There are thousands of crypto projects in the world today, and every month, dozens more join the crypto market. However, although the projects are many, not all of them qualify as good prospects. Some die as soon as they launch, while others can survive the harsh crypto market. Investors often do in-depth research before investing in any crypto project to avoid falling into the trap of investing in dead or dying platforms. The investors will often look at the project’s details keenly from the website or other media reviewing it.
But what do investors look for in the projects? Here is a short guide of some of the critical things investors look for before investing in any crypto project.
Before investing in any crypto project, every investor navigates through the platform’s website, foremost looking for the project’s team. When considering a crypto project, a developer should ensure they have a reliable team and staff who will help complete this project’s creation.
Some experts suggest that the team has a relevance that can be compared to the product itself. If the developer chooses a poor team, the products will have low quality, and investors will stay away.
A good project team must contain experts in different fields, i.e., software development, UI experts, tech gurus, etc. People with a good background in the crypto business will bolster the trustworthiness of the project.
What if a project does not have a team? That is a clear indication of a possible scam, and that will push investors away. The team is one major thing that every investor looks for in a project, and as such, the developers should consider hiring the best staff.
Another critical aspect that all investors check is the project’s whitepaper. As such, it’s vital for any person starting a project to write a good whitepaper that explains the project in detail.
The whitepaper describes the project from the startup date to the final stages of the project’s launch. Moreover, the document should have enough details about what the project aims to solve in the crypto space. The whitepaper should highlight the mission and goal of the company.
Similarly, the whitepaper is supposed to show the all-round review of the project, to make the investors aware of the project and its importance.
A media team for the project is vital for the growth of the project. Any investor interested in a crypto project often researches the project using the project’s media platform.
An exciting project should primarily have a media platform to post the latest updates about the project, the most recent upgrades, and much more information.
The media platform and media team’s role is to advertise and market the project while also passing down information. Establishing good communication between the developers and the probable investors will attract people to invest in your project.
The media team will provide news releases to be posted in crypto publications. One such publication is Crypto Adventure, which accepts guest posts, and is an excellent platform for raising project awareness. The releases should always have accurate details to attract millions.
The project team should also be actively present on social media platforms like Facebook, Instagram, Linked-in, Telegram, Twitter, etc.
Token allocation is another vital thing that investors look into deeply before investing in a project. The developers should ensure they display the name of the token to be used in the platform. This token should have a full description, i.e., equity, utility, or security token.
The token allocation in case of new projects is also essential for the investors. For instance, some token amount often goes to the projects crowd sale, the development team, the media team, etc.
It’s also vital to assure investors of the token dependability, i.e., Will the token be immune to inflation? If so, what mechanisms will ensure that? Answering such questions will give investors assurance of the growth of their wealth.
Additionally, investors want to know where to get the tokens when they want to buy them. List the exchanges that accept the token, and possibly a direct link.
Investors tend to trust a project which has partnerships with other more significant projects. Therefore, the developers should look for companies to partner with, including exchange platforms like Coinbase, Binance, etc.
Therefore when setting up the crypto project, please consider connecting with more partnerships, listing your tokens in great exchange platforms, etc.
Investing in new projects in the crypto world is often tussling, especially considering the risks. To manage or control their risks, investors look deeper into the project and analyze its different aspects.
Projects that have solutions to problems surrounding the crypto world are often good projects to invest in. Additionally, the investor will analyze the project’s team, which will help assure them of the project’s realness. Another important thing that investors look into is the whitepaper, which should generally describe the project in detail.
The project’s media, token allocation, and partnerships are vital to analyzing to avoid falling into scams. Any developer should consider adding enough details to ensure that they attract more investors.
Finally, Crypto Virally is here with top solutions in the crypto marketing world, from video market, content marketing, project awareness, graphic and web design, etc. Visit them for your marketing needs.
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.
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.
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 institutions.
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.
The cryptocurrency industry is entirely virtual, and this makes blogging an invaluable strategy for winning investors into a blockchain start-up. Blogs allow blockchain engineers an opportunity to draw attention and share their stories with potential investors. Developers can have a website for the project, publish all project details, or publicize their crypto project via Cryptoadventure.org.
If targeting institutional investors, you could even go to their website and engage them in the comment section. A thoughtful comment is likely to draw their attention, and you can build a relationship from there.
Social media is a leading digital marketing strategy that gets your project out to the public and lands you potential investors. A high social media presence helps spread the word out about the new project, quickly drawing blockchain enthusiasts to it. The aim is to get noticed by potential investors and have them reach out for more details.
Project teams can take active roles in posting updates on platforms and pages. You can also find potential investors’ profiles and pitch them or leverage influencers’ high social media presence to your advantage.
There are several blockchain conferences and networking events around the world where discussions about the blockchain ecosystem happen. The Blockchain Expo North America is among the expected 2021 events with an expected turn up of more than 10,000 attendees. Such events attract various entities, including other technology providers, governments, and potential investors in new blockchain projects.
Developers can secure an opportunity to provide insights to attendees and unveil their innovation. It is an excellent opportunity to meet and actively discuss with potential investors about the project. The internet can always provide details about upcoming events, so you can scour relevant websites to see conferences likely to attract interested investors.
Bitcoin was the first blockchain project, and Satoshi Nakamoto was quite successful in it. Today, investors pour money into different cryptocurrency projects, although it does not mean they channel their funds into every other blockchain project with the same energy.
The new technology is earning impressive returns for many, but only if the investments are viable or out of sheer luck. Some investors are still experiencing dramatic losses in the same industry.
Developers must present realistic crypto projects and take active roles in promoting them to find investors. For more information on crypto project marketing campaigns, visit our Services Page.
Crypto mass adoption takes over the financial system as people opt to use digital currencies in their daily activities. On top of that, numerous projects targeting different customers continue to flood the market advocating for new financing methods.
However, specific approaches require implementation in order to attract and maintain investors. Like any other business, crypto platforms require effective strategies to expand their user-base.
Without a promotional tactic, investors may quickly lose interest in the ecosystem. The platforms suffer a tragic downfall later on after investors start withdrawing from any engagements with the ecosystem. This segment covers some of the promotional approaches utilized by crypto platforms to boost the virtual currency investment’s zeal and excitement.
Airdrops have proven to be the most effective ways of stimulating a trader’s willingness to invest. It entails rewarding users digital tokens or cryptocurrencies for free on their respective wallets.
The primary function of airdrops is to build a platform’s image to its potential customers. To receive airdrop rewards, users need to complete small specific tasks.
The task could be as simple as following the platform’s social media pages. In other cases, users who possess a particular amount of digital currencies such as Bitcoin become automatically eligible for airdrop gifts.
Airdrops serve other purposes besides establishing a platform’s image to the public. Sometimes, users may not get the chance to participate in ICOs of some extremely prominent crypto projects. Therefore, the new protocols may find an initiative of rewarding its loyal and willing investors as a sign of appreciation. Airdrops also ensure an equal allocation of digital-assets across users worldwide.
Furthermore, ICO activities are banned in several countries, making it harder for investors to partake in the crowdsale event. Hence, distributing the airdrops gives users access to the digital asset unavailable to investors living under strict jurisdictions.
Crypto mining is not a new concept in the digital currency world, mainly for the PoW ecosystems. Mining is an alternative way of increasing the users’ urge to invest as it incentivizes miners to validate transactions on the blockchain network.
Since most crypto platforms are decentralized, miners on the distributed ledger oversee the whole transaction operation and arrange the transactional details into blocks. However, the entire mining process is relatively expensive, considering that it needs significant amounts of electricity and powerful computers.
Either way, miners are assured of adequate incomes for anyone who solves the verification algorithms faster. Mining gives investors the motivation to become a transaction validator in exchange for securing more gains. The incomes are usually in the form of the platform’s digital currency.
Cashback tactics work by offering users back a portion of every purchase they make. The method is standard for credit holders who are encouraged to trade actively and receive rewards.
Furthermore, the purchase benefits are offered back through direct deposits, gift cards, cheques, to mention but a few.
Cardholders can also redeem their rewards regularly.
Some crypto ecosystems deploy the same mechanism in a bid to retain their users and develop investor excitement. Wirex, for instance, awards investors with a cashback rate of 0.5% for every bitcoin purchase.
The platform also promises users a rate of 0.75% for venture capitalists holding their native token(50,000 WXTs, to be precise). On the other hand, Crypto.com applies the same cashback mechanism in that investors receive a 3% bonus for anyone who stakes approximately 500 MCOs.
Unlike PoW mechanisms, Proof of Stake systems is usually less labor-intensive. Here, users can become node operators depending on the amount of stake they have. Stakers have a bigger chance of running a node if they own a significant number of digital coins.
Delegated Proof of Stake procedures grants stakers the exclusive right of transferring the validation responsibilities to other nodes. Both mechanisms are a profitable venture for investors who wish to run nodes and verify transactions. Additionally, some crypto projects incentivize users elected as delegates subject to traits like honesty and good conduct.
The FFP is yet another promotion method that urges airline users to garner points redeemable for flights. This model practically retrieves points from the amount paid to the distance covered by the airline.
Aeron operates as an FFP ecosystem dealing with flight services. Users investing in the platform’s token (ARN) and the platform’s aviation safety projects can earn the CryptoBonusMiles tokens.
In every mile a user flies, he/she earns 1 CBM. After accumulating enough CBMs, investors can redeem them and go for discounted flights.
In a nutshell, crypto projects require impressive endorsement tactics to gather more users onto their platform. Creating a sustainable ecosystem serves as the primary objective of these assets. Furthermore, investors continue to anticipate more from developers who bring in fresh ideas on investing with cryptocurrencies.
Additionally, rewards such as airdrops consume less time and energy, while mining rewards consume a large amount of time and electricity. On the other hand, PoS, DPoS, and cashback mechanisms are less energy-intensive. For FFPs, traders have the chance to invest, fly, and receive additional rewards.
Investors may choose which promotion tactic to sail on while considering some of the digital currency space risks. Otherwise, the result leaves investors in a better place as they enjoy the rewards.
Crypto Virally is an all-in-one platform incorporating crypto-related material and marketing services. At a small charge, Crypto Virally will walk you through every marketing strategy you might need for your start-up project.
The marketing system is ready to provide 24/7 support with its dedicated team of experts. Book a consultant from Crypto Virally and receive a free 30 mins consulting session with our industry experts. Clear your doubts, know where your project needs improving, take everything to the next level, and much more!
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