Tron Logo
Trade on HitBTC

Avoid These 7 Deadly Sins That Will Scare Away Your Investors

Avoid These 7 Deadly Sins That Will Scare Away Your Investors
0 0 768

Whether you're planning a private sale, pre-sale, public sale or fire sale you need to realize raising capital is not easy. With the growth of scams, shitcoins and security regulations every smart founder knows they have to level up to achieve success. 

You don't want to be the next Konstantin Ignatov. After his OneCoin project was exposed to be a pyramid scheme FBI agents arrested him at Los Angeles International Airport (LAX) on conspiracy to commit wire fraud charges. And remember Shinil, the South Korean company that announced it had found a $190 billion treasure-trove? The claim reeked of scam but they reportedly attracted $53.7 million in investments from around 100,000 investors. Later the company assets were frozen and top executives arrested. 

These types of stories in the crypto space have caused potential investors to wise up and do more research and homework. Retail investors, institutional investors and traders all recognize many ICOs and STOs are overvalued and risky. There are not the Golden Days of free flowing investor cash because you slapped 'Disrupt' or 'World's First' or 'Revolutionary' on your website and whitepaper. Cmon bro, step your game up!

Trying to bring your crypto or blockchain project to financial success will require a strategic approach that includes avoiding each of the following 7 Deadly ICO Sins. And while this list is not all encompassing these are major pitfalls on your quest to obtain Other Peoples Money.  

Poor visuals and graphics, confusing navigation and error-filled text/copy are definite red flags. Is the website current and up-to-date? Does it provide the information potential investors need?

Is an ICO the best route for your business? What role does blockchain play? What problem does your project solve?

When someone creates a new cryptocurrency it has to be implemented through software. The tech solution has to be translated into computer code. Is there an alpha version, beta version, or GitHub repository?

This is the backbone of the ICO project. It should be well-structured and easy to understand. A good whitepaper explains the business details and the technology solution.

An ICO depends on a robust community for investment and that audience needs to be well defined and engaged with the project from the beginning. There should be hype and buzz about the project before the ICO is available. 

Who are these people? What are their strengths? Investors want to see actual professional profiles and proven experience related to the project. If you can’t find them on Google, LinkedIn, GitHub and at industry events they probably won’t impress investors.

A beautiful coin with a memorable name, attractive logo and a hook for a tagline is a powerful branding message that will take you a long way with investors. If a team is seeking to raise $US5 million or more, and not willing to spend at least 5% on marketing and PR efforts then stay away. 

If you're serious about your project and the audience you want to serve be sure to check tick the boxes on the list above.  

12 Mar 2019 crowdfundingICOSTOScam
The views and opinions expressed in blogs are those of the authors and are not the official policy or position of ICObench. Any content provided by our bloggers or experts is of their opinion and they are fully responsible for it. ICObench is not legally responsible for the blog's content.

This user’s post This user all posts

07 Nov 2019 Norm Bond 0 0 472
29.3% of Americans Believe U.S. Dollar is Backed by Gold — It Isn’t
A new survey confirms around 30% of the U.S. public thinks that the dollar is backed by gold. In 1971 the ability to convert US dollars to gold ended. The Bretton Woods system...

Cookies help us deliver our services. By using our services, you agree to our use of cookies.

Learn more Got it