ICO token assessment and misplacement on blockchain technical experts and ICO advisors

The statistics could no longer be ignored. Most ICOs are canceled and remain charged, when the tokens arrive on the crypto exchanges, after the madhouse and ‘FOMO’ attendance at the sale is over.

Most observers following the ICO phenomenon universally agree that the trend in recent months has been for ICOs to lose value after a sell-off, with many buyers waiting in vain for the ‘month’ promised to them once the cryptocurrency hits the stock exchange portal.

What is not discussed, however, is the main reason why we are witnessing this phenomenon and what the participants in mass sales, including the rating of the company that most of us rely on to make a choice, must make mistakes in choosing which ICO has the greatest value. or is most likely to increase in value after the sale is completed.

While there are many reasons that could justifiably be cited for this phenomenon, there is one fact that I think is probably more responsible for this than most other opposing reasons: estimating the value of ICO tokens and misplacing the emphasis on ‘blockchain experts’, ‘ICO advisors’ ‘or’ technical whizkids’ for erc20 tokens.

I’ve always thought that the need for blockchain technical experts or ICO technical advisors is excessive, or even completely misplaced, when a project is judged against those criteria, unless the project is actually trying to create a whole new coin concept. For most ERC20 tokens and coin copies, a really important consideration should be the business plan behind the tokens and the managerial predecessors and executive profiles of the team leaders.

As everyone involved in this industry should know, creating ERC20 tokens from Ethereum or similar tokens from other cryptocurrencies does not require any great technical skill or require any overrated blockchain advisor (in fact, with new software that exists, the ERC20 Token can do complete technical beginner in less than 10 minutes.

Thus, technical technique should no longer be important for tokens). The key should be a business plan; level of business experience; the competencies of the project manager and the business marketing strategy of the main fundraising company.

Honestly, as a lawyer and business consultant with over 30 companies around the world, I can’t understand why people are constantly asking some Russian, Korean or Chinese ‘Crypto Whiz’ or ‘Crypto Advisor’ to determine the strength of an ICO for what it is. basically a crowdfunding campaign for the BUSINESS CONCEPT …

I firmly believe that this is one of the main reasons why most ICOs never fulfill their prelaunch hype. In an era where there is an abundance of software for creating tokens, platforms and freelancers, the disproportionate focus on the blockchain experience or the technical capabilities of the promoter is largely out of place. It’s like trying to assess a company’s likely success based on its staff’s ability to create a good website or app. That train left the station a long time ago with the proliferation of technical workers on freelance sites like Guru; Upwork, freelancer, and even Fiverr.

People seemed too preoccupied with the hype and technical qualifications of people promoting ICOs, especially tokens based on ERC20 Ethereum, and then wondering why technically superior Russian, Chinese or Korean guys can’t deliver the company’s business end after a fundraising campaign.

It seems that even many of our ICO rating companies have awarded a disproportionate number of points to a team member’s crypto experience, how many crypto advisors they have and the ICO success experience they have on their team, instead of focusing on a core business model to create collected funds

Once it is realized that more than 90% of cryptocurrencies and ICOs are simply tokens created to raise funds for an idea, not just a token for a token, then people’s emphasis will shift from technical angles to more relevant evaluation work. the business idea itself and the corporate business plan.

Once we move into this era of valuation before deciding whether to buy or invest in a cryptocurrency, then we will begin to evaluate the future outlook or value of our tokens based on sound business considerations such as:

– Swot analysis of the company and its promoters

– Management competence and experience of team leaders

– The correctness of a business idea outside of creating a token

– Marketing plan and strategy of the company to sell these ideas

– Ability to deliver basic products to market

– Customer base for products and services to be created by the company

– and the basis for projecting market adoption

What most people didn’t realize was that the potential to increase the value of their tokens after an ICO doesn’t depend so much on anything technical, but on the good things that happen in a fundraising company and the perceived increase in company value as it develops and delivers its business plan. your business products.

Of course, buying cryptocurrency is not buying stocks and it is not buying securities in any company. We understand that, but tokens react the same way stocks react to good or bad news about a company. The only difference is that in the case of cryptocurrencies, the effect increases 100 times.

So when a company reaches a financial or business milestone, the price of its token on the stock market will rise … and fall rapidly when nothing good happens. So what the company will do and how it will do it after the ICO should be of the utmost importance to anyone who doesn’t want to see the value of their tokens fall and stay down forever.

Of course, most tokens would fall when tokens come to crypto exchange after ICO, for those who want to make instant earnings, but whether that will ever come back and give you the expected multi-digit earnings will always depend on the criteria I’ve said above . Once you have purchased a token, the value of ‘crypto advisors’ and ‘technical moves’ goes to zero relative to the potential of your tokens for the month.

Following this reality, I think a smart crypto buyer or investor should focus less on how many crypto advisors the project has or how technically sound the team is (unless the company’s main business is technical) and focus more on managerial, marketing and a potential customer base of the company by raising funds through the ICO.

In other words, give more points to the business and management side of the ICO instead of technical jargon that will not help your token in the market when the money is collected!