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Is an Ico really necessary to improve your startup?
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Is an Ico really necessary to improve your startup?

Why do you need a token for your biz? Every blockchain project has a team and a group of advisors. Understanding the capabilities of the team, their engagement in the project and their view is a critical in deciding the type of outside help needed for a successful project. Advisors are one way to bring creditably and attract the attention of the media and the community, but it is important to understand what each advisors actual role and contributions will be. Do you really need to blockchain to run your company? Unless the additional resources needed to build the blockchain and incorporate it in your business are adding value by making your goods or services cheaper, better, faster or more reliable. There is no legitimate reason to incorporate blockchain into your business. With the exception of a security token, an Ico is a way of distributing a token to as many as possible in the network. ICOs allow the community and developers to share in the success of the company in a way that survives the hype and brings real world value. What are you really trying to achieve? Is there a market for this project? Does this project disrupt the market of application or is it an evolutionary project? Does it make sense for other market players (including corporates) to collaborate or be stakeholders? Support from other blockchain projects could be a possible advantage. Are you Working with specialized partners in terms of credibility? Does the addition of blockchain give you an advantage over competitors and what is the unique value proposition of the project? Technology and the building blocks of your campaign! What is the roadmap? The tech stack? Is it credible? Is there a MVP or just a white paper? Do you have an economic model? Is there a Github for the project where third parties could check the credibility and reliability of the code and the projects progress? Do you have the resources for legal and marketing? A successful Ico typically has a huge marketing budget for PR and conferences.

Conclusion

I see a lot of very interesting new ICOs where the token has no real value to the business and the founders are claiming blockchain has solved the companies problems like magic. I also see other projects where it is obvious that they have added blockchain as a way to fundraise by jumping on a hot trend, although previously they could not get their startup funded.

Disclaimer This article is for informational purposes only and does not constitute investment advice and is not a recommendation to participate in any crowdsale, or Intial coin offering.

Disclosures The author is not referring to any specific projects in this article .

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James Sowers

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