I Don’t Approve of What Is Going on in the ICO Promotion Market

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by Polina Chernykh · 4 min read
I Don’t Approve of What Is Going on in the ICO Promotion Market
Photo: Jared Cherup / Flickr

With the product in mind, the startup decided to move away from traditional ICO model and is focused on the app development, not the marketing campaign.

I do not approve of what is going on in the ICO promotion market.

The entire market is an elegant and idealistic market, which began its evolution process with the appearance of Ethereum, a cryptocurrency created by Vitalik Buterin. Thus, this quickly becomes a volatile story about money. Not about a product, not about startups, not about “blockchain will change the entire world”, no. It is all about the money. A story about the money, which creates more money, which, in turn, creates more money.

Do not misread me – money is not necessarily bad. The main issue here is how to allocate them adequately, and how much certain services actually cost. Allow me to clarify with a few examples:

The market is inadequate. The costs of mass media services are going through the roof; their price is often overestimated, what results in overpriced services. Three out of four advisors will not even bother asking about the current stage of a product or your future plans – they will simply send you their price-list in LinkedIn.

The black market for Bitcointalk accounts is also growing in price. A simple junior account with 30 replies in Russian (on the “local” sub-forum) costs from around 70 to 80 USD. As a result, the average startup inevitably comes crashing with the deceiving reality: in the best-case scenario 60% of the total funding raised goes for the actual development of the project and the product:

  • 5% for the burden of
  • 7% for wages;
  • 15% for the media;
  • 15% for Escrow / advisers.

The founders are then left absolutely clueless about how to provide a report to investors. In such cases, classical crowdfunding instruments such as Kickstarter suddenly seem more appealing. After a long and heated discussion regarding how to lead our campaign and what is truly necessary for a successful ICO, we decided to step away from the classical model.

Here I will briefly explain why you should invest in us:

  1. While the majority of the ICOs are busy with marketing – we are working to improve our product. Because we know how to create a product, because the money we are raising is for our product. Because the product is what actually matters, and not the marketing.
  1. Our investors profit because the mechanics behind the value of our token is very transparent:
  • It will be more beneficial for the players to purchase the token according to the stock exchange rates, rather than buying it from inside our application for $1. A quick reminder – each token is trading at $0.25 during the pre-sale, and is offered for $0.50 during the main ICO.
  • $1 is not the limit. As soon as the monthly turnover exceeds $50,000,000 – the deficiency will become apparent.
  1. We do not carelessly waste our budget.
  • You will not find 1000 advisors on our website, each of whom has received $5,000 to $15,000 and who would get even more than some green papers with a president’s portrait on it at the end of the sale.
  • You will not find 300 views per person on Facebook, inaccurate targeting, and $10 per click via “ICO” search on Google.
  • You will not find us among the golden and premium sponsored ICOs at blockchain events at the price of $50,000 for 10 minutes of presentation and the opportunity to sell branded T-shirts for $15 a piece.
  • You will not find our giant banners on CoinDesk with $0.10 per view.

The money of our investors will be spent on improving our mobile application, including technical support and resolution of any potential legal questions that may arise between us and the publication of our product.

Besides, the funds will be used to integrate a stock exchange function into the application, improve customer support, develop new aspects in the PvP gaming sphere of trading, whether those are securities or the relation of Dogecoin to Bitcoin.

Because it is only fair to our potential investors.

Blockchain News, Editor's Choice, News, Token Sales
Polina Chernykh
Author: Polina Chernykh

Polina is an undergraduate student at Belarusian State Economic University (BSEU) where she is studying at the faculty of International Business Communication for a degree specializing in Intercultural Communication. In her spare time she enjoys drawing, music and travelling.

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