By Josiah Wilmoth
Initial coin offerings (ICOs) have rapidly grown into a multibillion-dollar industry, and analysts expect the ecosystem to continue to grow for the foreseeable future. Consequently, ICOs – called token generation events (TGE) when used to issue a utility token – present startups with unprecedented opportunities to crowdfund development capital. However, startups conducting TGEs face increasingly stiff competition, which is why utility token TGE organizers must deploy effective marketing campaigns if they hope to attract token buyers.
Here are five tips for successfully marketing a utility token sale:
1. Ensure Your Token is a Utility Token
This one should go without saying, but far too many startups fail to ensure regulatory compliance before they launch their ICO or TGE. Security token ICOs are subject to far more regulatory scrutiny than utility token sales. These regulations apply to far more than how the security must be issued and who can participate in the ICO. They also extend to how you can market your crowdsale. For example, the SEC recently issued a warning that some celebrities may have inadvertently violated securities laws by endorsing tokens that should legally be classified as securities and failing to properly disclose the nature of these endorsements.
2. Target the Correct Market
Marketing is a precision art. An effective marketing campaign will identify a specific demographic and tailor their message to that group. If you intend to target multiple demographics – e.g. blockchain newcomers and cryptocurrency insiders – you will need to develop a marketing plan that delivers tailored messages to each of these groups.
3. Be Transparent
Opacity from developers is one of the biggest warning signs for potential token buyers, so a lack of transparency will hinder your ability to meet your fundraising target. All members of the team should be made public so that token buyers can research their backgrounds, and team member should also make themselves available through social media channels such as reddit, Slack, and Telegram to answer questions about your project.
You should also clearly and succinctly explain how the crowdsale funds will be allocated, as well as the tokens themselves. If you intend to withhold a large percentage of the token supply, explain your reasoning and consider implementing vesting periods for tokens held by team members and advisors.
4. Tell a Compelling Story
Many token buyers participate in TGEs because they believe in a project’s mission and want to help contribute to the realization of that goal. Craft a clear, compelling narrative that explains the problem you aim to solve, why your product or service is the solution, and what makes your team qualified to bring that solution to market.
5. Enlist the Help of a Utility Token Launch Advisory Service
You only have one opportunity to conduct your TGE, so flawless execution is critical if you hope to meet your fundraising goal. Professional utility token launch advisors have unparalleled industry experience, so they have the institutional knowledge to equip you with the resources to deploy an effective marketing campaign.
Strategic Coin is committed to providing you with trustworthy information about launching and participating in the world of cryptocurrency. Whether you are a start-up or existing business that desires to enlist the help of a professional utility token Initial Coin Offering (ICO) advisor or a token buyer who needs help navigating the blockchain space, Strategic Coin will provide you with the resources you need to take advantage of market opportunities within the crypto marketplace.
Tokenizing Your Utility
Featured Image from Pixabay