When living in the modern startup world, one just cannot be unaware of an avant-garde investment market, capable of generating about $8 billion within a year. Yes, we are talking about an initial coin offering that raised exactly the amount in 2018 and has already brought in the investment of over $150 million since the beginning of 2019. And though today it seems that ICO goes through a bad patch, startups still have a good chance to avail of this cryptocurrency-based funding method. The more so that ICO advantages are not limited to getting some bucks for the development of your business idea.
- Raising a mint of money in a short time
Well, getting some bucks won’t hurt, right? Having the inspiring Ethereum’s example with their tremendous $18 million raised within one and a half months in 2014, who wouldn’t be encouraged to give it a try? And while prospective investors have still been crazy about the blockchain crowdfunding, it’s smart to take time by the forelock.
- Leaving red tape behind
As there are currently fewer regulations in the cryptocurrency ecosystem (if any), you are not required to build a traditional company with all the paperwork involved and tons of rules applied. Sure, you need to have your homework done including writing a good whitepaper to earn a high position in an ICO Rating. Yet, this is a piece of cake compared with requirements in venture capital fundraising.
- Evaluating market demand
Maybe, you do have a great product or service to take investors by storm. But maybe you just believe your idea is ground-breaking, while it is half-baked and uncompetitive. Anyway, launching an ICO project is an effective way to get immediate feedback, encouraging developers to come up with more thought-out plans and innovative ideas.
- Building a supportive community
Would you have a direct interest in the progress of something you have invested in? Of course, you would. So, you have a nice opportunity to build a community that will contribute to the development of your product or service even prior to its entry into a market. This is an on-target recipe for attracting early users and also developers to create apps based on your platform.
- Enjoying cheap promotion
By offering bounty programs and airdrops, developers can promote their ICO projects at a bargain price. You can engage users into PR and advertising campaigns, rewarding them with tokens for their posts on social networks, forums, and blogs, as well as for any other helpful activity you need – isn’t it a win-win?