Statistics could no longer be ignored. Most ICOs load, and stay there, once the tokens reach cryptographic exchanges, once the frenzy and the "FOMO" participating in the crowd sale are over.
Most observers closely watching the phenomenon of ICOs agree that the trend in recent months has been to lose value after the sale, as many buyers waited in vain for the promised "moon", once the cryptocurrency is exchanged. portal.
What is not discussed, however, is the main reason we are seeing this phenomenon, and what the participants at a popular party, including the rating companies that most of us are counting on to do a choice, should be wrong in choosing which ICO has the most value, or has the best probability of gaining value once the crowdsale is completed.
Although the phenomenon may legitimately be invoked for many reasons, there is a fact that I believe is probably more responsible than most of the other opposing arguments: the valuation of ICO tokens and the mistaken emphasis on "Blockchain Experts", "ICO Advisors" or "#"; technical whizkids for erc20 tokens.
I've always thought that the need for blockchain technical experts or ICO technical advisers is exaggerated, or even downright inappropriate, when a project is judged on the basis of these criteria, unless the project is really trying to create a new coin concept. For most ERC20 tokens and card pieces, the most important point to consider should be the action plan behind the token and management history and the leaders profiles of the team leaders.
As all players in the industry know, creating an ERC20 token from Ethereum, or similar tokens from other cryptographic currencies, does not require technical skills pushes and does not require the intervention of an overvalued blockchain advisor (with new software, an ERC20 Token can be performed in less than 10 minutes by a complete technical beginner.
So, the technique should not even be a big problem for the chips anymore). The key should be the business plan; level of business experience; the project leaders' competence and the corporate marketing strategy of the main company collecting the funds.
Frankly, as a lawyer and business consultant for more than 30 years for several companies around the world, I can not understand why people continue to look for Russian, Korean "Crypto Whiz" or "Crypto Advisor" or Chinese to determine the strength of an ICO. fundamentally a crowdfunding campaign for an BUSINESS CONCEPT …
I firmly believe that this is one of the main reasons why most country offices never respect their enthusiasm before launch. At a time when token-creation software, platforms and freelancers abound, the focus is disproportionately on the blockchain's experience or the technical capabilities of the promoters. It's like trying to value the likely success of a company based on the ability of its staff to create a good website or a good application. This train left the station a long time ago with the proliferation of technical hands on independent sites like Guru; Upwork, freelancer and even Fiverr.
People seemed too engrossed by the hype and technical skills of the promoters of an ICO, especially the chips based on ERC20 Ethereum, and then wondered why a technically superior Russian, Chinese or Korean could not be sure. To take care of the business after the fundraising campaign.
Even many of our ICO classification societies seemed to assign a disproportionate number of points to the cryptographic experience of team members, the number of crypto advisers they have and the ICO success story. team, rather than focusing on the underlying business model. to be created with the funds raised
Once we understand that more than 90% of cryptos and OICs are simply tokens created to collect participatory funds for an idea, but not for nothing, then the focus will be on the most relevant evaluation work . the idea of the company itself and the business plan.
Once we enter this era of valuation before deciding to buy or invest in a cryptocurrency, we will begin to evaluate future prospects or value of our chips based on considerations valid commercials, such as:
– Swot analysis of the company and its promoters
– Managerial skills and experience of team leaders
– The strength of the business idea beyond the creation of a token
– The marketing plan and the company's strategy to sell these ideas
– The ability to deliver the underlying products to the market
– Customer for products and services to be created by the company
– and basis for projecting the adoption on the market
What most people do not understand is that the potential for value enhancement of their chips after ICO does not depend so much on the technical side as it does on the company that raises the funds. and the perceived increase in its value. she deploys her business plan and delivers her products.
Of course, buying a cryptocurrency is not about buying stocks or buying security at a company. We have it, but the tokens react in the same way that the stock reacts to good or bad news about a company. The only difference is that in the case of cryptos, the effect is amplified 100 times.
So, when a company goes through a major financial or commercial milestone, the price of its currency token will increase … and it will go down quickly if nothing good happens. So, what the company will do and how it will do after the ICO should be of utmost importance to those who do not want to see the value of its chips fall apart and stay forever.
Of course, most of the chips would collapse once the chips would have reached a cryptographic exchange after the OCI, because of those who want to take immediate profits, but the question of whether it would ever come back to you giving the expected multi-figure profits will still depend on the criteria I've already described above. Once you have purchased a token, the value of the "Encryption Experts" and "Technical Experts" goes to zero compared to the potential of your tokens to reach the moon.
Following this reality, I think that a smart buyer or cryptographic investor should focus less on the number of cryptographic advisors of a project or on the technical quality of his team (unless the highlighted activities of the company is of a technical nature) and focus more on the management, marketing and potential clientele of the company that raises funds through an ICO.
In other words, allocate more points on the business side and the management of the OIC than by technical jargons that will not help you in the market when the money has been collected!