Most Harmful ICO Marketing Mistakes to Avoid
ICO (Initial Coin Offerings) has acquired universal fame for raising billions of dollars of funds for startups to successfully launch their projects in the market. Hence, there is a huge opportunity lying in store for marketing agencies and digital media companies. There is a requirement of brand communication and creating impactful advertisements in the marketing campaigns of ICO’s.
Some of the Major ICO Marketing Mistakes Made from the Point of Brand Communication and User Experience Are:
Lack of a clear project vision – This can be found out by a prospective investor after he has read the whitepaper published by the firm. If he is still unsure why the startups have their service on a blockchain network, then it is better to avoid investment and skip that particular ICO. It means that the startup would fail to use blockchain abilities to its fullest advantage.
No clarity about the future of the product – There is complete ambiguity about how the product will change the whole world. Many firms do not have a proper roadmap for the products or services they are planning to launch in the market. Unless these questions are answered convincingly, an investor needs to be skeptical of investing in such projects.
Having a bad ICO promotion video – There is a need to work with a reliable agency to create an effective video. It should create interest to participate, understand the vision, give a clear picture of how the project works, and how an impact will be created.
Not possessing a solid team of advisors – Every ICO project needs to have a reliable team working behind the scenes. They must have relevant industry experience and understand the potential offered by blockchain technology. It is important to check their background by following their social media handles and asking them critical questions.
Not having a reliable marketing plan – To reach the minds of the target audience, active brand communication and a marketing plan are needed. The marketing team would be required to activate multiple channels of communication simultaneously. They have to be active in responding to queries on those channels. They would also have to interact with the leading media outlets as well as crypto-focused news websites. Influencers can be hired for widening the reach in the industry. A constant buzz has to be created around the team members, the product to be launched, and the entire process of creating the ICO.
Lack of adequate usage of the correct marketing techniques – ICO marketing takes a shift backward if remarketing and retargeting tools are not used. Hence, data analytics must be utilized to target the right audience. The channels should be optimized periodically by sharing engaging content.
Not focusing on the value of the token – A firm needs to have an astute understanding of tokenomics. They need to prepare a robust strategy for the distribution of the token and how the value structure will work around it. The token can be used for buying a product, exercising voting rights, running the smart contracts, connecting with other users on the network, and accessing other benefits. A certain amount of tokens would be reserved for the founders of the ICO project. If a firm has a solid plan regarding its token distribution strategy, it gives a notion that it is a proper startup and not a scam ICO.
Not having a personal cap for investors – This is a signal that the money may be used fraudulently. It could lead to a situation of a market collapse for that token where a whale who influences the market conditions by investing a big amount can dump after it hits a number that satisfies his interests. Hence, it is better to avoid investing in those ICO’s that lack a personal cap for investors.
No defined ICO hard cap – Hard cap refers to a solid investment plan or a structure. Unless there is a personal cap for investors and a hard cap for the ICO, it means that the investor’s money can be swindled off.
Not following a game theory approach – Gamification has made its presence felt in ICO’s too. It involves the application of game-design elements and game principles in non-game contexts. It helps in solving problems efficiently. In ICO’s, gamification would be used for managing the communication with the interested community members, spreading the word far and wide with the help of bounties, and getting more attention by making the users understand the product. The best gamification process should be a combination of a good referral system, rewards along with viral activation ideas. Hence, a reliable ICO marketing agency needs to be hired to help a firm’s ICO get maximum reach by creating high-quality content for the users.
Apart from the above factors, signs of most harmful ICO marketing mistakes can be due to the absence of a referral system, sub-standard forms designed for registration and KYC verification processes, lack of active interaction with the cryptocurrency community, and not managing crisis situations such as hacking and scamming effectively. Hence, consider all the above aspects before investing in an ICO.