One-minute success always derives from months of failures. `this is what Robert Browning taught us.
Why pre-ICO?
A pre-ICO is the very first step where a crypto-startup can raise some investor funds even before the ICO actually starts (basically, that’s why it’s called pre-ICO). It takes place after the official presentation of the While Paper with a detailed description of the startup’s idea, business plan, as well as the development and investment stages.
Apparently, crypto-startups do their best to interest investors with the help of big profit potential and considerable token discounts in order to found further development stages and further ICO.
Upon our request, Masterforex-V Academy collected and analyzed the info about most of the pre-ICOs in April to figure out why they failed miserably by collecting just 0.3% to 34% of the funds required to create a minimum viable product and start an ICO.
Most Popular pre-ICOs That Failed. April 2018
According to our experts, the biggest failures of the month among pre-ICOs are:
1. HIGHER (HGR, сайт highercoin.io), a Californian startup designed to sell and deliver cannabis in California. Basically, each user can install an app and use it to buy the stuff for $10 and get it delivered, and all of that in a single tap. The thing is that everything is legal since storing and using cannabis became legal in California in 2018. The pre-ICO expired on April 22nd. They raised just 1254 dollars or 0.3% of the planned amount of 500K dollars.
2. HorseCoin (HRC, сайт horsecoin.tech), a Romanian startup designed to create a decentralized database about all pureblood horses worldwide, with the ability to track their pedigree, medical records, and so much more. The pre-ICO expired on April 22nd. They raised just 5648 dollars or less than 0.01% of the planned amount of 2 000 000 dollars.
3. A Swiss cloud service provider, with a big pool of clients, working since 2009, starteda pre-ICO with token n'cloud.swiss (NCU, ncloud.swiss) to create a global cloud of consulting projects for big businesses. However, most investors ignored this one, which allowed the startup to collect just 406K dollars of the expected 5 600 000 dollars.
4. Opiria & PDATA (PDATA, сайтopiria.io), a German startup – a unified platform for trading personal data. The project raises a controversial topic related to personal data on the Internet. Amid the recent scandals related to multiple personal data leaks, not only does this project allow Internet users to distribute their personal data, it allows them to make money from doing so. The founders have been very serious about the project. They have been backed by Mercedes-Benz. Theirinvestmentriskshavebeenassessedthoroughly. However, during the pre-ICO they only managed to raise 2,6 out of 30 million dollars.
5. Tawarruq Token (TWQ, сайт ip2pglobal.io), which is a P2P platform connecting lenders and borrowers worldwide. This project raises a significant topic of interest rates (it’s not a secret that they differ from country to country). However, since this project is tailored to Muslim states as well, it has to comply with very strict regulation. At this point, the pre-ICO is over, with only 5,8 out of 47 million dollars raised.
6. Norweigan xsearch (XSE, сайт xsearch.io) offers goal redistribution in the online advertising field. The users can decide which chunks of the personal data to reveal to online advertisers to make ads less annoying and more efficient at the same time. The pre-ICO expired on April 20th. They raised just 1,6M dollars against the planned amount of 12M dollars.
7. TyphonLtd. (Malta) offers a blockchain gaming platform named Chimaera (CHI, сайт chimaera.io). The startup offers the ability to create play-to-earn games and allow gamers to get rid of cheaters and frauds. The pre-ICO expired on April 19th. They raised just 3,8M dollars against the planned amount of 25M dollars.
8. ARGO Reality (ARGO, сайт argoreality.io), a startup from Belarus designed to create an augmented reality gaming environment. At this point, the company is planning to go international. The pre-ICO expired on April 1st. They raised just 113K dollars against the planned amount of 465K dollars.
9. EiraCube (BRETT, сайт eiracube.io), a Spanish startup developing an automated network of online stores. Essentially, this is a flexible solution. If you know exactly what you want, you simply purchase it online. Otherwise, you can visit an offline store and take a closer look at it. The pre-ICO raised just 911K dollars against the planned amount of 3M dollars.
10. TokenGo (GPT, сайт tokengoplatform.com), a UK startup developing the TokenGo platform to connect all kinds of miners and developers related to creating cryptocurrencies, financial transactions, automated accounting and authentication.The pre-ICO raised just almost 3M dollars against the planned amount of 8,8M dollars.
Experts on the Lessons That Should Be Learned
The comparative table reflecting the amount of references in Google and Google.News for each pre-ICO
There can be many reasons why they failed to raise enough money. However, the experts say that the key one boils down to the fact that those startups somehow have failed to promote themselves on the Internet. This cannot be done correctly without being backed by mass media.
Simply put, it’s not enough to come up with an excellent idea, create a website with an offer and wait till investors come to fund your pre-ICO out of the blue. You just have to make yourself be heard if you want your pre-ICO and ICO to end up with success.
For example, take a look atopiria.io(raised $2.6M). Even though they startup failed to get 100% funding, the team has been doing a lot to promote their startup as compared to the rest of the failed pre-ICOs. That’s why it stands out from the crowd anyways.
With that being said, should be surprised with the failure of HorseCoin if there’s been nothing about it in the media?
The bottom line is that success requires constant work. However, a failure or a defeat is not a final verdict. Anything can be changed. Napoleon Hill once said, “When defeat comes, accept it as a signal that your plans are not sound, rebuild those plans, and set sail once more toward your coveted goal.”
