Most watchers monitoring the ICO phenomenon globally agree that the tendency in the last few months has been for ICOs to lose value post-crowdsale, with many buyers waiting in vain for the ‘moon’ they were promised, once the cryptocurrency hits an trade portal.
What is however not being discussed is the principal reason why we are witnessing this trend, and what participants in a crowdsale, including the rating companies almost all of us rely on to make a choice, must be doing wrong in picking which ICO Race have most value, or has got the best likelihood of rising in value once the crowdsale is over.
While there are a lot of reasons one could legitimately proffer for the phenomenon, there is one fact that I think is probably more in charge of this than most other contending reasons: ICO token valuation and the misplaced emphasis on ‘blockchain experts’, ‘ICO advisors’ or ‘technical whizkids’ for erc20 tokens.
I use always thought the need for blockchain technical experts or ICO technical advisors is exaggerated, or even outrightly dropped, when a project is judged by that conditions, unless the project is actually trying to create a brand new coin principle. For most ERC20 Bridal party and copycat coins, the real important consideration should be the Business Program behind the token and the managerial antecedents and executive profiles of the Team leaders.
As anyone involved in the industry ought to know, creating an ERC20 token from Ethereum, or similar tokens from other cryptocurrencies, will not take any great technical skill or require any overrated blockchain advisor (as a make a difference of fact, with new software out there, an ERC20 Token can be done in less than 10minutes by a complete technical newbie.
So specialized should will no longer even be a huge deal for bridal party anymore). The key needs to be the business plan; level of business experience; competence of the project leaders and the business marketing strategy of the key company raising the funds.
Frankly, as an Attorney and Business Consultant of over 30 years myself to several companies globally, We cannot I am unable to understand why people keeping looking for some Russian or Korean language or Chinese ‘Crypto Whiz’ or ‘Crypto Advisor’ to determine the strength of an ICO so that is basically a crowdfunding campaign for a BUSINESS CONCEPT…
I will be of the strong view that is one of the major reasons why most ICOs never live up to their prelaunch hype. In an era where there is a good amount of token design software, platforms and freelancer, the disproportionate give attention to the blockchain experience or technological ability of the marketers is mostly misplaced. Is actually like trying to value the probable success of the company based on the ability from the staff to create a good website or app. That teach left the station in the past with the proliferation of technical hands on freelancing sites like Guru; Upwork, freelancer and even Fiverr.
People seemed too captured up in the buzz and the technical skills of individuals promoting an ICO, particularly ERC20 Ethereum dependent tokens and then ponder why a technically superior Russian, Chinese or Korean language guy cannot deliver the business end of the company after the fund-collecting campaign.