“The rush for ICO is over, and the projects are still left” - market analysts concluded. At the beginning of 2018 the ICO projects mobilized more than $ 3 billion dollars monthly, and now, only six months later, the statistics has shown a rapid decrease of funds collection – $ 326 million per month, and that is 10 times less comparing with the beginning of the year.

Kate Bublik

Co-founder & CMO & ICO believer, Crypto-A

Why did it happen and what to expect next? Let us try to figure it out!

A low interest towards ICO is quite reasonable – this is due to what is happening in the cryptocurrency market. Thus, the Bitcoin rate has fallen more than 65 percent since December 2017, which is a real disaster for most coin holders. People no longer trust digital money for fear of losing their savings and the time spent in exchange trading …

In addition, massive reports of fraud and dishonesty on the part of ICO creators, as well as,unstopping bans on advertising of ICO projects aggravate the situation. Indeed, old ICO market finally died this summer. But the majority still prefer to live by the old rules and look for those responsible for the lack of results.

The main reason for change is the transformation of the ICO market. It began at the end of 2017 and by the summer of 2018 changed it beyond recognition. Professional investors realized that the blockchain was the “new Internet”, so they started to dominate in ICO’s financing structure. As a result, the rules of the game have been still changing. Professional investors set venture capital standards adapted to the specifics of ICO.

The rules for raising investments have become clearer and more transparent with the beginning of last year. But they are clear only to those who know how to work with VCs.

A new market infrastructure is being formed today. The number of professional investors in ICOs is growing according to some analysts.

Professional investors form a new infrastructure from the consulting agencies with the experience in both ICO and VC markets. They provide the necessary services to the investors and the projects by reducing the risks for VCs and  by increasing of the funds collected for ICO projects.

It is also important to keep in mind that a few years ago, when the market was about to form, first blockchain enthusiasts, who believed in the development of the digital economy and the blockchain, began to build up the new expertise for themselves (marketing, PR, management, and so on) and used them in ICOs. At the same time,many hunters came to the industry for “mad” money with no other skills but self-presentation. As a result, the infrastructure that was poorly suited to the demands of institutional investors was formed. In such conditions a professional market change was inevitable.

The requirements for the projects have changed! Today, ICOs are not about ideas anymore; successful ICOs are backed up by the advanced product & technology, experienced team and savvy and well-planned marketing.

Speaking of roadshow, fo now this tool has again become the key to raising money. Now it is a complex process, the success of which directly depends on the ability to build relationships with funds, on the team background, as well as on the ability to highten investors interest to the project and the effectiveness of closing deals.
It is also worthy of saying a word about marketing. ICO marketing is still crucial for the project, but the credibility of a large number of channels has reduced today. Many crypto websites are expensive and have nothing to offer, and the HYPE slogans no longer work. The success of marketing currently lies in the clear strategic communications with the target audience, community creation and using of only ROI and performance based marketing tools & channels.

The conclusion is clear– if the team follows the path of 2017 during project implementation, the effect will be very low, and the efforts and resources spent will be colossal. But this does not mean that there is no market. The market has simply become different – with new rules, tools and processes. The change is calling, we all need to evolve.