The IDO fundraising model has sprung up with the recent growth of the cryptocurrency space, and IDO marketing strategies have popped up alongside this model. New varieties of Initial Offerings began popping up in the market in 2016. These included the likes of STOs, ILOs, IEOs, and ICOs, all indicating growth in the ubiquity of DeFi ecosystems. More recently, we’ve witnessed the birth of Initial Dex Offering (IDO), the present-day type of token issuance.
Today, we’ll look at this financial model – IDO, and how to use it to unveil your token. Let’s start:
Issues crippling the cryptocurrency market
There’s no perfection when it comes to financial models, and this includes the crypto model. The crypto market faces both structural and functional drawbacks that are slowing its progress. Let’s talk about a few:
1) Insufficient information
Back when Bitcoin was still new, there was insufficient information about it. As such, it had a lower value. Even today, many tokens and coins come out without enough information. As a result, investors have little to work with in determining whether it’s a worthwhile investment or not.
Beyond that, before the founding of exchanges, many tokens and coins had to leverage forums for crypto marketing. From the looks of it, these are not reliable sources of information. As a consequence, rug pulls and crypto scams became the order of the day in the crypto space. It’s therefore not surprising that investors became fearful of crypto investment.
More recently, white papers have become a reliable source of information about tokens or coins that investors could rely on. Crypto websites have also come in handy in helping spread the news about crypto and the new products in the market.
2) Lack of hype
Nowadays, the hype around new crypto projects and existing ones are a result of intense marketing. You’ll witness both creators and some investors investing in building product awareness. While this is a norm now, it was not always the case.
Back then, the unveiling of cryptocurrencies didn’t involve significant marketing to grow a supportive community. As such, there was no hype around the crypto market. As a result, only a few people were aware of the crypto market. This made it hard for the public to trade in it or even consider it as an investment.
3) Challenges with trading and IPOs
In trading, there is no significant difference between stocks and crypto. However, there is a difference when it comes to the rules that regulate these spaces. For instance, stocks have a legal regulation that controls the market space – most of the time, this is the SEC or some similar authority. On the other hand, the crypto space comes with no regulations.
For example, there are instances where crypto trade is done before being made available to the public. This trade is referred to as a pre-IPO. The lack of transparency during a pre-IPO leads to the coin or token being overpriced or underpriced.
As a result, the public remains unaware of the essential process behind the IDO fundraising model. This contributes to the skepticism that people have in investing or trading in crypto.
4) Other underlying drawbacks
Do you remember the issue of insufficient information? Well, it turns out that even with enough information about cryptocurrencies, you’ll still face difficulties during trading.
Earlier, traders in the crypto market were acquired through private invitations. It wasn’t until 2012, through the Coinbase rollout, that Bitcoin was first traded publicly.
It’s also worth noting that crypto is based on a type of code that leverages various algorithms to run. As such, it’s susceptible to bugs. Back in 2018, it was attacked by INVDoS.
Marketing efforts significantly contribute to the failure or success of an Initial Coin Offering. When you fail to expand the user base or token recognition, it’s a recipe for a negative outcome.
Given that the blockchain ecosystem is new, and lacks standards and regulations, selling tokens can be tough for an average person. Moreover, it’s hard to publicly access sales events since some of them are only available to private invitees.
The beginning of IDO campaigns
All the above issues in the crypto space can raise concerns over whether the situation is different today. It’s evident that there is an improvement. For starters, blockchain has advanced. Their coding structure and security are more impenetrable than before. Furthermore, there’s also Decentralized Finance also known as DeFi.
DeFi is a major development in the blockchain industry. Thanks to this development, multiple entities can retain the history of their transactions. DeFi has been a major improvement for various financial products.
Liquidity pools, staking, Fixed Deposits, and flexible savings are among the developments that came with DeFi. The IDO model was also an outcome of DeFi.
What is an Initial DEX Offering (IDO)?
Many crypto projects unveil their tokens or coins through DEX (decentralized exchange). Using the same platform, they’re able to build a fund for their project. Thanks to this, startups can access a fair share of resources that they can use to build their crypto projects. Through the IDO, they’re able to reach out to individual investors who can provide the funds that they need.
What’s more, they’re free from the drawbacks of having to deal with intermediaries. Thanks to the IDO model, they can work directly with the investors. Therefore, they won’t incur fees for the services. It’s worth noting that IDO permits liquidity, direct trading, and is relatively inexpensive on the initial listing. This means everyone has something to celebrate.
How to perform an IDO launch
The planning and campaign strategies when launching an Initial DEX offering are no different from that of an IEO or ICO. Besides leveraging the DeFi ecosystem, all other steps to a successful campaign launch are more or less similar. Here are the typical steps that a crypto developer would go through to launch an IDO:
- It all starts with the recognition of the best DEX aggregator. It should have competitive rates even after cross-checking with other DEXs on the Ethereum blockchain. With the right choice of DEX, your project will have a great start that will lead it to success. Remember, this is a dynamic space that’s evolving pretty fast. Using a DEX aggregator that can keep up with the changes in the industry is the best solution. It will help you achieve your target via several methods, including news mentions, public statements, and Ask-Me-Anything (AMA) sessions. On that note, you should have a contingency set up for whichever DEX you decide to partner with. That’s because you’ll work with it in every step during the preparation phase.
- Once you accomplish the above phase, it’s time to sample a few IDO platforms. In this case, you’re looking for a hosting platform or token launchpads. This launchpad is essential for the credibility phase of your project. As you review them, consider the marketing support and fee structure they’re offering. For your project to be accepted for the launchpad process, there are key steps it must fulfill. First, it should demonstrate public awareness through the press and also build powerful publicity. It’s also important for your project Tokenomics model to be robust. NOTE: With the right choice of launchpad, your project is bound to have long-term success.
- Would you like to have some component of governance in your crypto project? Well, you can achieve this by contributing to the governance fund using a fraction of the token supply. It’s this fund that supports user participation.
- At this stage, you’ve laid down a solid foundation for a triumphant launch. Now your next move is scouting for creative marketing techniques. This could include bounty schemes, lock-token prizes, or more.
- Meanwhile, ensure you have stand-up documentation and smart contracts that will pass inspection. That’s why it pays to leverage online Interactive Portals, among other emerging platforms. They support whitepaper viewing by target audiences.
- There are tons of users flooding the crypto space constantly. As such, employing an eCommerce marketing approach is what it takes to get new prospects on board. This approach also targets current existing investors within your community and gets them on board. To succeed in the crypto realm, target unique campaigns as well the universal marketing trends.
Signs of a struggling IDO project
1. There’s no investment query
If you have a groundbreaking crypto project and a target market but there’s no investment query, the problem is marketing. When you launch an ineffective IDO campaign, even the best idea will not sell. Furthermore, poor marketing can tarnish your brand reputation causing more investors to exit instead of joining your project. Luckily, a marketing agency can help you out.
Marketing experts will take your idea into account and forge an extensive campaign strategy that will improve it. Moreover, they’ll help you uncover what’s dragging the growth of your project in the market space.
2. Lack of X-factor in your marketing team
An in-house marketing department can help you sustain the growth of your business. However, it always reaches a point where they’re fully saturated and out of new ideas. At that point, you’ll experience the impact on your business since its growth will start slowing down. On the other hand, when you collaborate with a marketing agency like Pressfarm, business growth can be consistent.
3. Ineffective landing page
After encouraging targets to check out your project site, a well-designed landing page can help you convert them. However, if it’s not persuasive enough, you’ll lose prospective investors. That said, you need to design a landing page that persuades the user to take action when they visit.
Potential investors should have the urge to buy your tokens or coins when they get on that page. By collaborating with a PR agency, you can learn more about your target audience. With this information, you can design a compelling landing page that they’ll appreciate.
How can Pressfarm help you to leverage the IDO model for launching your token?
The team at Pressfarm can help you with your IDO promotion. After all, the PR specialists at Pressfarm have experience dealing with various fundraising models both within the crypto industry and in the traditional financial market.
The Pressfarm team can help you create quality content that can attract media attention and earn public trust. With a professional press release, some engaging guest posts, and a branded media kit, you can earn credibility in your niche and excite potential investors.
In addition to creating this content for you, the team at Pressfarm can distribute it widely, thus boosting your online visibility. The PR specialists at Pressfarm leverage their network to pitch this content to the right media outlets, startup directories, and professional networks. In this way, Pressfarm can make it easier for your target audience to find you through organic searches on search engines like Google, Yahoo, and Bing!
Once you sign up, the account executive at Pressfarm also builds custom media lists containing the best media professionals in your niche. You can combine the use of these media lists with Pressfarm’s media database of 1 million+ journalists, bloggers, and influencers. With all these media contacts, you’ll be able to continue doing extended media outreach for your brand long after Pressfarm has wrapped your PR campaign up.
How does working with Pressfarm specifically benefit crypto developers with an upcoming IDO launch?
- Working with the Pressfarm grants you access to professional help on the blockchain. With their expertise and links to leading platforms, you’ll be getting help from insightful leaders with vast experience.
- Pressfarm’s success in this industry lies in employing multiple marketing strategies for a wider reach. Additionally, they’ll combine an extensive marketing plan with your revolutionary idea to ensure a successful project launch.
- Pressfarm has got all the knowledge, experience, network, and winning strategies to help you launch your IDO. Furthermore, they have a positive track record from collaborations and earlier projects.
Start planning for your IDO launch today
Remember, a successful campaign when leveraging a financial model starts with a solid foundation. Once you’ve built this foundation for your IDO, you’ll enjoy long-term prosperity.