The statistics could no longer be ignored. Most ICOs accumulate and remain closed, once the tokens reach the cryptographic exchanges, after the frenzy is over and the “FOMO” that attends the mass sale is over.
Most observers tracking the ICO phenomenon universally agree that the trend in recent months has been for ICOs to lose value after mass selling, and many buyers waited in vain for the “moon” they were promised, a once the cryptocurrency changed portal.
What is not being discussed is, however, the main reason we are witnessing this phenomenon, and what should hurt participants in a crowded sale, including the rating companies in which most of us make a decision. , when choosing which ICO has the most value, or has the best probability of increasing in value once the collective sale is over.
While there are many reasons why the phenomenon could be legitimately offered, there is one fact that I think is probably more responsible for this than most other conflicting reasons: the assessment of the ICO witness and the emphasis which has been lost in the “experts in blog chains”. ‘or’ technical whizkids’ for erc20 tokens.
I’ve always thought that the need for blockchain technical experts or ICO technical advisors is exaggerated, or even totally wrong, when a project is judged according to this criterion, unless the project is really trying to create a new concept of currency. For most ERC20 tokens and counterfeit coins, the real important consideration should be the business plan behind the testimony and the administrative background and executive profiles of the team leaders.
As anyone involved in the industry should know, creating an ERC20 token from Ethereum or similar tokens from other cryptocurrencies does not require any great technical skill or require any overrated blockchain advisor (in fact, with new software, The ERC20 token it can be done in less than 10 minutes by a complete technical novice.
Therefore, the technique should no longer be a big problem for tokens). The key should be the business plan; level of business experience; competition from project leaders and the fundraising business marketing strategy of the parent company.
Frankly, as a lawyer and business consultant for over 30 years at various companies around the world, I can’t understand why people keep looking for some Russian or Korean or Chinese “Crypto Whiz” or “Crypto Advisor” to determine the strength of ‘an ICO for what is basically a crowdfunding campaign for a business concept …
I think that’s one of the main reasons most ICOs are never up to their pre-launch hype. In an age where there is a lot of software, platforms and freelance file creation, the disproportionate focus on the blogging chain experience or the technical capacity of developers is out of place. It’s like trying to assess a company’s likely success based on its staff’s ability to create a good website or app. That train left the station a long time ago with the proliferation of technical hands in autonomous places like Guru; Work, self-employed and even Fiverr.
People seemed too caught up in the hype and technical qualifications of people promoting an ICO, particularly Ethereum-based tokens ERC20 and then wonder why a technically superior Russian, Chinese or Korean can’t deliver the company’s final business. after the fundraising campaign.
Even many of our ICO rating companies seemed to assign a disproportionate number of points to the team member’s cryptographic experience, how many cryptographic advisors they have, and the successful ICO experience they have on their team, instead of focusing on the underlying business model it will be created with the funds raised
Once it is understood that more than 90% of the cryptocurrencies and ICOs that exist are simply tokens created to raise collective funds for an idea, and that they are not a testimonial because of the token, the emphasis of the people will change from technical angles to more relevant assessment work. the business idea itself and the corporate business plan.
Once we enter this era of valuation before deciding whether to buy or invest in a cryptocurrency, we will begin to assess future prospects or the value of our tokens based on sound business considerations such as:
– SWOT analysis of the company and its promoters
– Management competence and experience of team leaders
– The solidity of the business idea beyond the creation of a testimonial
– The marketing plan and strategy of the company to sell these ideas
– The ability to deliver the underlying products to the market
– The customer base for the products and services that the company must create
– and basis for projecting market adoption
What most people didn’t realize is that the potential of their tokens to increase value after the ICO doesn’t depend so much on anything technical, but on the good things that happen to the fundraising company. and the perceived increase in the valuation of the company. deploys its business plan and offers its commercial products.
Of course, buying cryptocurrencies is not buying stocks and not buying security in any company. We get it, but the tokens react the same way that stocks react to good news or bad news about a company. The only difference is that, in the case of cryptos, the effect is magnified 100 times.
Therefore, when a company meets a financial or business milestone, the price of its stock on the stock market will rise … and go down quickly when nothing good happens. Therefore, what the company will do and how it will do it after the ICO should be of utmost importance to anyone who does not want to see the value of their tokens fall and stay forever.
Of course, most tokens plummet once the tokens reach a cryptographic exchange after the ICO, due to those people wanting to reap immediate benefits, but if they ever get the expected benefits of several digits will always depend on the criteria I have already outlined above. After you have purchased a token, the value of your ‘cryptographic advisors’ and ‘technical whizkids’ goes to zero in relation to the potential of your tokens to the moon.
Following this reality, I believe that a smart crypto buyer or investor should focus less on the number of cryptographic consultants a project has or the technical sound of the team (unless the underlined business of the company has a technical character) and focus more on management. marketing and potential customer base of the company raising funds through an ICO.
In other words, assign more points in the business and management aspect of the ICO instead of technical jargon that will not help your testimony in the market when the money has been raised.