Today ICOs become very popular way to collect funds for any idea. Some of them present revolutionary innovations, other do something interesting in order to make our lifes easier.
As a team member of several ICOs I want to share with you some mistakes projects often do. The reason I am doing it now that it really distracts potential investors from participating in token sale.
- No supports or manager to answer client’s questions. In this case I mean absence of official representatives in social media, including Telegram, Reddit, Facebook, Twitter etc. As a result people leave these socials and start to look for a new project to invest their funds. The reason of that is impossibility to get help and thinking about the fact that devs don’t care about community. Usually it happens when devs don’t have enough money to start it.
- Enormous bonuses. Those devs of project, who are not sure they will collect at least soft cap, offer huge bonuses for investors, especially for big ones (“whales”). The make big mistake, cause the value of any token or coin starts to fall down. Simple example, if you invest 1 ETH to a project — you get 10% bonus (in tokens), but if you invest 100 ETH — you get 50% extra tokens. The point I want you understand that is huge number of tokens, so a price of this one falls down immediately after listing in exchanges.
3.Non-fulfillment of obligations during firsts months. I can give you an example. The project collects soft cap (with huge bonuses, so the real value is lower) and distributes tokens to investors and after that it generates x10 tokens and reserves it for itself. As you understand the price of token decreases by a factor of 10. Also, other example, providing MVP or any other stuff later than it was promised. Everybody this action shoes us, that devs are unprofessionals. ( I don’t speak about force majeure) - Early distribution of tokens to investors. In case when a team is going to distribute tokens, before listing on official exhcnages, it faces the problem of decentralized ones. The main problem is that profiteers sell huge number of tokens there and after official listing the price of token is usually much less than it was on the sale.
- Listing in on Yobit. I think there is nothing to explain, it’s just trash. You can skip this project if you hear about ideas from devs to list it on yobit.
I hope it will be useful for you. I am talking about it from position of team member of some projects which I worked in the beginning of the year. Every of this action causes distraction of investor from investing in a project.
Wish you the best, Oleksandr