In this guide, we will distill the IDO strategies that we have picked up from observing the best IDO/ICO launches in the industry.
- 1. Having an excellent whitepaper for your ICO
- a. The Problem/Opportunity
- b. The Solution
- c. What is the addressable market
- d. Revenue forecasts
- e. The team
- f. Tokenomics
- 2. Gathering Awareness for your ICO
- 3. Building a community around your ICO
- 4. Countdown to the perfect ICO Launch
- Conclusion: Planning is key to your IDO/ICO success
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1. Having an excellent whitepaper for your ICO
Before marketing your IDO/ICO, you have to make sure that the problem or opportunity that your IDO project is aiming to solve is easily appreciated by the community.
In your whitepaper, you should address the following clearly:
- The Problem/Opportunity
- A Summary of the Solution
- What is the addressable market
- What are your revenue forecasts
- The team that is best suited to make this idea a reality
a. The Problem/Opportunity
An easy way to gauge whether your problem or opportunity is clear is by asking yourself whether your target user will use your project regardless of whether you have a token or not.
Most projects that are not sustainable after bull markets are those that have attracted a majority of speculators that are just hoping to make a quick profit from the project.
If your problem/opportunity is one that wouldn’t exist even in a bear market, then it’s a pretty good time to backtrack on your idea before launching it.
b. The Solution
After you have clearly defined the problem, this is the section where you explain the “How-to” in solving the problem of capturing the opportunity.
You should also differentiate yourself from other solutions in the market and clearly state why the existing incumbents do not work in the long run and why your solution will be the last one standing.
Again, if your solution is an imitation or just a 1-to-1 “fork” of another well-known project, it may be a good time to re-evaluate the idea you have.
c. What is the addressable market
How many users can your solution potentially help?
Sizing your market allows you to create a more realistic forecast how much earnings your project can potentially capture and distribute to your token holders.
If one of your key revenue drivers is depending on Total Value Locked ( TVLs ), an easy way to size your market is by looking at the TVL of the chain you are building on and their growth rate to forecast your maximum potential.
d. Revenue forecasts
A project that does not generate revenues or earnings will never be able to reward its token holders. Any project that rewards token holders based on the promise of other token holders buying in later can be easily categorized as a Ponzi scheme by the crypto community.
Make known the different revenue streams that your project will have and also how much is the expected earnings based on realistic milestones.
A realistic milestone can be the closest look-alike competitor you have and their progress in terms of transaction volume, Sales or TVLs depending on your revenue model.
e. The team
Show your investors why your team is the best suited to execute your idea and bring it to fruition.
Any existing experience closely related to the problem you are trying to solve is a plus point.
If your project requires
Tokenomics is a very complicated subject and there is no single tokenomics structure that works for every project.
If your project is not well-funded and you need a longer runway to support your development, you may consider a larger token distribution to team members and seed investors or partners compared to the public sale.
If your project is just a casual fork of another project and you just need to fund your daily operations and marketing budget, implementing a tax on buy/sells may be sufficient to maintain the project while keeping it majority community-owned so that holders are incentivized to spread the awareness on your project.
Also, your tokenomics is also an important optics of your project and can be interpreted differently from what you want to portray.
For example, a short vesting schedule can scare off potential investors because of the fear of project teams dumping on the project.
Here are a few important points you have to consider depending on the scale and objective of your project.
- Allocation of tokens
- Vesting Schedule
- Utility of tokens
2. Gathering Awareness for your ICO
The difference between marketing an IDO and post IDO marketing is that the IDO is a very time-sensitive event.
There is no chance your IDO will blow up on the first day if you do not build a following of your IDO in the first place.
On top of that, you may be competing with capturing liquidity from other popular IDOs on the same day.
Here are some common effective channels for building awareness of your project:
- Influencer or Key Opinion leaders marketing
- Joint AMAs with crypto communities
- Advertising on Crypto niche websites
- Press releases
Always aim for your call-to-action to drive them to your own community channels where you can communicate with them later and build up excitement.
This method also reduces the amount of advertising spend you need for sending follow-up messages to interested participants.
3. Building a community around your ICO
Nothing gets an investor more excited than joining a brimming community of other passionate investors.
Community engagement is your superpower in converting skeptics into loyal fans.
Make sure to install a professional moderator to prevent your community channels from becoming a cesspool of spam and scams that turn away potential investors.
Build easy-to-digest infographics that community members can share and don’t forget to promote active engagers into moderators or VIPs so they get more incentivized to help your project succeed.
4. Countdown to the perfect ICO Launch
Picking your launch date is both an art and a science.
You will need to think about the following:
- Is the hype around ICOs/IDOs at an all-time high?
- Is it a day where most investors are active?
- Are there other competing IDOs targeting the same pool of investors
Nothing is worse than launching an ICO/IDO in a bear market or having the majority of your day-1 liquidity sucked away from an out-performing competitor.
Make sure to have a strong and engaging marketing sequence counting down to your IDO along with clear explanations on how to participate in various languages.
Projects that only focus on the English-speaking community will miss out on the global pool of investors which can be 4-5 times bigger than just the English-speaking community.
Conclusion: Planning is key to your IDO/ICO success
There are many factors underpinning the success of an IDO/ICO. Network with other successful IDO projects and find out the strategy that they used to achieve their success.