Evaluation of ICO tokens and lost emphasis on ICO technical experts and advisors


Statistics could no longer be ignored. Most ICOs are reserved and remain reservoirs once the tokens reach the crypto exchanges, after the madness and “FOMO” present at the crowdelace are over.

Most observers who follow the ICO phenomenon agree that in the last few months, the ICO has tended to lose value after crowdsale, with many buyers waiting in vain for the “moon” promised to them once the cryptocurrency reaches the exchange portal.

What is not being discussed, however, is the main reason we are witnessing this phenomenon, and what crowdsale participants, including the rating companies that most of us rely on to make choices, should be mistaken in choosing which ICOs have the highest value, or have the best probability of rising in value after the crowdsale is over.

Although there are many reasons why one could legitimately suggest the phenomenon, there is one fact that I think is probably more responsible for this than most other controversial reasons: the assessment of ICO tokens and the wrong emphasis on “blockchain experts”. ICO advisors’ or ‘technical whizkids’ for erc20 tokens.

I have always thought that the need for blockchain technical experts or ICO technical advisers is exaggerated or even downright wrong when a project is evaluated against these criteria, unless the project is actually trying to create a brand new coin concept. For most ERC20 tokens and copying coins, the real important focus should be the business plan behind the token and the management predecessors and executive profiles of the team leaders.

As anyone involved in the industry should know, creating an ERC20 token from Ethereum or similar tokens from other cryptocurrencies does not require any great technical skills or requires some overpriced blockchain advisor (actually with new software out there, the ERC20 Token can be made in less than 10 minutes by a complete technical beginner.

So technical should no longer be a big deal for tokens). The key must be the business plan; level of business experience; competence of the project managers and the business marketing strategy of the main fundraising company.

Honestly, as a lawyer and business consultant for more than 30 years in several companies around the world, I can’t understand why people keep looking for some Russian or Korean or Chinese “Crypto Whiz” or “Crypto Advisor” to determine the strength of ICO for what is actually a crowdfunding campaign for BUSINESS CONCEPT …

I am of the firm opinion, which is one of the main reasons why most ICOs never respond to their pre-noise. In an age where there is an abundance of software for creating tokens, platforms and freelancers, the disproportionate focus on the experience of the blockchain or the technical capabilities of the promoters is mostly wrong. It’s like trying to assess a company’s likely success based on the ability of its staff to create a good website or application. This train left the station long ago with the proliferation of technical hands on freelance sites like Guru; Upwork, freelancer and even Fiverr.

People seemed too caught up in the hype and technical skills of the people who promoted ICOs, especially ERC20 Ethereum based tokens, and then wondered why a technically superior Russian, Chinese or Korean person could not secure the company’s end of business after the fundraising campaign. .

Even many of our ICO rating companies seem to have allocated a disproportionate number of points to a team member’s crypto experience, how many crypto advisors they have, and the ICO success experience they have on their team, instead of focusing on the core business model to be created with the funds raised

Once it is understood that over 90% of crypto and ICOs have just symbols created to raise a crowd of funds for an idea, and simply not a sign of an account, then people’s accents will shift from technical angles to more appropriate work. to evaluate the business idea itself and the corporate business plan.

Once we move into this era of valuation, before deciding whether to buy or invest in a cryptocurrency, then we will begin to assess the future prospects or value of our tokens based on solid business considerations such as:

– Swot analysis of the company and its organizers

– Management competence and experience of team leaders

– the stability of the business idea beyond the creation of a sign

– The marketing plan and strategy of the company to sell these ideas

– The ability to deliver the main products to the market

– The customer base for the products and services that will be created by the company

– and a basis for designing market acceptance

What most people failed to realize was that the potential for increasing the value of their tokens after an ICO did not depend so much on something technical as on the good things happening in the fundraising company and the supposed increase in the company’s valuation. as he distributes his business plan and offers his business products.

Of course, buying cryptocurrency is not buying shares and it does not buy the security of any company. We get this, but tokens react the same way stocks react to good or bad company news. The only difference is that in the case of cryptocurrencies, the effect is increased 100 times.

So when a company reaches a financial or business milestone, the price of its token on the stock market will rise … and it will fall rapidly when nothing good happens. So, what the company will do and how it will do it after the ICO must be extremely important for anyone who does not want to see the value of his tokens, fallen and stay forever.

Of course, the tokens that most tokens will drop after the tokens go into cryptocurrency after ICO, because of those who want to win profits immediately, but whether it will ever come back to give you the expected multi-digit winnings will always depend on the criteria I have already mentioned above. Once you have purchased a token, the value of the “crypto wizard” and “technical whiskey” becomes zero in terms of the potential of your token for the moon.

Following this reality, I think a smart crypto buyer or investor should focus less on how many crypto advisors a project has or how technically sound the team is (unless the company’s highlighting business is technical in nature) and focus more on the management, marketing and potential customer base of the company, which raises funds through ICO.

In other words, allocate more points to the business and management of the ICO, rather than technical jargon, which will not help your token in the market when the money is collected!