How to Find Blockchain Investors for Your Next Crypto Project
Blockchain technology is one of the most feature-rich innovations in the financial sector. It unlocks capabilities that increase access to financial services and a new form of currency, the digital coin. At the same time, it comes with its fair share of shortfalls, including understandability to the average person, scalability, and volatility of digital currencies. For these and more reasons, finding investors in new cryptocurrency projects is not a walk in the park. Most investors are risk-averse and will only back projects that seem viable from the beginning. It’s always good to brace yourself for some rejection, although you are sure to attract worthwhile investors with a great plan in place. Here are a few quick tips for finding blockchain investors when you have a new crypto project.
Identify The Clientele and Source of Revenue
All investors want to be sure that they will earn income from their investments, so the revenue
is a crucial subject of discussion when attracting investors. Every investment is a risk, always
characterized by uncertainties. If you have a new crypto project, it’s upon your team to
convince the potential investors about the potential returns.
Blockchain technology is new and quite complex but carries a great potential for returns on investment. Therefore, projects with ready clients and realistic projected income will generally attract investors for you. A comprehensive whitepaper and a strong marketing campaign is all you need, and wait for potential investors to reach out.
Projects that can solve the current blockchain problems, such as scalability, the consensus mechanisms among distributed ledger networks, and volatility, promise investors a ready client base and fast revenues.
Running an ICO
An ICO is an activity carried out in the blockchain and cryptocurrency space meant to raise
capital for a start-up. It is similar to initial public offerings, although it uses
cryptocurrencies rather than fiat currency.
An ICO creates a direct connection between a company launching a new cryptocurrency project and
investors. ICO’s can be private or public, whereby a private ICO links a specified group of
investors to the project. It could be individuals with a high net worth or financial
Public ICOs, on the other hand, will attract the general public, and anyone can become an investor in the project. Most ICOs begin with the company identifying the objectives of the project and communicating them to potential investors. The company then creates tokens, which are representations of value in the blockchain.
Investors get issued with the tokens, and they can use the product or service launched by the company or wait for their assets to appreciate. The ICO event can, therefore, become a source of capital and investors for the project.