The past decade has seen a robust and rapid rise in the cryptocurrency industry, something that has contributed greatly to the growing popularity of ICO (Initial Coin Offering). Have you ever heard of the term ICO?
Well, according to surveys, 2019 saw over $3.3 billion raised through ICO. The studies further revealed that more money is raised every year. However, you should be very careful since different coins have different trajectories. You should not be surprised if your coins lose value over time.
For example, did you know that in July 2020, we had about 65% of tokens losing all their value? This makes the tried and tested best practices for token promotion discussed below important. But before then, what is ICO?
What is ICO?
ICO (Initial Coin Offering) is a term used to refer to the unregulated process that is used when raising money to fund cryptocurrency projects. Through ICO, you are required to sell a percentage of the cryptocurrency to investors to get legal tender or bitcoin in return.
Have you ever heard about IPOs? They are similar to ICOs in that IPOs require you, the investor, to buy company shares. However, ICOs are newer but growing very fast because of the growing popularity of cryptocurrencies.
Crypto investing burst into the limelight in 2017. In that year alone, multiple ICO projects collected more than $5.6 billion from over 400 crypto ventures. With more than 1,500 cryptocurrencies today, ICOs have grown more popular.
Tried and Tested Best Practices For Token Promotions
You can choose any ICO marketing strategy to promote your tokens. However, it is important to note that you will face very stiff competition. It means you should try as much as you can to ensure that you are simply the best.
To stand out, ensure you have followed these tried and tested best practices for token promotions.
Consult an ICO Advisor
You might think that you have all the experience and expertise you need when it comes to promoting your tokens. However, no matter how good you are, you might still make very expensive mistakes that might hurt everything else.
If you consult an ICO expert, you will be working with a person who has all the experience that you need to successfully promote your tokens. To be on the safe side, ensure that you work with this expert throughout the project.
This expert will tell you everything you want to know when it comes to ICO marketing. They know what you should or should not do. In addition, they will make sure that you are using the correct marketing strategy. This will help you avoid making losses.
Check Your Audience
You would be right if you argued that cryptocurrency has grown in popularity and penetrated almost everywhere in the world. However, does this allow you to promote your tokens to just every other person? No, it does not… you should even be very careful.
If you do, chances are that you are going to spend many resources and time without even achieving your goals or conversions. You will be marketing your ICO to people who are not interested or do not care about such things.
So, what can you do to avoid all these things? Well, you should study your target audience and ensure that you are only working with that group. In addition, you can categorize the audience to make it easy for you to market to each of the categories effectively.
For instance, let us assume that you have two different categories of your target audience, categories A and B. Ensure that you are using the correct marketing campaign for each of them. This will help you get better conversions.
Ensure Your ICO is Compliant
As discussed above, ICOs are relatively new. Even if you were an investor, you would also be concerned with compliance. If you want investors to even think about investing in your ICO, you should make sure that your ICO is compliant.
There are many regulations you need to look at when promoting your tokens. For example, look at all SEC regulations and ensure that you are compliant to stand a chance of achieving your goals.
The ICO strategy you employ will be dictated by how compliant you are with these regulations. Of course, the marketing methods you use will also be essential. However, you will need a lot of time and thorough investigation to ensure that the approach you choose is successful.
So, what does this mean? It only tells you that you should take all the time you need to use the most effective promotion strategy while at the same time ensuring that you have a compliant and reliable ICO.
Create a Transparent Offer
If you want to make sure that your ICO is successful, then you should create a transparent offer. This is one of the most effective ways if you want to earn the confidence and trust of your target audience or your potential buyers.
In addition, it is the only way you can get more funds, especially during the first offer. But how easy is it for you to ensure that your buyers are confident? Well, it is not easy. However, your team members should have all the information about your ICO project.
You should also not hide anything with regard to the project’s financial information. Of course, you will come across people with many questions regarding your ICO. Since you cannot be available to answer each one of them, you should hire effective team members to answer all questions, whether online or physically.
Tell the Story Behind Your ICO
Let us assume that you want to buy your first car. You have identified two similar models with the same features and going for the same price. None of the two cars has a feature that gives it an edge over the other.
So, how do you choose the car to buy? You meet the manufacturers of both cars. Each one of them tells you the story behind their cars. You find one of the stories interesting and relatable. Chances are that you are going to buy from this manufacturer.
There is a similarity between the story above and ICOs. If people can associate with the mission and vision of your ICO, chances are that they will back you. This will make it easy for you to promote your tokens and make your ICO successful.
In conclusion, do not think that the fact that cryptocurrencies are becoming more popular will help your ICO to become successful. The only way for you to succeed is to implement the tried and tested best practices discussed above in your token promotions.