There is plenty of media coverage around Initial Coin Offerings (ICOs) at present. One of the key attributes of focus is the “ICO Advisor” indicated in the the whitepapers. The credibility of the core ICO team and the ICO Advisors is crucial for the ICO success. So what is it that the ICO Advisory do, or should do?
Most ICOs are evaluated based on multiple attributes, including:
- ICO process logistics
- Core business challenge to be addressed
- The technical blockchain platform
- Supporting collaterals such as the Whitepaper and website
- Screening and on-boarding of token investors
- Engaging with the crypto and blockchain investor communities of practice
- Overall marketing plan for the ICO
- Ongoing business model beyond the ICO
- Funds and token management post ICO
These are the top attributes for an ICO advisor and there are some more that are too many to mention.
It is critical that beyond being seen to have the right ICO Advisors in the whitepaper, and that they are actively contributing their skills and experience across all the above attributes. ICO advisors have to be engaged in the ICO process and beyond and should not just be figureheads. Investors need confidence on both the strategy and the execution components, during and post ICO.
The range of experience required includes previous exposure to successful ICOs, blockchain, finance, team management, content and general marketing, business planning, budgeting, investor relations, scenario modelling, and specialist application experience.
Therefore, while ICOs are being heralded as the new and easier path to capital funding for start-ups, especially when compared to IPOs, the process is nonetheless difficult without the right people on board as ICO advisors. Given the need for the ICO Advisory to work actively and closely with the core ICO team, they should ideally come from existing relationships and networks.