There is a lot happening in the cryptocurrency space at the moment. In this context everyone is trying to learn how to do a succesful campaign, what to avoid, what to do, and how to do it as well as possible. In this context it is interesting to read more about one recent pre-ICO campaign, as they look to analyse what worked and what did not. A version of this post first appeared here.
Business Showcase : Hypercube Ventures
We passed another check-point for the Ventureon project. It’s time to analyze the work done and draw some conclusions, in order to move on. Firstly, we congratulate those who made the right decision and invested in Ventureon. Today, the token value has increased by 30%, which means that your asset has grown three times in just a few weeks!
We were not completely happy about the full about results of presale, but they also did not bring major disappointments either. We did not reach the goals set for the presale. Our resources for creating hype and involving a large number of participants was not enough. Even in the ICO planning process, we consciously used a separate, independent division with its own balance. We felt it would be a mistake to use the available investors money to attract other money. This is the principle of a financial pyramid building, which we do not want to use.
The required marketing costs of the project were much greater than expected. The ICO team was in a difficult situation, without a “financial pillow”. This is an unenviable situation, but the guys fought like lions with a limited number of people, seeking resources on their own. An understanding that crypto funds investors do not want to invest money without having the opportunity to receive a majority package in projects became a cold shower for some of our young colleagues. They did not want to make small bets., and yet, even without financial whales, with a deficit of resources, more than 40% of the expected funds were raised. This was a victory for the team!
During the presale, the main fund structure, without distraction, was carrying out its work — preparing the first two projects for launch. By the way, the start of these projects is already very close. Get ready for more announcements — it will be another opportunity to quickly increase your capital.
The challenges we faced
The selection of contractors was a valuable experience. The irresponsibility and incompetence of some of them were tough to deal with. Prices for services in the niche of cryptology are multiply inflated, but nobody can guarantee results. This is particularly true for partners from Russian-speaking regions. However, in other countries the situation is better, but it is not worth relaxing.
Our first conclusion: do not trust anyone. Demand guarantees. Pay the contractors after the work is done, and results are available. Positive history and reviews do not guarantee anything. Market conditions are changing too fast and the technology is really young now. The anonymity of the blockchain is a double-edged sword. It also gives uncontrollability.
It should be noted that Paul Francis, Simon Cocking, Desmond Marshall, Steven Krohn, Foxico and Irish Tech News showed themselves on the best side. We recommend them.
The second conclusion, which we made:
The ICO bubble is inflated due to more and more new projects, hungry for quick money. There is a Gold rush, both Klondike and Eldorado in one bottle. Much hype, with fewer good projects, and few experienced investors.
“History was spurred, history rushed to jump, ringing with golden horseshoes on the skulls of fools …”— A. Tolstoy.
We faced a denial by most of the crypto-investors of the basic principles of venture capital investment. But at the same time, the paradox — they use these principles, coming to results by trial and error. By confusing speculating on exchanges with investment, they try to diversify their portfolios without having any expertise in this. Often they are guided by a herd instinct, motivating themselves by the fact that “everyone can not be fools, and if the project has raised……— few millions, then they can trust it.”
There is something in common between the ICO market and politics. Populist projects tell investors what they want to hear — all secrets are open, and promises anticipate any expectations. It should be interpreted as follows: we agree with everything, only give us money …
Our advice is — to be attentive with projects that are completely open, exposed and “disarmed before the Blockchain Party.” There is no business without secrets and projects without flaws. When the wave breaks off, and the inflated bubble bursts (and all laws of the economy say it will surely burst), many cryptocurrencies will lose much in value, and “empty projects” will disappear, leaving nothing behind them but the memory of trusting investors.
Meanwhile, it is worth recalling that even in the hardest times, when banks broke in dozens, and hundreds of companies were ruined, venture funds remained afloat and even with good profits came out of financial storms.
Analyzing the results of the presale and comparing them with the costs, we decided to remove all unnecessary elements and continue with the ICO. If the hype will be created, then only by the forces of real followers and lawyers of the brand. No populism. Moreover, our first project — Hypercube Billing starts soon. So the VNN token value will be even higher due to real market capitalization.
We expect that in the long run, crypto market will find a way to determine the real cost of projects. Blockchain is about a relationship without trust. But investing in a startup is about investor expectations and trust in the team. Therefore, we are sure that such projects as Ventureon will become the dominant tool for attracting investments in startups and a safe tool for venture capital investment using blockchain.
According to the experience of gold rush, those who served it and system gold mining companies (shareholders of these companies) earned much more than ordinary miners. This is not just a hint, but an insider information for a careful investor. 🙂
I just published “What is a smart contract and how does it work?”https://t.co/3xAsdkaFQW
— VentureOnICO (@VentureOnICO) October 19, 2017
If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at or on Twitter: @SimonCocking