Types of people in ICO’s


There are many different types of people in the ICO world but because this in many ways is a fringe ecosystem it is has many different dynamics than traditional business or startup environments that are more mature.

Early Tech geeks 

There are a set of early tech guys/girls who bought in early into Bitcoin and the ICO world. They are traditionally coders and tech guys who have spear headed the ICO environment and rightly should take credit for the current ICO ecosystem. Usually these

Tech guy doing an ICO  

There are pure tech guys who are building technical solutions that often deal with core blockchain technology ecosystem developments such as storage, databases, identity etc. These are often the most appreciated ICO’s in the market.

Business guy doing an ICO

There are many business guys who don’t know anything about blockchain however they have heard that an ICO is a great way to raise capital. The business guys are looking for experts to help them do an ICO.


ICO’s are like IPO’s and have ambiguity around the legalities of whether or not the proposed ICO token is a security. They also help with how and where the tokens should be launched and hosted as a trust, foundation, business etc.

Token Exchanges 

Token exchanges are the new stock exchanges and at the ICO networking events etc. These exchanges are looking for new deals and finding buyers for their networks.


Government representatives often come to conferences and networking events in order to understand the new technology.


There are guys on the fringes of the ICO market that often try to support ICO’s, OTC and other services around the ICO ecosystem.

ICO Promoters

 There are many promoters that help businesses do ICO’s. They work as agents and find

Institutional employees

There are also lots of employees from corporate organisations that are looking at blockchain initiatives and some are trying to understand the opportunities for their businesses and possibly themselves.


Why have a whitelist of token buyers

ICO whitelist

All ICO’s should create a whitelist of ICO buyers 

Whitelists have a number of benefits for ICO’s:

  1. Identifying your buyers
  2. Establishing interest
  3. Doing KYC/AML checks
  4. Capturing user data
  5. Building rapport

It is relatively easy to capture the data by allowing customers to create accounts.

How ICO Whitelists work

Whitelists are a list of pre-approved token buyers. The smart contracts only accept purchases from buyers that have their wallets pre-approved to buy the tokens and will automatically reject token buyers that are not approved by the smart contract.

Conducting KYC/AML

It is important to do Know your customer (KYC) checks and anti money laundering checks (AML).

KYC is for an ICO is basic requirement that involves getting an identity document.

AML is checking that these individuals are not on a list of sensitive individuals (known criminals, politically sensitive individuals and any other individuals that governments have deemed to problematic).

Building Rapport

Establishing rapport with your potential token buyers is important and can be done through sending emails with ICO updates, company news etc.

You can also promote other communication channels such as your Slack or Telegram group.

Doing an ICO before you have a product


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.

Market Trend: Ecommerce ICO’s incoming

As investors and entrepreneurs we have seen many iterations of the e-commerce over the years. Traditionally this market has seen low margins and even lower barriers to entry. A quick glance at Tokenmarket upcoming ICO’s shows that in the next week there will be 3 ecommerce ICO’s out of the 10 featured on the site.

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Size of ecommerce ICO’s

Traditionally the ecommerce ICO’s have raised smaller amounts and have not had strong use cases for their own coin’s. In ICO reports ecommerce has not traditionally even been a category and this gives a good indication of the lack of appetite for these offerings historically. A notable exception is likely to be Overstock ICO who have indicated they are looking to raise $500m in their ICO later this year on tZero.

What is interesting is that they in fact plan to sell off their retail business according to their CEO (Patrick Byrne) and focus on their blockchain businesses.


What does this mean for traditional e-commerce retailers and ICO’s?

The use case for a token offering specific to one particular ecommerce store is low when you think about utility tokens. However in the future with security tokens this may change as their could be more economic incentives offered vs technological rationale on why the new coins may have more value in the future.  The fact that Overstock is getting planning to move away from the retail space may tell you something about this opportunity or just be an indicator that they don’t fancy the prospect of continuing to battle it out with Amazon.com the behemoth in the market.

ICO Market Trends and News

The ICO market is fast moving and its interesting to see the volumes, capital and sectors that are raising funding.

A quick look at the types of ICO’s and their average funding show that Dapp marketplace, blockchain, distributed storage have attracted the most funding. This is part of an overall trend towards investors wanting to invest in fundamental building blocks over the blockchain ecosystem (storage and core tech). This could be for two reasons:

  1. It makes sense to back core technology as crypto currency is still in its infancy.
  2. Many of the early crypto adopters are technical in nature and can understand these projects.

ICO Project Types

The funding volumes have started to become consistent and have not fallen off as much as some of the doomsayers were predicting.

ICO Capital Raised

The interesting trend is that the average funding has been growing which is an indicator that the number of ICO’s successfully raising funding is going down. The indicators are that there are lots of ICO’s taking place however the funders are becoming more discretionary in the way they are selecting ICO’s.

ICO Average Raise