By Laura K. Inamedinova
December 7th, 2018

Awareness of ICO projects: could excellent ones fight the shadow of scams?

Awareness of ICO projects: could excellent ones fight the shadow of scams?

By Laura K. Inamedinova
December 7th, 2018

Blockchain and ICOs are still popular and people cannot stop talking about them, but is this fame only positive? Definitely not – a certain amount of scepticism is quite relevant there. Also, even if negative reactions are not always fully adequate, one must admit that the ground for them is absolutely normal. For example, scam projects have played an important role regarding the lack of confidence in decentralized systems and businesses working with them closely. Obviously, it can usually become a serious obstacle for fair and well-developed projects, limiting the opportunities of improvement or expansion.

As a result, mutual efforts towards advancing reputation are crucial in order to help fighting the shadow in the industry. On one hand, it is the responsibility of potential investors to conduct the research and fact-checking before making an important decision. However, the founders and team members of ICOs may be also able to advance the reputation of this form of investment. The main question is, to what extent and how it could be effective.

Communications strategy

The biggest changes usually start from the shift of habits people do with themselves. Therefore, it would not be wrong to believe that an appropriate strategy of communications is capable to bring out positive results.

From the first sight, this task seems pretty easy. However, a number of mistakes done by many ICO projects may signalize that talking in general, effective communications require a lot of further consideration and time. Although this work is relatively hard, once implemented, it can bring out not only fantastic results regarding the performance of the project, but also the increasing confidence in ICOs.

Hence, the ICO project encouraging awareness should set up the list of values which would be reflected in marketing strategies. Social responsibility mixed with transparency appeal to many potential investors due to the message of kindness and understanding of honesty. At the same time, the team of ICO project establish themselves as reliable people thus abolishing the shadow of scam.

This is how potential crypto scams may look like (source: KryptoMonk)

Workshops and networking events

It is not a secret that a number of crypto investors are complete beginners in this industry. Naturally, this group lacks necessary knowledge which could help in conducting extended research or dealing with different ICO projects. These features are a perfect catch for scammers who share unrealistic yet amazingly sounding promises without further explanation. Enchanted with these ideas, new investors do not behave wisely and responsible. This leads to a vicious cycle where bad ICOs take advantage of people without any experience.

Teams of successful ICOs could contribute to the increase of awareness when it comes to potential scams. Widely advertised sessions where keen people could find out more about the basics of crypto investments and have a direct contact with representatives of potentially interesting projects would be a good idea to achieve it. It could go even further, offering ‘course packs’ with similar events for more advanced investors, thus gaining and maintaining both relationship and confidence of people who chose the company.

The range of events could be various. Workshops, networking sessions and panel discussions are universal ones, but it could be supported by entertaining pitches with following evaluations.

As a result, the increase of investors’ awareness encouraged by ICOs should advance the reputation of the latter ones.

Closer collaboration with institutions

The relationship of crypto projects and governing institutions is one never-ending story. Experienced many ups and downs which are usually depending on decisions of bureaucrats and atmosphere within crypto community; resulting in the change in Bitcoin price (what may also contribute to the confidence level amongst investors), it could be defined as… a complicated one.

Nevertheless, exactly the strengthening of bonds between these two would fight the shadow of scams. The community of ICOs could be happy and slightly calmer to see more liberal regulations worldwide which are often the consequence of already-happening collaboration of crypto people and institutional representatives. However, this dialogue has a prospect to go even further.

What is still undone, but can be done? Both parties should reach a consensus regarding the supervision of projects in early stages which may be useful regarding avoiding scams. Also, it is important to increase the collaboration of blockchain-based ideas in public sector what could also give another credit for ICOs. In other words, making old enemies new friends (or rather partners) would show professional attitude at least. The maximum results could be even better for all ICO field, surely.

Caricature about governmental crypto regulations in South Korea (source: BitStarz)

All in all, are these techniques effective enough to fight scams? When it comes to a complete defect – probably no. As everywhere in the world, it is probably impossible to lock all doors for potentially bad events. On the other hand, ICOs could contribute to the larger confidence of investors, what would lead to instant decrease of scams. In addition, good terms with institutions would also help for the whole crypto community to grow and develop, thus reducing the shadow again.