“As someone who has helped launch more than 20 ICOs, I have gained enough experience to say that there are some traits which are necessary for success. “- Giacomo Arcaro
Starting a new business is always challenging, whether you’re riding one of the hottest tech trends in Silicon Valley or very young and trying to innovate in a country as hard to deal with as Italy, which, in fact, is the case of one of the team behind one of the most successful projects that I myself have helped launch with an ICO in the cryptocurrency sector: BitSong.
Nowadays, when thinking about the cryptocurrency industry, stories that come to mind include the Telegram Initial Coin Offering (ICO) collecting over a billion dollars, the ICOs narrowing the funding gap with IPOs and those ridiculous “scam” projects that have fooled so many. All these stories are proof that the notion that you just have to say “blockchain” and money and success will follow is clearly a misconception. Of course, ICOs run into problems, and as someone who has helped launch more than 20 ICOs, I have gained enough experience to say that there are some traits which are necessary for success. BitSong perfectly embodies all of them, thus experiencing a sky-rocketing growth performance still today, having raised to this day about 65% of their hard cap of 7,000 ETH and getting ready to end the public sale stage in just a couple of days.
First, let me briefly describe what BitSong is all about.
BitSong is a music platform wanting to bring music streaming on the newest blockchain technology, eliminating all sorts of intermediation – financial, as well – between the artists and the users. In fact, the artists will be able to produce songs in which an advertiser can attach advertisements, and the users will be able to access the contents from any device. For each advertisement listened, the artist and the listener will get up to 90% of the profits invested by the advertiser. In addition to that, the user will be paid in Bitcoin for what is called “User Attention”, i.e., the time spent by the user on the BitSong platform. Remuneration of “User Attention” is central, as a behavioral incentive for the user, thus allowing the producer to receive earnings in real time and the advertiser to optimize ROMI performance after analyzing reports of the campaign.
Now, I would like to explain, using BitSong as an example, those traits that I was talking about above, which really make the difference and are the ingredients for a well-executed ICO.
- Core team members who hustle
If cashing-in on the hype surrounding your ICO is all you care about, no amount of marketing is going to help your business in the long run, even if you have experts like Giovanni Casagrande and I in your advisory board. What really disturbs me is seeing founders who could potentially launch great companies, but don’t realize how much effort goes into actually starting an ICO.
Team members must hustle and the whole BitSong team knew that well, from the beginning! In particular, since they are the founders and somewhat the public face of the company, Angelo Recca and Rosario Ticli have been taking hustling very seriously and become involved with a lot of social interaction, networking and travel, all along.
- Engaging with the blockchain community
In blockchain, your users aren’t just your customers or your content creators — they’re the bedrock of your entire platform. BitSong did not just build up this user community, but, in order to do that, the team and its advisors very seriously respected and engaged with the existing blockchain community. We all are conscious of the fact that mainstream blockchain adoption will be a trend in the next years, but it is going to show up first in networks already embraced by blockchain natives (e.g., Bitcoin), and that is exactly why I helped BitSong develop one of those networks.
Even in the initial fund-raising stage, during the pre-sale, BitSong did not just deal with the small group of token-buyers or investors that were actively buying the tokens, but always tried to establish and deepen the relationship with the broader blockchain community. Take a look at the BitSong social media accounts, and see for yourself that you cannot help getting into the mood of this unique project!
- Taking tokenomics seriously
Tokenomics –the distribution of a token within the ecosystem of an ICO project — is crucial. An improperly designed tokenomics plan could bring to centralized power concentrations evolving in your platform, or to the anger and disillusionment of a group of early token purchasers who saw their token value get diluted due to a poorly thought-through bounty program or airdrop.
I will not pretend to believe that there is a solid one-size-fits-all strategy in token model architecture, and that strategy is the one that BitSong adopted, but I must say that their success is still to this day sustainable and did not die with the ICO hype, which has recently strictly dropped, thanks to a strong token economy, which was able to support the BitSong project even to the eyes of the most skeptical investors.
- Putting the necessary effort into the white paper
I cannot help to mention that your white paper needs to look professional, since it is one of the most important contact points with investors and token purchasers. They are not going to trust you with their money, if you are not able to give them a good reason to do so.
It has been proved that there is a loose correlation between the simplicity of white-paper language and the level of dollars raised. BitSong is proof of this correlation. In fact, the team chose the best experts to come up with a very essential but captivating white paper, using clear writing and no filler, thus making the innovative idea shine through every and each one of its pages.
- Taking thought leadership seriously
The collective cypher-punk ethos that brought to the birth of blockchain itself remains alive, and that is why in this young and continuously evolving world, new ideas and ambitious thinking are practically prerequisites for getting into the business. The BitSong project, though, did not just embrace originality for originality’s sake, but has demonstrated to the community that it is the result of a process of hard thought about the direction of the overall industry and, strategically speaking, about what it is that the project itself offers to the market that can be valued as genuinely new. Of course, all of this without ever forgetting to keep a clear and down-to-Earth point of view, both on the internal and on the external coherence of the business.
Of course, BitSong is just an example – let me say, the best success case that I have witnessed so far – but I really recommend you all to take a look at how fast this group of young Italians are changing the music streaming industry, and to carefully analyze their project, especially if you are about to launch your own ICO. As an active advisor, I can state that, no matter the adverse selection mechanism that has emerged in the ICO market, founders who start the process with a good project, staff, advisors and realistic expectations can still launch a prosperous ICO!
For More Information: Visit https://bitsong.io/en