The statistics can no longer be ignored. Most IOS tanks, and stay in the tank, once the tokens appear on the crypto exchanges, fierce in the presence of a huge crowd and after the ‘FOMO’ ends.
Most observers who have watched the ICO event publicly agree that the trend over the past few months is going to lose post-congestion value for ICOs, with many buyers waiting in vain for the ‘moon’ promise, once the cryptocurrency hits an exchange portal.
But the main reason why this is not being discussed is because we are witnessing this phenomenon and most of us rely on rating agencies to pick the one that is most valuable in an ICO, of course making mistakes in picking including the crowd. There is a good chance that the value will increase after completion.
While there may be many legitimately profitable reasons for this phenomenon, there is a reality that I think is probably more responsible for this than other controversial factors: ICO token evaluation and the ‘blockchain expert’, the wrong emphasis on “ICO consultants” Given ‘or’ Technical Whiskids’ for Ark 20 tokens.
I have always thought that the requirements of blockchain technology experts or ICO technical consultants are exaggerated, even if a project is judged by those criteria, unless the project actually tries to create a new currency concept. For most ERC20 tokens and copyrighted currencies, the real important consideration should be the business plan behind the tokens and the predecessor and executive profile managed by the team leaders.
As anyone involved in the industry needs to know, creating an ERC20 token from Etherium, or creating similar tokens from other cryptocurrencies, does not require great technical skills or requires an overrated blockchain advisor (literally, with new software, an ERC20 Tokens can be made in less than 10 minutes by a complete techno novice.
So technically shouldn’t be a big deal for tokens anymore). The key should be a business plan; Level of business experience; Fundraising on the skills of project leaders and the business marketing strategies of the parent company.
Honestly, as an attorney and business consultant for more than 30 years to several organizations around the world, I don’t understand why people are looking for a Russian or Korean or Chinese ‘crypto whistle’ or ‘crypto adviser’ to determine the strength of an ICO. Basically a crowdfunding campaign to end a business …
I am of the firm opinion that one of the main reasons why most ICOs do not cut their prelaunch hype. In an age where token-making software, platforms, and freelancers abound, focusing on blockchain experience often puts the technical skills of focus or promoters in the wrong place. It’s like trying to build a good website or app based on the skills of its employees to value the potential success of an organization. That train left the station long ago with the spread of technological hands on freelancing sites like Guru; Upwork, freelancer and even fiber
People were too caught up in the technical merits of conventional IPOs and especially ERC20 Ethereum-based token promoters and then wondered why no technically superior Russian, Chinese or Korean boy could provide this end-of-business after raising funds.
Even many of our ICO rating agencies thought that in the crypto experience of a team member, they have a number of crypto advisors and experience of ICO success in a team that is built with funds raised without focusing on the underlying business model.
Once one realizes that more than 90% of cryptocurrencies and ICOs are created to raise crowdfunding funds for an idea, and not just a token for a token, people’s emphasis will shift from a technical angle to a more relevant task of evaluation, the business idea itself and Corporate business plan.
As we move into this age of valuation before deciding whether to buy or invest in cryptocurrency, we will begin to evaluate future prospects or the value of our tokens based on slow business considerations:
– Suite analysis of the organization and its promoters
– Managing skills and experience of team leaders
– Strength of business concept outside of creating a token
– The company’s marketing plan and strategy to sell these ideas
– Ability to market underlying products
– Customer base for creating services by companies and products
– and the basis for the project taking place in the market place
What most people fail to realize is that the likelihood of their tokens growing at the ICO does not depend on anything technical but on the good things that happen to the company to raise funds and as the company’s valuation increases it rolls its business plan and supplies its business products. By
Of course, cryptocurrency is not buying stocks, and it is not buying securities in any company. We’ve got it, but tokens react in the same way that stocks respond to good news or bad news about an organization. The only difference is that in the case of cryptos, the effect is multiplied 100 times.
So, when a company achieves a financial or business milestone, the price of its tokens on the exchange will go up … and when something good is not happening it goes down quickly. So, what the company will do after ICO and how it will do it should be given utmost importance for the fact that its tokens do not want to see the value of Plummet and stay down forever.
Sure, tokens after ICO tokens will sink into most tokens after any crypto exchange, because those who want to make an immediate profit, but whether it will ever return to give you the expected multiple digits will always depend on the criteria I have already described above. After you buy a token, the value of ‘Crypto Advisor’ and ‘Technical Whiskids’ goes to zero with the possibility of your token going to the moon.
Following this reality, I think a smart crypto buyer or investor should focus less on how many crypto advisors he has hired or how technically supportive the team is (unless the company’s underlining business is natural) and more focused on managing, funding through ICO Marketing and potential customer base of the collecting company.
In other words, allocate more points to the business and management of the ICO than to the technical jargon that won’t help your token in the market when raising money!