Doing an ICO before you have a product

ico_traction

The question of when you should raise your ICO is often contentious and often overlooked by new entrepreneurs seeking to build their dreams. There are two ICO key trends around what kind of projects are raising funds.

User Traction Wins

We are seeing more ICO’s that have existing businesses backing the ICO projects. Often these businesses are connected and can help bring the new projects that are blockchain related to the market.  A good example of this is Telegram ICO which is seemingly getting investor interest for their huge $1.2Bn ICO. This ICO is not closed yet but does serve as a good example of user traction appealing to investors. Some of the reason for the telegram interest is due to the ICO use cases around community development.

Traction for these projects will be viewed in the following way:

(Number of users) x (Product related to blockchain/ICO) = ICO relevance 

The “ICO relevance” is the quotient that will used by funders to help them establish their interest in the ICO.

Core tech problems

Building core blockchain technology is also a good way to raise funding from the community. The technology needs to be dealing with core developmental challenges such as Bluezelle (database) or Filecoin (storeage) that deal with blockchain technology projects that fill important gaps in the ecosystem.

Other ICO Funding

There will continue to be funding for good teams, niche ideas and scams that involve offering quick returns and slick marketing. However as the ecosystem matures there will be a rising to the top of the better projects and this will make it easier for funders to find good projects. This will likely happen with the help of licensed exchanges and ever growing community of money finders and financial advisors.

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