How to create a value in the time of ICOs
Many people discuss the potential of creating a value in an event of ICO. When a group of scientists create a legal entity and then raise funds to pursue their dream — this is ok, right? But what if a group of people without masters, MBAs or PHDs, or even any extensive professional experience try to do the same?
ICO is a unique way for all the people to create something from nothing and, actually, raise money just for the idea and the team (tricky) they have. In fact, multiple cryptofunds use different approaches to anticipate potential chances of ICO to be successful, but in fact — there is an uncertainty level, which diminishes most of the models. As a result, ICO funding becomes quite similar to betting in a casino.
Why this happens? One of the reason is that if a team raises enough funds to execute its idea — rarely it has a motivation to pursue the same idea after they have some fiat cash on account. They start recruiting high professionals, paying salaries, trying to manage organization. They believe that all the problems can be solved with another $10k of salaries, extra budget for marketing, etc. But, in fact, they are very wrong. Without experience of bootstrapping, without agile structure and clear feeling of the market they are born to die. ASAP.
Until the moment they created something — which is a unique moment, which distinguishes a regular commercial person from a visionary and inventor — they just spend their backers funds. Creating no value for society. From my experience, which I cannot claim is at the expert level, still I can see that 95% of those, who successfully raise funds through ICO have lack of understanding and so-called “good execution skills” to make their dream true. They create some web-sites, pitch on different events, but there is still a huge gap between that and the value they SHOULD HAVE CREATED up to date.
It looks like the entire industry pushes people pursue the same route. But the industry is not a person, who shall pursue the startup mission. The industry is just a mandatory skeleton of an emerging trend. If you want to be successful in an ICO — one needs to pay commissions to everyone: marketing, sales, PR, road show, etc. But launching a successful ICO campaign is their business, not yours, as an entrepreneur. And it is you who would stand up tomorrow and explain your token holders why you have lost their money.
There is a lot of scam on the market. Many advisors claim they are good, but they just bullshitting you. Many people claim they are angel investors, though after they made $100 check. Many project, who raise funds, provide RIDICULOS 75% of discounts on their tokens. People, don’t you see that the cheap cheese can only be in the mousetrap?
Couple of words I want to tell about our experience in preparation for an ICO for Discoperi (www.discoperi.com). Many people reached out to me directly, asking if they can participate in the one. I shall confess, we do consider ICO seriously with a token to be an integral part of our ecosystem. But, please stop me, because we do it differently:
- We will not give huge discounts on tokens. Partners, who trust us, understand the potential for the value and they do not need to have these discounts, as they still expect to get huge return. Large discounts are for those, who want to do cheap and fast money. Sharks, if you want. The good question is to ask — if a project that wants to create something — needs all the money it raises. With such discounts — I doubt it does.
- We recruit (bring to the team) only top performers in the industry. And you know what — they reach out to me directly. For the last few weeks, I received invitation from multiple professionals with 20–30 years of experience in insurtech, automotive, telco industries. And you know what: I am more than happy to ask them to join our team. Because they provide maturity and expertise level we never had before. They are usually very professional and easily distinguish bull-shit. Thus, we are a good fit and start working extensively from the day one.
- We pursue our product with or without funding. It is a hard thing to do, but for us ICO is a way to elaborate efforts, but not to initiate them. Which is totally different approach. Ask any hardware entrepreneur (hardware — because it is just harder to do innovations here) what is the hardest thing to do in business. Most of them would say — pursue the project. Keep working and fighting when “all eyes on you” and “no one gives a f**ck on you” at the same time.
My final advise. If you want to launch an ICO — think about the future. As there is a lot of scam here, people will remember you. Once your current project goes bust, you’ll go for another one and another. People will remember that you were involved in a scam. Thus, don’t underestimate risks. But if you are ready to die for your product/idea/project — then don’t look back. Entrepreneurs are people who afraid of few things, just because they don’t stop in front of obstacles.