Introduction
Token offerings became very popular sometime in 2016, then faded out of public consciousness during the crypto market downturn of 2018-2019. They only regained popularity in 2020/2021 when the crypto market rebounded as capital stranded in pandemic-battered markets poured into new crypto-based outlets. The growth of the DeFi industry and decentralized exchanges fuelled this rebound, as have the new Metaverse-themed crypto gaming projects.
With these changes, have come a rebranding of the nomenclature assigned to the fundraising ventures of blockchain projects. These used to be known as initial coin offerings, but are now known as Launchpad projects, Initial token offerings (ITOs), initial exchange offerings (IEOs) or Initial DEX Offerings (IDOs).
Whatever the name assumed, the steps taken to ensure success have not changed from 2016. If anything has changed, it is the fact that scrutiny of these projects has increased. So it is essential to make your token offering successful by incorporating some of the steps shown below.
Step 1: Conceptualization and Assembling a Team
If your project does not have any actual use case and is without a sound and well-articulated concept, the project may fail down the road. An example of a project which lost its way is EOS. In comments contained in a prepared remark that Coindesk reported on, CEO Yves La Rosa declared the project as “a failure” and called the token a “terrible investment.” La Rosa blamed the project’s backers for the project’s issues. This is a project which raised $4.1billion in 2018 (unprecedented at the time). Yet, the project has floundered.
This example shows that without a good concept and a well-versed and skilled team to drive the project and, by extension, the token’s offering, the project could fail. You cannot throw money at a flawed concept and hope it works out well in the end. You should articulate what the project seeks to achieve, what problems it will solve, and how it aims to attract mass adoption of its token.
When it comes to creating a team, you need experienced people with varied skillsets to deliver specific metrics properly. New projects need a strong marketing team. Cybersecurity experts, developers, and project engineers form another component in the chain. You may even need an investor with some initial cash to get the project going for some time before new funds from the token offering come in. This is probably the most crucial step in achieving a successful token offering.
