How Can ICOs Survive the Crypto Crash?
Crypto reigned supreme in 2017 with Bitcoin hitting a record high of $20,000. Everyone wanted a piece of digital currency pie. But what caused the market to turn bearish? And is it possible for ICOS to survive the almighty crypto crash? Let’s take a closer look!
What drove crypto volatility?
The crypto sector is notoriously volatile. Price fluctuations are expected. Yet in 2018, bullish sentiment spiralled downwards. The question is, why?
- Exchange Hacks
Malpractice dominated the headlines with hackers stealing $1 billion from crypto exchange hacks in 2018. A whopping $532 million was stolen from the Coincheck alone. In fact, the daily amount stolen from crypto exchanges averaged at around $2.7 million.
- Tightened Regulations
The unregulated, decentralised nature of cryptocurrencies attracted investors. But as countries such as China introduced regulatory policies and social media platforms such as Facebook and Twitter banned ICO adds, the appeal dwindled.
The SEC’s decision to reject Bitcoin ETFs over concerns regarding ‘market manipulation’ did nothing to help cryptos recover either. And then there was the Bloomberg interview where billionaire and CEO of Coinbase, Brian Armstrong, stated how widespread adoption of crypto was still a long way off. You can watch that impactful speech right here.
What Does This All Mean For ICOS?
Of course, crypto sentiment affects ICOs with the ICO market facing multiple challenges. Many investors, for instance, are spooked by the SEC’s crackdown on the sale of digital tokens for registration violation reasons. And with many ICOs in the red, meaning investors who bought tokens lost money, there has certainly been a black cloud over the industry.
That said; it’s not all doom and gloom. There were some ICO success stories in 2018. EOS raised $4.1 billion while Dragon raked in $320 million with investors being attracted by a decentralised currency for casinos.
According to TopICOList, there are also many ICOs to look out for in 2019 with the following topping the list.
How to Survive the Crypto Crash!
So, what’s the trick to surviving within a sector that’s notoriously volatile and plagued by exchange hackings and bad press? Well, one avenue is high-quality content as this helps to set you apart from the bad players and shows exactly what you have to offer.
Here are some useful tips:
- Provide clear, concise information
Investors have become savvier since ICOs first became popular. They’re going to delve deep into your project. So, it’s your job to provide clear, concise and relevant information via a beautifully designed website. Below is an example of easily digestible and clearly presented information about Dragon Coin.
Takeaway #1: Make use of short, sharp paragraphs including key information.
Takeaway #2: Use headers to catch attention, evoke interest and break up content.
Takeaway #3: Think about colour contrasts on your website and how to present information. Is your part of the web attractive and easy to read? Does it look professional?
Takeaway #4: Consider navigation. Is your content easy to find? If it’s not, your bounce rate will increase. Your website should be so useful that people want to see more.
In a world plagued by scams and bad players, it’s essential to be transparent. Provide clear token information as well as token allocation details so nothing is hidden from investors.
Takeaway #1: Use clear imagery and bright colours to explain your ICO token allocation breakdown. Remember, the figures you use should remain consistent throughout all marketing materials such as your whitepaper to avoid confusion.
Provide a well-written whitepaper
A detailed and accurate whitepaper is the backbone of your ICO activity. It should feature key details including the problem you’re setting out to solve and essential tokenomics. Your ICO should also feature a roadmap as this comes back to being transparent and honest with investors. Investors must be told what returns to expect and when. A whitepaper is serious business, so always ensure it’s written by professional writers and passed through the compliance team.
Below is an example from the Mobius ICO which aimed to close the gap between the internet world and the blockchain world.
Takeaway #1: Content is more than the written word. Use graphics that help divide information and make it easier for investors to absorb.
Takeaway #2: Visual representations of your mission show investors you’re not afraid to share essential details. And prove you know what you’re talking about.
Create explainer videos
Explainer videos are a great way to introduce your ICO and the team behind your project. They can explain difficult concepts in a straightforward way and can be shared across multiple social media sites. Bitesize videos of less than 10 seconds can be used to entice people to a more detailed video which can be embedded into your website.
Here at Contentworks, we’ve teamed up with many top ICOs to produce explainer videos directed at investors. With well-written video scripts and a professional presentation, such material can work to support your whitepaper and any ICO pitch.
Takeaway #1: Bring your content to life! Offer great information in an accessible form. Remember, video content will account for 80% of all internet traffic by 2020. So, it’s crucial to keep up with the latest trends.
Takeaway #2: Make sure your video is on-brand and professional in tone. Essentially, you’re trying to show that you’re a legitimate project to an audience that has become deeply mistrusting. The more creative you are, the more likely you are to garner support.
Be creative on social media
ICO ads including ICO-related keywords are banned from social media, but that doesn’t mean you can’t have a strong online presence across multiple channels. Indeed, you can become a storyteller, going behind the scenes of your project through live video, or pre-recorded material. You can create stat-based infographics about the sector or join in conversations posted by thought leaders. Indeed, you can also create thought-leading blogs yourself to post on LinkedIn. Or, how about blogging about ICO/crypto/blockchain influencers and tagging the relevant people in order to increase exposure to your brand?
You can even team up with influencers to promote your ICO initiative. That’s exactly what Sgame Pro did when they partnered with world-leading YouTuber Pewdiepie to shout about their blockchain based gaming platform.
Takeaway #1: Get creative. Influencer marketing is a wonderful way to tap into a new and extensive audience and gain traction for your brand.
Takeaway #2: Don’t shy away from social media just because of the ICO bans. Ads are not allowed but you can invest in many other content types to achieve success.
Contact Contentworks for financial services content that will talk to your audience.
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