The ICO market has changed, large income within a limited time period is no longer possible, investors have become disappointed with projects that had a good idea on paper, but poor implementation de facto. It is quite obvious that George Martin’s Winter for ICO projects came earlier than it was expected.
Until recently crypto-funds invested in the largest pre-sale projects with discounts and sold their tokens already at the ICO stage. However, the current strategy has changed and a lot of big players took a wait-and-see attitude. It became clear that the time of 500% profit within 1 month is over and only long-term investors who are ready to work in the same team with the project for at least several years will remain on the market .
Now the main investors in the ICO market are either the owners of 2-3 Ethereum and are ready and willing to try investing at the ICO stage out, or the miners who start receiving cryptocurrency and would like to increase the profit.
Why does our ICO within the Adpump Blockchain Marketplace lasts for a whole year?
- Usually the majority of the projects collect huge amount of money at the stage of ICO without any legal or financial obligations to their stakeholders, even though no project needs the whole amount immediately, the funds are needed in parts, depending on the business plan. This practice is adopted in venture and direct investment, when the fund gives an obligation to invest money in the project, but not immediately and with certain KPIs. Certainly the ICO market should adopt this practice, it will reduce the number of fraudulent projects, as well as demotivated teams that receive big money overnight. Moreover, such a market transformation will increase the motivation of the team to actually build the declared product. Within the framework of our ICO we issue tokens according to our financial plan in five stages. On the one hand, it allows early tokenholders who believed in the project at the first stage to get superprofits, at the same time it doesn’t prevent the other participants of the ecosystem from purchasing tokens.
- We have an affiliate network operating at CPA model, and therefore, have a large pool of business project that either conduct ICO or have already successfully completed it. The problem of the market is that at the current moment the cost of advertising is extremely high and a huge number of projects spend more than two-thirds of the collected budgets for actually attracting tokenholders. This is a critical vulnerability of the market. We faced projects that collected about 1 million and were ready to spend the same 1 million on marketing just to show the hype around the product.
- The problem of the most ICO projects is that immediately after the completion of the ICO, a huge amount of tokens that are not secured by anything is issued to the market. Moreover, usually teams do not have the end product or even understanding why a token is needed in the ecosystem and how they can ensure its liquidity. That is why it makes sense to issue tokens on the market as the product is being created organically engaging the token in the ecosystem. The majority of tokens, except for speculative coins, lose their value immediately after the ICO.
- The tokenholders get an opportunity to control the actions of the team if it does not fulfill its initial promises stated in the Roadmap. There simply will be no buyers of tokens on the next stage. It is important to distinguish startup tokens from shares of a real already functioning business. Tokens do not provide a right to vote or get a part of the total profit unlike the company’s shares (however, on the market there are also shares that do not give the right to vote).
- Turnover of tokens and their total capitalization will be provided according to the business growth (and consequently, token price growth). Moreover, the partial sale of tokens allows the project to earn more than stated in case of successful realization of the project as only market will influence the cost of a token
That is the reason why we decided to conduct ICO throughout the whole year and demonstrate that we are really building a product, not just talking about it and collecting money. We want to prove that we are not just another scam project, but a real team with a real operating business that is determined to accomplish the project. Throughout this year, we will gradually implement the project, attracting traffic partners and advertisers, as well as producing a limited number of ADP tokens that will circulate inside the ecosystem providing the capitalization of tokens. Therefore, the cost of tokens at each stage will only grow, as well as the amount of those who want to buy our tokens.
The world of ICO is going through drastic changes. Make the ICO market better together with Adpump!