Crypto Frontline

ICO Stages, Bonuses and Game Rules

ICO Stages, Bonuses and Game Rules

ICO Stages, Bonuses and Game Rules
May 23
11:13 2018

There’s no doubt that the difference between successful and unsuccessful ICOs lies in the subtle details that some companies take into account and other not. Because of that, in this article, we will discuss some of those details, why they are important and what benefits can bring.

#1 Token issuance

How many tokens will be issued for the ICO and the total supply are critical aspects and should be decided based on the type of token the company wants to launch and how much it wants to expand its business. If it is about a utility token and the company wants to expand its business on a global scale, a higher total supply (billion tokens) is needed. For a cryptocurrency token and a more reduced area of operation (like a specific niche, or a specific country) etc. a smaller supply is sufficient. These are just two examples and the decision should be taken based on the actual goals of the company behind the ICO.

#2 Stages of the ICO

In order to attract more ICO investors, the ICO must be planned in greater detail, so the company will manage to reach its goals and manage to raise the funds it wants. As we have seen in the case of the ICOs that managed to raise a lot of capital, they have conducted pre-sales operations. In the pre-sale, only a limited number of investors have access. These people are generally high-stakes investors and are willing to invest more in the business. They need to have better conditions than the people involved in the actual ICO phase.

Why is that?

Because they generally allocate more capital and are willing to invest for a longer term. It is important to attract this kind of investors, as a huge group of people who invested in the ICO is difficult to manage.

No, let’s talk about the actual phase of the ICO, where there will be a higher number of people wanting to invest. In a previous article we’ve talked about what makes a successful ICO and there we’ve talked about how crucial marketing is.

In order to attract people willing to invest in the ICO, you need to design the token sale accordingly. One practice that is commonly used is to offer different pricing as the ICO starts. At the beginning of the ICO, those who are willing to invest should have a discount. As the days go by, the price should steadily increase. This method is very efficient since it can convince people to invest in the token sale in the early stages and thus the company will manage to raise the funds quicker.

Another efficient practice is to offer discounts, depending on the amount one would like to buy. As the amount grows, the higher the discount. Offers and promotions are very efficient and applied correctly can contribute to a successful crowd sale.

Now, don’t forget that marketing is just a catalyzer for the project. The business behind the company is what matters the most. All that marketing does is to leverage and bring into the spotlight the actual potential of the company.

#3 ICO communication channels

As we have mentioned earlier, a lot of people involved in the ICO would encounter a lot of problems. That is why a methodology needs to be in play, so those people will actually manage to solve their problems. One way of doing that is through a Telegram group. Most of the blockchain-based companies have their own Telegram group, where people that own the coins or other people interested in a particular token can join.

Each group has a few admins which are available for questions and can help those who encounter problems. Most of the groups are very active in terms of the conversations which is a good thing for the company, keeping the people optimistic about the project since there is interest in it.

Also, one forum where cryptocurrencies are heavily discussed is Reddit. The website is a good source of information and also anyone is able to ask questions. There are a lot of people with experience in this field there.

The ICO must be popular as a lot of people must hear about it. Promoting on social media could be expensive and also since most of the platforms, including Google, had banned ads related to ICOs, the companies from the industry must find other ways of making themselves popular.

Although ICOs face a tough approach, things are expected to settle once a clear regulatory framework will be in play. When cryptocurrencies will be regulated and treated like securities (this is how things look at this point) ICO companies would find it easier to promote. Until then, the methods described above seem to be the best.