ICOPedia

ICO Rating System Breakdown – Product

Here is our rating system highlighting the key features of a great ICO. These include a white paper, the token, and how the product makes the most of the blockchain technology. Equally important are the roadmap of deployment, token compliance, sale, and the skills and experience of the team behind the idea.

Part II – Product Offering

Most venture-funded firms, as is their nature, rely majorly on the capital resource poured in from the public domain. And, ICOs have revolutionized how corporations get this funding to either propel their ideas or widen their businesses.

The main reason why speculators will decide to put money into your idea has a lot to do with your product offering. In fact, this aspect needs to be the critical point of the white paper. It is easy to raise millions of dollars solely by having an excellent product and explaining the same adequately, comprehensively and convincingly.

The five essential aspects that every ICO team should highlight under product offering include the readiness of the product, its appeal, the portion of the population that will form the user-base, innovation, and the competition.

  • Product Readiness

A ready product refers to an idea that is fully developed and whose utility, users can enjoy. Say, you want to solve the problem of storage and have a disruptive innovation that you have built on blockchain; your product can be described as ready if the storage facilities are already in place. In such a situation, token holders do not have to wait for a launch; instead, they just exchange the platform tokens for the service.

However, the tech industry is providing numerous disruptions, and most products floated around are hardly ready. That notwithstanding, investors are willing to look at products in beta or initial roll-out and prototype stages.

  • Appeal

A project will attract capital resource if the sound of it amazes people. The idea behind the product should have an apparent potential to disrupt an aspect of life. The release and growth to prominence of Bitcoin coincided with the demonstrations initiated by the Occupy Wall Street Movement and people with similar ideology. The civil society in the US thought banks were ripping off their customers.

Bitcoin burst into the scene to solve a myriad of problems that occasioned these demonstrations. For this reason, the digital currency had a wow appeal. The fact that it was decentralized and out of political influence made it even more attractive.

  • User Base

When developing a product and hope to raise money from the public, the idea needs to be attractive to a vast portion of the population. And, while a product with a mass market or general audience is ideal, it is never quite achievable in particular instance. As such, products whose user base may grow with time or those that have relatively broad markets are just as feasible.

  • Competition

A great product has zero or very little competition if any. The idea behind the project should be genuinely disruptive. Right now, most ICOs peddled offer disruptive, competition-less ideas mostly. However, as time goes by, upcoming ideas may need to be innovative to even dream of seeing the light of day.

  • Innovation

Great ideas move mountains, or so the adage goes. An innovative idea for an ICO should provide a novel approach for solving a situation. However, it gets even better if it is original and specialized. Ideally, an outstanding innovation should be proprietary and highly specialized, so it meets the need for which it has been programmed aptly.

To Sum Up – The world is going to see a lot more ICOs come and raise billions of dollars from the public. While this happens, it helps if investors can know where to put their money and why. This series provides all the answers.

Part I – Whitepaper

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