Without a doubt, ICOs are a major thing in 2018. And compared to 2017, the ICO stage is now way more competitive, as the hype has now diminished. This is actually a good thing, as only the projects that are strong and trustworthy manage to receive funding. There are, of course, multiple factors that make an ICO successful. The team is one of them. Team members with relevant experience and that have launched and conducted several successful businesses are appreciated. They usually have a verifiable background and their LinkedIn profiles are shown on the ICO website. After the team section, you usually can see the advisors section.
What are ICO advisors?
ICO advisors are mainly “temporary” team members. They are professionals that have a relevant expertise for the project and usually help in the early stages of the ICO. I said temporary because officially they are not project employees, but consultants that have different areas of expertise. The advisors actively contribute and are engaged in the ICO process, according to their skills. Their input is crucial in the early stages of the ICO, as often the core team does not have blockchain background or vast knowledge. This is where advisors come into stage.
What do ICO advisors do?
As stated earlier, ICO advisors are consultants that help ICOs pass through the early stages, from complying regulations to reviewing the product, adapting the strategy and pitching the project. Nevertheless, real advisors should be extremely involved and work closely with the ICO team. There is a lot of work involved, so when talking about real advisors (not just pictures on a website), you rarely see an advisor being involved with more than two projects simultaneously. If you see an advisor being present on 5+ ICO websites at the same time, well, that’s not a real advisor.
ICO advisors can help projects in every needed aspect, depending on their expertise. The main aspects that can be covered by them are (but are not limited to):
- reviewing the ICO website, documents and help in whitepaper creation;
- legal advice;
- marketing and PR (marketing plan creation);
- represent the ICO at various blockchain events, interviews;
- engage with blockchain and crypto investors;
- overall governance.
Usually, advisors bring knowledge input and feedback to projects. Their main purpose is to improve the project in order to make it powerful and attractive. ICO owners should note that advisors are not hedge funds and usually cannot attract huge investments directly. People that ICOs hire in order to attract investments directly are called “bookbuilders” and there are a few such people and companies in the world that do this very well. You have to be an advisor to know this 😉