Market research: ICO Without a Team
Anyone who had eyes on the crypto space throughout 2017 knows that the year was filled with thrilling ICOs that helped blockchain and cryptocurrency startups raise billions of dollars to fund their fantastic projects. While ICO momentum has noticeably slowed down in 2018, the excitement remains. Each day a growing number of news stories about the adoption and acceptance of cryptocurrencies worldwide attracts individuals and institutions, wishing to create their own projects. Blockchain startups are aspiring to apply technology solutions in various fields of endeavour and the sector remains immeasurably broad and unsaturated. It is, however, becoming increasingly difficult for creators of new projects to reach their target investors and increased rules and rigamarole from various governing financial regulators has added additional hurdles to the ICO process. Fortunately, the general consensus views these additional steps as a way to ensure that investors are protected from scams and that only startups with strong potential ICO.
Beyond these challenges, one of the most immediate tasks that all successful startups must tack down is maintaining the attention of potential investors and getting them to participate in projects as the field is currently populated with an array of fantastic opportunities. To tackle this issue and make life easier for entities trying to start their own projects without hiring an entire team of blockchain programmers, some agencies have developed services that promote token sales as well as handle technical aspects of creating blockchain projects.
A Complete Out-of-the-Box Solution For Fundraising
According to Indeed.com, blockchain startups preparing to ICO payout monthly salaries averaging from $7,000 to $9,000 for one developer, $5,000 for a marketing specialist, $5,000 for a project manager and $6,000 – $,7,000 for an analyst. All together, the sum of these employee salaries along with general operative costs and other auxiliary costs can bring total expenditures to more than $50,000 per month and this does not include additional costs such as software, advertising budgets and market research.
So called “Out-of-Box ICO solutions” allow to avoid high costs for hiring an additional devteam and buying specialized software, since they already include all the necessary functionality for fundraising and, usually, marketing.
An average “box version” would cost the startup $ 35,000 – $ 90,000 for 2-3 months of preparing and launching a tokensale, which is several times less than the cost of office rent. A ready-made platform helps to avoid unnecessary risks at this stage and focus on legal issues and PR.
In addition, the average startup that faces with ICO activity for the first time is unlikely to be able to quickly build interaction with niche authorities and contractors as well as develop a reliable toolkit.
Ready-made solutions, on the contrary, implement into their platforms brand-new unique functions in pursuit of their customers. Some of them can significantly influence the success of the company, for example:
Basically, the ICO process is carried out using Smart Contracts based on the Ethereum network. To receive customer payments in BTC, LTC or any other cryptocurrency besides Ethereum, special processing systems are used. They accept payment, process it, and then transfer data to a smart contract in order to issue tokens.
“Crypto Payment System is an easily integrable platform which allows for simple, automated and fast acceptance of payments made by customers in any cryptocurrency. Importantly, your prices are pegged to fiat currency – which is why you are independent from volatility of cryptocurrency markets. “
from Phenom.team official website
Snowfox Technologies has developed the Promo Token technology, which allows fast and efficient special token creation and its distribution among potential investors for attracting their attention to sales via discounts, promo codes, rewards.
Technically, Promo token is an EIP-20 token credited for advertising purposes to Ethereum wallets that support arbitrary EIP-20 tokens (such as MyEtherWallet). Promo Token can be distributed to an arbitrary group of addresses. A popular criterion for choosing the campaign target is wealth: token is given to every address holding more than X Ether.
Automated Bounty System
“Bounty” or affiliate program is the popular marketing tool in the ICO world. Its idea is to reward the community members, who actively disseminate information about the project and attract new investors.
“Phenom” company offered the market to automate this tool for the platforms “Steem it” and “Golos”. An algorithm is quite easy: the company manager defines how many ICO tokens will be allocated by the partner, after which an automatic tool launches and credits tokens for likes, reposts and comments.
Below is a comparison of three solutions by randomly selected companies, whose clients have raised more than $ 500 million during ICO.
|SnowFox Technologies||Phenom Team||ICOADM.in|
|ICO dashboard tools||
|Admin panel (back office)||Hybrid CMS with ICO settings||No||CMS with ICO settings|
|UI/UX||Fully customizable interface
Friendly dashboard / personal tokenholder cabinet
|Intuitive investor’s profile interface||User friendly:
social networks and e-mails sign up & log in
||Basic ICO parameters customization||Basic ICO parameters customization|
|Approved Security and Reliability||
|Payments systems||Accepting payments in fiat (visa, mastercard) and 100+ cryptocurrencies||The majority of currencies – crypto/fiat
Token price fixed in USD
|BTC, ETH, LTC, ETC, BCH, Credit Card & Wire transfers support, WEX exchange|
|KYC/AML||ICOS ID – simple and security user ID verification and authorization tool meeting the KYC and AML requirements.
+Legal compliance in key jurisdictions
+Reduced costs on KYC/AML procedures
+Connect to 90 000 vetted and KYC/AML checked customers and save money
+Increased ICO campaign conversion by reducing the number of steps from opening
the page to completing the purchase
+Accelerated completion of KYC/AML verification
+A more convenient way to participate in ICOs: no need to upload additional
+Increased customer loyalty
|No||The solution with a compliance role in CMS allows to the validate identity of your backers to avoid legal issues|
||Automated bounty platform||
|Loyalty program||Bonuses, promo codes, private sales||No||Custom purchased bonus|
|Referral program||Multi Level platform with bonuses, promo-codes and channel analytics||The world’s first automated bounty platform that operates with Steem, Golos, FaceBook and Twitter.||Referral program with custom bonus schemas|
|Integrations||Integration with third-party services via API: Analytics, Tag Manager, different CPA platforms.||No||Google Analytics, Google Tag Manager|
|Languages||EN, RU, JP||EN||EN, RU, ES, CH, IT, FR, DE, KR, JP, HI|
|Available ICO stages quantity||non-limit||non-limit||non-limit|
|Pre/Post ICO production||
|Price||from $35 000||from $50 000||from $40 000|
“Out-of-the-Box ICO solutions” make it easier for blockchain startups to reach potential investors as all the procedures of ICO organization – from the back office, ICO campaign managers and token holders’ personal account to Visa/MasterCard integration and built-in loyalty programs – are carried out by the company. Imagine something like a mini accelerator for your I?O, which contains all the pre-designed features and processes required for setting up and tracking advertising campaigns, issuing promo codes, accepting payments, managing a database, and even integrating procedures that simplify the process of complying with new regulations imposed on I?Os in 2018.
Liquidity and Diversity of ICO Market Capitalization in 2018
One key thing to look out for when investing in any particular asset is liquidity as risks tend to increase when an investor cannot easily buy or sell an asset. Liquidity risks with the innovative instruments described at this article are relatively low and a glace at the statistics of 7 ICOs shed light on the high liquidity of assets issued in 2018. These ICOs harnessed more than $66 million dollars as $2,308,210.91 in various fiat, 9,609 bitcoins worth nearly $62 million and 6505.98 Ethereum worth nearly $2.9 million at current prices.
SnowFox ICO stats 27.06.2018 – 02.07.2018
In all, roughly $531 million has been raised by provided on this platforms ICOs, which was provided on platforms listed above, moreover, a large portion ($300 million) of these funds were raised through the SnowFox Technologies solution (Book Building platform). The most successful projects are: Crypterium ($50 million), Patron ($50 million), INS Ecosystem ($41 million), CashBet ($38 million), Shivom ($35 million), Play2Live ($30 million) and Storiqa ($25 million).
Further investigation into statistics show that all 7 fundraising rounds were comprised of trading pairs with a number of top cryptocurrencies. This provides investors with more options when it comes to buying and the the high liquidity and range of ICO tokens helps to boost investor confidence.
To further increase the level of investor confidence, many projects are moving from ICO model to the Security token offering (STO) one, registering their tokens according to the Securities Law. This step regulates companies’ responsibility to their investors by extending the latter with protection from such global regulators as SEC.
A protected investor and a safe technical platform are the main criteria for successful ICO without a team in 2018. Looking forward, Mike Raitsyn, Ambassador of Snowfox Technologies, strongly believes that “in 2018 we will finally see more and more projects using STO as a means of fundraising. Therefore, we are also working hard on creating the most sophisticated KYC/AML software suitable for ICOs, trading and STOs.”