How to conduct market research for initial coins offers (ICO)
In the growing world of cryptocurrencies, the initial offers of coins (ICO) have become a popular way for new projects to collect investors. However, before investing in an ICO, it is essential to carry out an exhaustive market investigation to understand the potential and risks of the project. In this article, we will guide it on how to carry out market research for ICO.
What is market research?
Market research implies collecting and analyzing data on a particular product or service, industry or market. It helps investors to make informed decisions by providing information on the potential of a new project or company. In the context of ICO, market research will help you understand the project:
- Business Model : How do you generate income and what are your key competitors?
- target audience : Who is its main investor base and what are your needs and preferences?
- Market demand : Is there a genuine demand for the token or project service?
- Competitive Pango : What other projects offer similar services or products, and how are they compared to their proposed project?
Types of market research
There are several types of market research that you can do for ICO:
- Technical analysis : This implies studying the technical aspects of the technology stack of a project, such as its underlying blockchain protocol, implementation of intelligent contracts and development equipment.
- Financial analysis : You must examine the financial statements of the project, including income projections, expenses and profit margins.
- Social network monitoring : Be attentive to social media platforms to measure public interest in the project, identify possible concerns or controversies and monitor the feeling towards the project.
- Industry reports : Trends of the research industry, market sizes and growth perspectives to understand the broader panorama of cryptocurrencies and ICO.
Where to conduct market research
You can conduct market research using several sources:
- Records
: COINDESK and Cryptoslate are two online platforms of good reputation that provide detailed information about new projects, including their business models, team members and financial statements.
- Crowdsourcing Platforms : Websites such as Medium, Reddit (R/Ethereum) and Stack Overflow can be useful for collecting information from developers, investors and experienced users.
- Social networks : Analyze tweets, Facebook publications and Twitter threads to obtain a deeper understanding of the target audience and project concerns.
- Industry reports : Look for market research studies and companies such as Deloitte, Ernst & Young and PWC.
How to conduct market research
Once you have identified possible sources of information, follow these steps:
- Do online research : Use search engines, online databases and social media platforms to collect data.
- Talk to experts : Communicate with experienced developers, investors and industry professionals to obtain information and opinions about the project.
- Analyze the publicly available information : Check the financial statements, business plans and other relevant documents to understand the potential and project risks.
- Use online communities : Participate in online forums such as R/Ethereum and Reddit Stack Overflow to collect comments from users and developers.
What to look for when conducting market research
When conducting a market investigation for ICO, you are attentive to the following red flags:
- Unrealistic projections : Be careful with projects with unsustainable income models or unrealistic growth perspectives.
- Lack of transparency : Be careful with projects that do not provide clear financial statements, business plans and technical information.
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