With the Initial Coin Offering, it became possible for small and medium start-up companies to start their own cryptocurrencies. From this point of view, the company’s reputation does play an important role in the way investors make their decisions, and whether they decide to invest in a company. Therefore, for such start-ups to raise funds, they have to make sure that public opinion about them is positive.
One of the main reasons why public image nowadays plays a role in the ICOs is due to the fact that there has been a number of serious scams. Among the most scandalous ones are OneCoin, Coindash, and Enigma. These are known to be the largest ICO’s failures of the last year. Given the extensive coverage of these events in all kinds of media, people do have a wrong and admittedly negative opinion as to the new possible cryptocurrencies, and lack trust.
Social Media Promotion
The main platform to promote any kind of business including the one connected to cryptocurrencies is social media. It is crucial for ICO to be promoted and published on many social media channels, such as Facebook, Telegram, Twitter, LinkedIn, Youtube, as well as the crypto-based channels such as Bitcointalk or Reddit. This type of promotion will help a project to expand so that more people can learn about it and get confidence as to their subsequent investment decisions.
The most efficient communications channels for ICO promotion include:
- Specialized forums, such as Bitcointalk which highlights almost all of the ICO projects;
- Thematic subreddits;
- Quora discussions: one may actively participate in those, as well as put some information about the new cryptocurrency
- Groups on LinkedIn: professional groups with users interested in subjects of cryptocurrencies, blockchains, and investments;
- Facebook groups where issues of ICO, cryptocurrencies and blockchains are actively discussed including ICO, Funding, Angels, Seeds, Investors, Startups.
Apart from relevant publications in the professional communities, one may also use more traditional marketing tools such as online advertising, general topic media, and blogs. Since ICO is not always related to the cryptocurrencies but may also be used in other business fields like digital advertising and food service, one should also consider more traditional media to disburse information regarding the business idea.
Perhaps, most noteworthy is that ICO candidates should not market tokens as the equivalent of an investment. They should pitch buyers on what the tokens can do, and not on what they could be worth. The bottom line: If a startup advertises its coins as something you can flip to get rich, its ICO is more likely to be “garbage” than “transformative.”