With close to half of the 2017 ICOs having failed by early 2018, the chances of succeeding in ICO are not very high. There are countless individual factors that affect the failure or success of the ICO, but some common mistakes that happen over and over again could be avoided altogether if ICOs just knew they exist. To do well with your ICO, you should be aware of the following common mistakes:
Not having the right intentions
Your whole ICO team should have every intention of delivering the project milestones and sticking to the project long-term. Not only it is hard to raise money without being completely transparent, you are risking your name and reputation if your plan is to raise some money and live a lavish lifestyle while running the business in a half-hearted way.
Trying to be everything to everyone
It’s great to be an ambitious entrepreneur and have grand visions - otherwise it’s hard to change the world in big way, if you don’t believe in your project and the vision 100%. However, the vision should be large and specific instead of just large, as solving multiple problems at once will eventually lead to not being good enough at anything to thrive as a business. Your target market and the paint points you’re removing should be as clear as possible, and the same goes for your value proposition - your post ICO business will do much better if your project is focusing on doing 1 or 2 things really well, rather than having multiple products, services and target markets.
Disregarding regulations and laws
Depending on the target market and your tokenomics, you might have multiple options where to place your company and which country would be the best fit in a regulatory sense. To not consider these aspects of your ICO and post ICO business is a big mistake, since your ICO might face legal consequences if your project is not conducted in a compliant manner. This risks your whole business you’ve worked hard for to launch, and might even ruin your reputation among the community and investors, which is quite difficult to restore if major legal problems have occured with your ICO.
Producing insufficient technical or business documentation
If you are familiar with ICO investing and have planned every aspect of your ICO carefully so far, a whitepaper written by the ICO team members is a viable option. On the other hand, if you don’t have that experience in ICO investing or otherwise working in the ICO space, it is strongly recommended to consider hiring a professional to write the whitepaper. Same goes for designing your website, as website design and coding skills alone are not enough for setting up a proper ICO website that is supposed to drive investments towards your project.
Transparency is an important element of every type of communication, especially when dealing with potential investors and community members. Investors are used to extensive documentation in the ICO space, and they also want to have key information easily available and searchable in your ICO materials. Missing details in technical or business plan can become a red flag that stops your potential investor from evaluating your ICO further to consider investment.