A lot about the popularity or mechanism of ICOs can be understood by simply analyzing the past ICO projects which failed or succeeded.
If you’re looking to invest in an ICO (Initial Coin offering), you must read this article to find out the various things associated with a token sale.
Lack of transparency
After analyzing a number of past crypto sales and projects, one thing we have realized is that there is nearly no transparency in the way cryptos work.
An investor has no way to know how and where their invested money is actually being utilized. Yes, most ICOs will give you a token distribution hint, but that is not self-explanatory and usually miss important details.
Also, sometimes, there is no information about the total tokens, min/max contribution limits, hard/soft cap, pre-sale token supply, and the start and end dates of ICO.
As we noticed in the ongoing trends, most ICOs investors turn out to be unhappy with their investments. This is because the ICO industry is rapidly losing its credibility and reliability. With no specific standards and anyone allowed to launch an ICO and sell their tokens, it has become nearly impossible for investors to find good ICO sales to invest.
Well, I won’t deny that most ICOs out there are fake, but again, there are some good ICOs as well, which are genuinely working to make it a better world with their realistic projects.
Take the example of Pieta.
It is being developed with a focus on solving the energy problem of different industries. Pieta is developing a blockchain-based solar platform for generating and providing convenient and affordable solar power to high electricity consuming industries such as crypto mining.
Centralization of tokens
Even though most ICO projects claim to be decentralized, the actual token ownership or investment in completely centralized. What it means is while there are many ICOs running at any time, most of the investor interest is limited in only a few of them.
The ownership distribution of tokens is centralized among a few projects. Investors do not even consider the other project, either because of negative marketing or because their first experience with them was not so good.
Now you how investor insights actually contribute to making an ICO a success or failure. By reading these insights and analyzing the investor behavior properly, any upcoming ICO can increase their probability of success by optimizing their products/project for more customer friendliness.
One can surely attract more investors and bring more people to their ICO by keeping things transparent. Give people more information about your project, what it is, why it was created, how it works and specifically, how it will benefit them, etc.