supporting the project for which the ICO is being launched.
- Why do we need to create social media profiles?
The growing use and influence of social media on the lives of people all over the world has thrown up a new avenue for marketing. For projects aiming to raise funds through an ICO, social media offers a cost-effective yet highly powerful way to maximize reach, while keeping investors updated on the progress being made on the project.
- Why does the project’s name need to be included in an ICO calendar?
An ICO calendar is an important source of information for prospective investors. Therefore, inclusion of a project’s name in this calendar is an important way to inform investors about the ICO.
- What is the role of content creation and blogging in marketing an ICO?
An ICO is likely to be written about only if it is used to fund a worthwhile project. So, it is important to ensure that all the updates about the project are provided to investors. This could be done through regular posts or blogs on social media sites. Content creation is also a good way of establishing the knowledge base of the core team behind and the viability of the project.
- What are ICO Bounties?
Bounties refer to small rewards given to individuals who promote the ICO on their social media profiles or pages, cryptocurrency communities or other groups.
- Why do I need to have security audits for my smart contracts?
Security audits for smart contracts help in plugging any loopholes that can render investor money vulnerable to hacking.
- What is a good budget for ICO marketing?
Successful ICO marketing requires the creation of a white paper on the project, a professional website, a token smart contract and online marketing on various communication channels and social media. So, the budget for ICO marketing should be finalized keeping in mind all these on average we see initial coin offerings budget up to 10% on marketing initiatives.
Any laxity in providing the necessary information about the project to be funded, promoting the project or the token and their future potential may render an ICO unsuccessful.