It’s no secret that within the blockchain space initial coin offerings (ICOs) were the main form for raising capital and funding ventures. There were hundreds of projects that attempted to launch ICOs and only few were successful. According to The Bitcoin Market Journal, the most successful ICO to date was from Block.One, which launched the sale for its EOS platform, raking in an impressive $4.1 billion. Unfortunately, others were not as successful. In fact, in Q2 of 2018, 55% of all ICO’s failed, which is 5% more than the number of failed ICO projects recorded in Q1 2018. It didn’t take too long for the market to wise up and realize there was something fishy with these widely popular ICOs. The main problem was the numerous scams. The more ICO scams that were discovered, the less reliable this type of venture funding became. A Token PR agency is aimed to assist companies with their messaging and communicating to the public, no matter what hype the market is enduring.
Enter the STO
As one market trends dies, another is reborn. This is where STOs entered the picture. A security token offering, rather than a utility token offering, embraced the fact that tokens are actually securities. They have improved the approach to funding while providing greater transparency. For VCs in particular, this was a new opportunity to introduce the concept of tokenizing assets through STOs, which guarantees profit and provides liquidity to the notoriously illiquid industry of venture capitalism. As many blockchain-based companies hurried to become apart of the new funding phenomenon, token PR agencies had to be on top of their game to provide the necessary guidance for the newest crypto marketing trend.
Two examples of STOs
SPiCE VC for example, is the first fully tokenized VC that unlike traditional VCs, investors are able to invest with a much smaller quantity and with a complete guarantee of liquidity. This is a game changer for smaller and newer companies whose only choice of raising capital is from an investment, from a venture capital. The job of a token PR agency is to understand these market changes and to be prepared to undertake significant remessaging of existing clients. A strategy that works today may not work tomorrow.
The same can be said for BlueOcean Ventures II, the first tokenized MedTech VC that provides cryptocurrency investors access to three-year-old existing fund of 5 startups from the medical field. Offering investors an already existing portfolio provides proof of an asset backed firm that provides both liquidity and accessibility to its investors. This VC fund removes the burden and hassle of raising money through crowd sales and adds a huge advantage of trust for the shareholders. Any experienced token PR agency understands the volatile market of the crypto world and is equipped to handle major changes, such as a cancellation of an ICO or a creation of an STO. These agencies must remain on top of the latest evolving technology, as well as new trends in the marketplace, in order to best recommend the most innovative ways to brand a product.