How to carry out market research for initial currency offers (ICO)
In the growing world of cryptocurrencies, the initial currency offers (ICO) have become a popular way for new projects to raise funds from investors. However, before investing in a ico, it is essential to carry out thorough market research to understand the potential and risks of the project. In this article, we will guide you on how to carry out market research for icons.
What is market research?
Market research involves collecting and analyzing data on a particular product or service, industry or market. It helps investors make the knowledge of the case, providing information about the potential of a new project or company. In the ICO context, market research will help you understand the project:
- Business model : How do they generate income and what are its key competitors?
- Target audience : Who is their main investors base and what are their needs and preferences?
- Market request : Is there an authentic request for the project token or service?
- Competitive landscape : What other projects offer similar services or products and how to compare to the proposed project?
market research types
There are several types of market research that you can perform for icons:
- Technical analysis : This involves studying the technical aspects of the technological stack of a project, such as its underlying blockchain protocol, implementing smart contracts and development team.
- Financial analysis
: You should examine the financial statements of the project, including income projections, expenses and profit margins.
- Monitoring of social networks : Pay attention to social media platforms to evaluate the public interest for the project, to identify potential problems or controversies and to monitor the feeling towards the project.
- Industry reports : research industry tendencies, market size and growth prospects to understand the wider landscape of cryptocurrencies and ICOs.
where to perform market research
You can carry out market research using various sources:
- Registers
: Coindesk and Cryptoslate are two renowned online platforms that provide detailed information about new projects, including their business models, team members and financial statements.
- Crowdsourcing platforms : Web sites such as Medium, Reddit (R/Ethereum) and Stack Overflow can be useful for collecting information from developers, investors and experienced users.
- Social Media : Analyze tweets, Facebook posts and Twitter threads to get a deeper understanding of the public and the target concerns of the project.
- Industry reports : Analyze market research and reports from companies such as Deloitte, Ernst & Young and PWC.
How to perform market research
After identifying potential sources of information, follow these steps:
- DON’T RESEARCH ONLINE : Use search motors, online databases and social platforms to collect data.
- Talk to experts : Contact developers, investors and experienced industry professionals to get information and projects.
- Analyze the information available to the public : Review the financial statements, business plans and other relevant documents to understand the potential and risks of the project.
- Use online communities : Participate in online forums such as Reddit R/Ethereum and Stack Overflow to collect feedback from users and developers.
What to look for when performing market research
When performing market research for ICOs, follow the following red flags:
- Unrealistic projections : Be cautious projects with unsustainable incomes or unrealistic growth perspectives.
- Lack of transparency : Be cautious for projects that do not provide clear financial statements, business plans and technical information.
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