Though, the success stories of ICOs are very limited while the list of its flop stories is long and heartbreaking. Because of the following reason by Yee Kok Siong, ICOs have higher failure rate:
Poor Brand Identity
People have a tendency to make a subjective decision and without even thinking they will make a subliminal decision about your brand too once they are exposed to it. They will judge the way your brand logo looks, fonts, visuals, color. Every minor detail somehow says something about your ICO. For example, if the design of your logo is not attractive or say if a team of professionals does not design it and you are asking for 100 million dollars, then people will inspect your ICO and think it is as a scam. Do not disregard the value of ICO white paper and ICO white paper template as well.
Impractical Budget and Objective
People are curious and out of curiosity, or you can say out of habit they will ask how much investment is needed to reach the hard cap raise amount. Experience says, a percentage range of 5%-10% from what you are trying to raise. In simple words, if you wish to raise $50 million, then you will need an investment of $2.5-$5 million. If you want people to have faith in your project, then set achievable goals. When your goals are clear to the general public, then they will faithfully invest in your idea and help you in achieving set goals.
Lack of reporting and Management
If ICO is your first ever business, then you should not overlook the value of reporting and analytics. If you are amongst those people whose first real business is ICO, then do conduct the necessary research and invest your time in Google Analytics as well.
If you want your ICO to be a hit, then keep these points in mind. Invest in ICO carefully and before investing do a detailed research of the market. Carefully write your whitepaper for ICO.
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