ICO Token Valuation and Undue Emphasis on Blockchain Technical Experts and ICO Consultants

The statistics could no longer be ignored. Once the frenzy and ‘FOMO’ involved in the crowdsale wears off, most ICOs fold and stall once the tokens hit the cryptocurrency exchanges.

Most observers of the ICO phenomenon universally agree that the trend over the past few months has been for ICOs to lose value after the crowdsale, with many buyers waiting in vain for the promised “bear” once the cryptocurrency hits the market. portal.

However, what is not discussed is that the main reason we are witnessing this phenomenon and the crowdsale participants, including the rating companies many of us trust to make choices, are wrong in choosing which ICO is worth the most. or there is a best chance that the value will rise after the crowdsale is over.

While there are many reasons that can legitimately be offered for this phenomenon, there is one fact that I think is more responsible for it than any other controversial reason: ICO token valuation and the undue emphasis on “blockchain experts”, “ICO consultants”. ‘ or ‘technical hunters’ for erc20 tokens.

When the project isn’t really trying to create a new coin concept, I’ve thought that the need for blockchain technical experts or ICO technical advisors is overstated or even completely wrong when the project is judged by these criteria. The real highlight for most ERC20 Tokens and copy coins should be the management antecedents and executive profiles of the Business Plan and Team leaders behind the token.

Anyone involved in the industry should know that creating an ERC20 token from Ethereum or similar tokens from other cryptocurrencies does not require any great technical skills or an overrated blockchain consultant (in fact, with the new software out there, the ERC20 Token is a completely new technical can be done by a beginner in less than 10 minutes.

So technical excess should not be a big deal for verses). A basic business plan should be; level of work experience; the competence of the project managers and the business marketing strategy of the parent company raising the funds.

Frankly, as a lawyer and Business Consultant for over 30 years in several companies globally, I don’t understand why people use some Russian, Korean or Chinese “Crypto Vhiz” or “Crypto Consultant” to determine the strength of an ICO. they are looking for Mainly for a crowdfunding campaign for a BUSINESS CONCEPT…

I strongly believe that this is one of the main reasons why most ICOs never live up to their pre-launch hype. In an age of token creation software, platforms, and freelancers galore, a disproportionate focus on blockchain experience or technical ability of promoters is largely misplaced. It’s like trying to judge the likely success of a company based on the employees’ ability to create a good website or app. This train has long since left the station with the proliferation of technical hands on freelancing sites like Guru; Upwork, freelancer and even Fiverr.

People seemed too attached to the hype and the technical skills of the people promoting the ICO, especially the ERC20 Ethereum based tokens, and then wondered why a technically superior Russian, Chinese or Korean guy couldn’t finish the company after the fundraising campaign.

Even many of our ICO Ratings seemed to allocate a disproportionate number of points to the team member’s crypto experience, how many crypto advisors, and ICO success experience they had on their team, rather than focusing on the underlying business model. it is created due to the collected funds

Once you realize that over 90% of cryptocurrencies and ICOs out there are tokens created to simply crowdfund an idea, people will shift their focus to more technically relevant valuation work. the business idea itself and the corporate business plan.

Once we go through this evaluation period before deciding to buy or invest in cryptocurrency, we will begin to evaluate the future prospects or value of our tokens based on sound business judgment:

– Swot Analysis of the company and its promoters

– Management skills and experience of team leaders

– Strength of business idea beyond token creation

– The company’s marketing plan and strategy to sell those ideas

– Ability to market key products

– Customer base for products and services to be created by the company

– and a basis for predicting market adoption

What most people fail to understand is that the potential for their tokens to increase in value after the ICO is not so much dependent on anything technical as it is on good things happening in the company and fundraising and expected growth in the company’s valuation. presents the business plan and presents the business products.

Of course, buying cryptocurrency is not buying a stock, and it is not buying the security of any company. We understand this, but tokens react like stocks react to good news or bad news about a company. The only difference is that in the case of cryptocurrencies, the impact is multiplied 100 times.

So when a company meets some financial or business milestone, the price of its token on the stock market will go up…and if nothing good happens, it will drop rapidly. So what the company will do after the ICO and how it will do it should be very important to anyone who doesn’t want to see the value of their Tokens go down and stay down forever.

Of course, most of the tokens will go down because of those who want to make an immediate profit after the tokens hit the crypto exchange after the ICO, but whether it will come back to give you the expected multi-digit profit will always depend on the criteria. I already mentioned above. After buying a token, the cost of the ‘crypto consultant’ and ‘technical whiz’ is reduced to zero relative to the monthly potential of your tokens.

After this reality, I think a smart crypto buyer or investor should focus less on how many crypto advisors the project has or how technically sound the team is (unless the company’s emphasis is technical) and more on management, marketing and potential customer base of the company raising funds through ICO .

In other words, spend more points on the business and management side of the ICO than on the technical jargons that won’t help your token in the market when the money is raised!