- ICO Ratings Research Report from Q2 2018
delivers some concerning statistics.
While $8.3 billion was
raised by 827 projects
in the quarter,
half of the projects couldn't
raise more than $100 K
and just seven percent
are listed on exchanges.
Most shockingly, 55% of all ICOs failed
to achieve their crowdfunding target.
ICOs which were most successful
were run by companies
with an MVP ready to go.
There are many blockchain
loyalty companies
operating around the world
after running successful ICOs,
but not a single one of
them is operating at scale.
It appears clear that
investors are no longer going
to invest blindly in the idea,
but want to see a more advanced project.
Based on that, here are our recommendations
on how a blockchain loyalty company
should position itself
to increase its chances
of a successful ICO.
Firstly, team.
Have a solid team with
strong loyalty credentials.
Far too many blockchain loyalty companies
have been founded by teams
who don't have a loyalty background
and don't understand loyalty.
Secondly, product.
Have a working prototype
or MVP program available
to demonstrate the member
and retailer experience to investors.
If the program is already
running, even better.
And finally, market.
For a blockchain loyalty
program to succeed,
it needs engaged merchants
and engaged members.
And the company needs to be able
to communicate where these will come from.
Starting a loyalty program from scratch
is incredibly hard.
We predict the first company to succeed
in the blockchain loyalty space
will be an established company
or conglomerate who can
layer their program
over the top of an existing customer base,
such as Rakuten in Japan.
Read more about the future of ICOs
at blockchainloyalty.io
