Blockchain this, blockchain that. Let’s face it – the market does not need another mainnet blockchain launch or another ICO (initial coin offering) after being inundated for months with blockchain and cryptocurrency projects.
Blockchain is said to have been started in 2008 when Satoshi Nakamoto released that whitepaper on Bitcoin, but it was only recognised as a technology around 2014, according to Forbes’ history recount. Since then, the public’s interest on blockchain seems to be unflagging.
That is, until earlier this year, when the hype and excitement around blockchain and ICOs (or TGE’s) have considerably waned mainly due to government regulations. In China, for example, trading is banned completely. The rise of scams and online thefts are likewise driving investors, users, and lawmakers to become increasingly wary of cryptocurrencies.
Building Credibility
Brand awareness and recognition are particularly important for blockchain and cryptocurrency startups. As the new players seeking to grow and establish themselves in the market, startups cannot draw on a long tradition of a positive legacy for their narrative.
Unfortunately, building brand awareness is often relegated to the backend of many startups as they tend to focus on building new technology. However, smart media engagement can be the deciding factor for investors and users when determining which token to invest in or which company to support. How do you build credibility?
- Find the right balance between paid and earned media, bearing in mind that earned media brings the hygiene factor to the game. Meaning, a company is viewed as more authentic and trustworthy when third-party trusted media write positively about them.
- Engage with media pre, during, and post-ICO – if you are running a token sale. Build a narrative around the problems that your technology is aiming to solve, instead of the ICO you are driving.
What is your differentiator?
Being able to separate the product from its competition is another cardinal aspect a startup needs to articulate. To succeed in a particular country, the startup needs to understand the local and regional angles. Media will primarily look for the company or product’s relevance to them before deciding to write about it. If you’re running an ICO, ensure that you have a clear rationale behind your cryptocurrency or utility token and articulate your difference from an advantage over other token providers.
Timing and planning are key to success
Having a good product or technology means nothing if you can’t sell it to the public. Start by preparing a communications plan aligned with your business plan. Invest in public relations and come up with a good strategy to educate the audience on your product while building credibility for your company. Ultimately, startups need to establish trust as a foundation, in order to build a successful business.
Reference:
Wall Street Journal Analysis of Initial Coin, May 17 2017
