As the blockchain community works hard to gain more mainstream lure, there’s still one main hurdle that they’ve yet to conquer: its Wild West track record.
This reckless reputation has terrified off more traditional investors, and for good reason. The last rush of ICOs was riddled with empty promises and misinformation with nearly 80% of the ICOs in 2017 were downright scams. What’s more, too many of the legit projects weren’t practical in that they weren’t designed to solve complications, but instead force blockchain innovation into an app that only a handful of users would find helpful.
Blockchain Draws In the Wrong People
Preventing the obvious cons, there has been too much focus on up-front money. Let’s think about this for a moment. Does a 28-year-old Chief Executive Officer of a blockchain venture, with no experience in investing or running a business, really need $20 million in financial investments to greenlight a project? Quite simply, the answer is no. Sadly, this scenario happens time and again advertising, and possibly even encouraging the Wild West subculture which in turn believes ICOs lead to “Lambos” and five-star hotels.
Typically, this type of way of thinking is being heavily associated with ICOs and crypto investing which can drive away conventional investors; the folks who actually have the capital to take blockchain technology to the next level.
Focusing on all the wrong things
The blockchain society has been struggling to find direction for some time now. Instead of focusing on creating innovative solutions which solve real-world issues, many start-ups have been trying to entice whales interested in sinking big investments as part of their get-rich-quick strategy.
This leads to a number of complications, including:
- No real support. Investors are looking to get in on the ground floor and sell when there’s an opportunity to make money.
- Increased speculation on the strength of the project and its tokens. It’s hard to tell that investors actually believe in the venture versus which in turn ones want to make a quick million.
- No real long-term strategy. Instead of planning a project roadmap, many startups focus on launching their ICOs as quickly as possible to maximize money coming in.
We Need a Better Solution
At the moment, many blockchain ventures are struggling to get mainstream support because of the community’s lawless image. We must build credibility to reverse this negative image within the blockchain and crypto societies. Here’s how:
- Rather than focus on whales looking to buy low and sell high, startups need to draw in investors who are interested in the actual modern technology.
- There needs to be a greater push to identify and remove scammers from the blockchain society.
- Projects need to focus on fixing real-world troubles that average people experience in their day-to-day lives.
One of the biggest barriers blockchain startups face is practicality. Too many ventures are providing services which an average person has no use for. Conventional blockchain adoption needs more ventures like SuchApp, that uses the power of blockchain modern technology to enhance popular applications like messenger services and e-commerce.
Want to see how we can take blockchain from the Wild West to the modern era? Stick around for our next blog post! In the meantime, have a look at the ICOSuccess website to learn more about creating an ICO campaign that’s perfect for you and your venture.
Learn more about how you can use distributed ICOs to grow your platform by visiting the ICO Success website today.
