One of our clients Storm Token wrote a great blog about the new ICO craze. Read on…
By Rui Maximo, StormX CTO
Given the recent news related to China and Korea’s stance around crowdsales (“ICOs”), we thought it would be appropriate to reach out to the Storm Community to provide our thoughts and approach. That said, given the ongoing discussions around crowdsales, it is appropriate to talk generally about token sales.
We suggest you not only evaluate our product and offering with the following criteria, but any and all companies engaging in token sales. The key distinctions we make between valid token sales and those that rise to the level of skepticism are the following:
Best Practices for Evaluating Token Sales
1. Current Product Utility: Most important to us is that tokens should have an ongoing utility. Tokens should be connected to a real product with immediate utility with clear and logical representation. Utility is best when integrated in a wider ecosystem. Product should have a history with operating in the relevant field prior to token sales, as well as demonstrable technical competence. For us, that has been Storm Play, and we’ve been operating and growing for three years.
2. Experience & Expertise: A team with relevant experience and a proven history of success and experience in the vertical is important as it demonstrates the team’s experience and ability to navigate a market. Look for a team with a track record of execution — the ability to get something done and finish it to completion. Credibility and integration of the team within the blockchain community is important. Storm Market has this with over three years of experience in Mobile AdTech and micro-transactions involving Ethereum and Bitcoin since 2014.
3. Credible Team: A company with a strong reputation also should have external community-based validation with credible advisors and supporters, along with partnerships, who also have done their own diligent research with the company doing a token sale. For StormX, Inc. our extended team includes: Wachsman PR, CMH, GHStrategic, Deloitte Tax LLP, Perkins Coie, and others. StormX, Inc. has also had products on our Storm Play platform like Hulu, Dollar Shave Club, Game of War, and over 800 others.
In short, with respect to Korea and China, specifically, and token sales, generally, those that are generated by legitimate, good-for-the-ecosystem players set the bar HIGH as a standard on what is expected, and thus shine an appropriately negative light on those who do not share these characteristics.
In so doing, good standards related to not only technology, but to the design principles that set up their communities for success become the new standards.
Finally, we believe profoundly that the very best companies — whether utilizing tokens or not — are mission-driven, and not purely profit motivated. This mission-driven approach is at the core of our being as a company, and we feel is the ultimate differentiator.
This was originally published by STORM Token.