Have you heard of cryptocurrency? Chances are you might not know that term, but you’ll recognize some form of what it is … the most commonly known is probably Bitcoin. Cryptocurrency is a form of payment that can be easily used on the internet. Now there are several different types of the payments, and when they are introduced to world markets, they come out in the cryptocurrency version of a stock IPO … an ICO or initial coin offering.
In a recent ICO, TenX raised $80 million in just seven minutes. By anyone’s standards … that’s a successful campaign. But what approaches and preparations would be useful in preparing for an ICO as far as communications and cryptocurrency public relations prior to the opening?
Timing and Volatility
The cryptocurrency market has been on an upswing for several months, but it is also highly volatile and will have drastic downturns as well. Overall, the tendency is for that market to climb, but timing for the release of an ICO can be everything. The market still seems to have a lot of room to climb, maybe as much as twenty times the current value within the next year or so, but that’s speculation.
Does It Offer a Solution
One of the reasons TenX did so well in their ICO was they offered a solution not often found in cryptocurrency. Because cryptocurrency is a new form of “cash” only a few places on the internet are willing to accept it as a payment. TenX gives a debit/credit card that is easily used in most purchases without additional fees, allowing their “coins” to convert to spending capacity immediately.
Scarcity Still Sells
Creating a campaign based on scarcity can be a powerful approach. If you have something offered at the right time that solves a problem almost no one else has managed to do with similar offerings, then you add the “limited supply” element, and you may well have a run on the supply of goods you have available. Only offer enough to last for a few hours after they are available and it helps. What helped further was another recent ICO, Stratis, that sold and not long after that, the initial speculators who bought at the ICO had points that were worth 129,000% what they initially paid.
Don’t Forget the Whitepaper
The people and organizations that have enough money to buy into the ICOs are sophisticated investors, so just telling them they could make money is not enough. Well in advance of that ICO sale opening, speculators will need to have the research and information in their hands and the way to offer them that information is with a “whitepaper.” That would be similar to due diligence documents in many other investments. The ICO whitepaper explains the technical aspects of the deal in detail and usually does so from a conservative view … not overselling or overpromising. Give investors something with teeth, and skip any salesy chatter.
The “It” Factor
You may wonder what ties such an offering together and makes it work. Well, if all of the above is in place, there’s still one element necessary to make any good business deal work. There has to be trust. The people offering the ICO need a good reputation, but even for people new to the industry, when there is transparency in the deal, it makes it work. Provide great customer service and make sure your management people are well trained in how to help people understand the ideas and concepts associated to the offering.
Cryptocurrency PR Firm
5WPR is working extensively on ICO PR Campaigns.
Ronn Torossian is the Founder and CEO of the New York based public relations firm 5WPR: one of the 20 largest PR Firms in the United States.