*Disclaimer – This post contains personal opinions that may or may not resonate with the reader. Feel free to message me for a debate before jumping into a conclusion
The #ICO is dead and #ERC20 has hit rock bottom.
We were silent observers as we saw billions of dollars being invested into projects that would never realize even 1% of the total value invested.
I’m not a “name caller”, so I will not name these projects. The people who lost their money in the “hype train” know about it way better than I do.
Here’s three things that I think is really required for a #ICO to succeed :
1. Provide not a Whitepaper but Provide a Solid Business Plan – If you are looking for investments from the public, you need to justify and simplify your technical whitepaper into a well structured business plan. If you can’t show proof of projected ROI, Customer Acquisition Strategy, Projections for OpEx and CapEx with a well articulated plan, you are essentially creating a #shitcoin backed by nothing but a piece of paper.
2. A Live Product / MVP – Prove that your team can build a product from scratch. Nobody should invest in a team that does not invest in themselves. If the founding team is incapable of materializing at-least part of their vision before requesting for funds, the founding team is incapable of materializing any of their vision even after being given a billion dollars.
3. Educated Community – Most people place this at the top of their priority, but there’s a reason why people associate ICO’s with Ponzi schemes, the community is usually brainwashed with free #airdrops, 0 value tokens and shady referral schemes just to build hype rather than substantial traction. An educated community of specialists from the domain that the project aims to disrupt is essential to the entire plan. The community needs to constantly interact with the project team and the project team needs to take an initiative to get the community involved in beta testing and early access.
Here’s what we think at CryptX Financial : We’ve studied the BFSI sector and the Crypto sector for over a year, there’s multiple pain points in the industry to customers, businesses and entrepreneurs alike. We built CryptX Financial to address these pain points in the market today.
#cryptxfinancial is a Cybernetic Financial Services platform – Built on #blockchain, fueled by #cryptocurrency
We’ve hit all the three check marks mentioned above –
1. https://cryptx.financial – A business plan for your understanding.
2. email@example.com – Talk to us to gain private access to our demo product.
3. CryptX Financial Tech Blog – Lively blog that has been up for 8+ months gathering insights on the crypto industry. Be a part by mailing us at firstname.lastname@example.org
The reason for my post is to give you a reason to talk to me about this project; because without scrutiny, without questioning and without due diligence – any money invested is simply, a lot of money lost.
Here’s a few key takeaways :
- Do Not invest in a website!
- Do Not invest without due diligence
- Check or Ask for essential success metrics such as :
- Revenue Projections
- Recurring Revenue Vs Total Revenue Projections
- Gross Projected Profit
- LTV and CAC (life time value per customer and Customer acquisition cost)
- User growth and User base projections
- MoM Growth (Month over month)
- Burn Rate
- Charts – CAGR, AAGR and other financial information
- FOMO – Fear of Missing out – Don’t let this get the best of you, if your country does not allow you to take part in such a sale, don’t take part in it!
- Check for KYC – AML Compliance
- Check the Registration Details of the the company promoting the crowdsale
Let the ICO hype die down, let that bubble burst & let the disruptive projects emerge from its ashes; For the collective wisdom of crowdsale investors has grown many fold over the past 1.5 years.
Have a great day #CryptXCommunity