Since mid 2017, the number of cryptocurrency projects has expanded significantly. In spite of the increase of new Initial Coin Offerings (ICOs), interest in these projects has fallen dramatically. Researchers speculate that this could be due to a lack of easy access to Airdrops.
ICOs offer cryptocurrency projects a fast and low cost alternative method for obtaining the funds required to develop new technologies, or to start, or expand their companies. However, as the success of an ICO is reliant on public contribution, it is essential that venture groups think about how, and through what channels they showcase their services, to increase their reach.
Community matters
Statistics reveal that very regularly ICO and cryptocurrency projects neglect to formulate the necessary community engagement strategies that determine the success of their venture.
These days more and more projects are adopting the use of Airdrops as a powerful tool aid in community growth which directly affects the success of the ICOs, pre or post-crowdfunding rounds.
Last year, roughly one ICO project failed per minute.
This trend tended to reflect either, the drawbacks of the decentralized nature of such projects, or the lack of a clear community engagement strategy. Having the capacity to viably connect with a network requires picking the correct forms of promotion. This is especially important when dealing with the different stages of development that are required for each venture.
For digital currencies, the most commonly used social media platforms and communication tools include Telegram, Discord, Bitcointalk, Twitter, Facebook and Reddit. Without building a strong community within these platforms, the ICOs have little to no possibility of success.
How to succeed
Because social communities directly affect the success or failure of ICOs, community leaders must try their best to respond to comments and questions from the public with transparency and strive for involvement of new people in their community to help build a lasting relationship with those who help make these projects possible.
Delivering information to the participants of your project can be complex and time-consuming but it is one of the most important steps on the long road to success.
Creating positive conversations and rewarding Airdrops are key factors in the way people view an ICO or cryptocurrency project. But more importantly, one must remember, that once all the hype of an ICO dies down, to continue to engage in their communities and deliver successful project outcomes to keep the faith of those who helped build and fund the venture.
Far too often we see people’s investment in a project only goes as far as participating in an Airdrop for the token reward. This can lead to hard forks down the road that will drive the value of a coin down if the community does not remain engaged and invested.
The best way to ensure the success of your project is to keep honest engagement with your community from start to finish, this means building a strong community pre-ICO and maintaining a meaningful relationship with that community post-ICO.
