The headlines abound…
- Another regulator in another country issues a warning about the dangers of investing in ICOs…
- More severely, in a different jurisdiction, regulators declare a total ban on ICOs…
- And in yet another place, a regulator issues a cease and desist order against a particular ICO in progress and demands the return of money to investors…
And yet, notwithstanding these setbacks, the number of ICO’s coming to market continues to escalate.
Our (perhaps surprising) view is the regulator;s concern is more than justified and a set of new rules governing ICO’s is likewise justified. While the very rare action to ban ICO’s outright might be an overreaction, it is certainly a valid way to protect consumers until rules can be instituted.
Nonetheless, consumers continue to love ICOs because of the massive multiples in returns they can enjoy…. if it goes well.
But the 64 million dollar question remains – how does one significantly increase the chances that an
ICO WILL go well?
In simple terms, what self-imposed principles have we established and will we adhere to, in order to conduct a “superior” ICO with a much better chance of success, in our view?
To be clear, we have not adopted a single measure only because we think we will have to. Our view is that FENIX.CASH is a proposition that is here for the long haul – we will only achieve the potential that we so strongly believe in if we allow the platform to grow to a critical mass and enjoy mass adoption by artists, fans and tokenholders.
The launch of FENIX.CASH and any fundraising associated with it is merely a start in the process – our aim is to establish parameters that will allow the development and growth of the platform over time, and ensure that success (and difficulties) are managed in such a way that all parties can assess such issues and deal with them in a manner they deem appropriate.
With this in mind, there are several principles governing our thinking and they are all pretty consequential:
Have a profound, transformative idea which is made possible only by the opportunities offered by the blockchain and through cryptocurrencies – not a sham to purportedly justify an ICO.
When ICOs first burst on the scene, many viewed them as an easy way to raise substantial money – without the need for a robust idea, free from the regulations and constraints surrounding more traditional methods of fundraising. Well since that time, things have changed to the point where a successful ICO requires a massive, well-coordinated effort and, despite many widely held beliefs, there is little that is easy about it, notwithstanding less regulatory oversight than in say, an IPO.
Nonetheless, shoddy ideas still account for a not insignificant percentage of ICOs, which means that they (i) have a reasonable chance of failing and (ii) rightly increase cynicism surrounding ICOs in general.
We firmly believe that our ICO is based on an idea that is “almost profound” – It has the ability to revolutionize artists income and control (and indeed the industry) by providing a simple and new decentralized way for artists to better make money from the sale of music-related products, merchandise, tickets and access. And FENIX.CASH will allow them to do this without having to establish a complex e-commerce platform. Rather, by accepting our FENIX.CASH tokens into their wallet directly, artists potentially cut out reliance on, and the corresponding fees that are paid to middle men, the venues, managers, labels and publishers.
We also allow artists new revenue streams:
- By earning FENIX.CASH tokens from their fans use of a simply customizable version of our software with the artist’s branding; and
- Through the gratis grant of 30% of our FENIX.CASH tokens under the guidance of our Artist Manifesto.
And finally we will in the next stage, provide greater transparency and security to the artist with regards to their music itself, by using the blockchain to better track music plays in real time.
Do not launch an ICO and attempt to raise money until the primary product, invariably software, is conceptualized, designed and COMPLETED.
Astonishingly many ICO’s have a whitepaper that conceptualizes the software and NOTHING MORE. This in our view does a major disservice to subscribers for a number of reasons:
- The software may never be completed.
- The software will inevitably take months (or more) to complete. During this time there will be little reason for people to buy the Company’s tokens – Limited demand means that the tokens themselves will NOT trade well, in all likelihood, because it’s hard to generate excitement in a coin marketplace, without a product.
- Funds raised through an ICO should NOT be used for software development. If they are, the ICO may run afoul of regulators because clearly if people are funding development, it’s an investment. Rather there should be a COMPLETED PRODUCT and people should be buying coins for the UTILITY they offer.
FENIX has its primary product COMPLETED and indeed will, during certain of its meetings in the coming weeks, be able to demonstrate its effectiveness by allowing attendees to use the FENIX.CASH platform to buy tickets for a high-profile local artist show after the presentation and to buy exclusive products offerings from the artist there and then.
Not having a product increases the degree of subscriber exposure dramatically, but in the longer term, not having distribution, increases it dramatically too. Distribution should be assured from time of launch of the product.
FENIX has worked hard to ensure immediate distribution on launch and has done so through its relationship with its sister company, QTRAX, which will enjoy substantial distribution among its users, driven by its Telco distribution partners in its launch markets.
Having an organic, genuine and significant demand for the company’s cryptocurrency.
Subscribers of any cryptocurrency will be comforted by the fact that there is a likelihood of sustained, if not escalating, demand. A number of ICOs in recent times have seen the distribution of such coins with scant regard for the likely future trajectory of the coin demand and price.
Of course no predictions can responsibly be made about the likely future price of, or demand for, a company’s coins – But this does not eliminate the onus on a company to create an ecosystem where strong support is more likely than not.
In this regard, FENIX is hopeful of complementing its initial batch of subscribers with a much larger number of music fans interested in the utility and access our FENIX.CASH tokens provide. By way of example, (and not utilizing actual or predicted figures), it could be that our ICO involves 10,000 subscribers. However, more importantly, it could be that within the first year of operations we attract a million music fans desirous of the currency.
And because we are seeking to enhance the relationship between artists and fans, the key pull to investors is the existing relationship that they have with their favourite bands and their desire to tap into that through the use of FENIX.CASH tokens, rather than any great love for the tokens themselves. Existing and longstanding demand of this nature is far more stable than relying on users to buy into the appeal of the underlying token itself as the principle reason to participate.
We consider creating adequate support to be one of our obligations and a key pillar that will underpin the long term success of FENIX.CASH.
Transparency- Critically important in ICOs as in, arguably, all fundraising.
We don’t see any room for caginess – not in terms of who we are, what we are doing to launch this ICO, nor what we have done in the past.
Many ICO’s provide woefully inadequate information in all three of these categories. In fact who we are and what we are doing to launch this ICO will be evident to all interested parties through the launch of a regular vlog of the journey that we are undertaking – a video that we will post frequently summarizing our activities, and helping users to understand the industry, our proposition, and of course trying to demystify much of the new world of the blockchain, cryptocurrencies and ICOs in general.
We are more interested in transparency than in the secrets of putting an ICO together. We want you to follow our progress, perhaps learn from it as either a subscriber or a company, and very importantly get to know us – probably quite well. And our past, warts and all, will be available on our website.
Utilizing industry leaders who understand the need for change.
It’s great talking about revolutionizing an industry but is the revolution desirable and/or even possible?
That question can best be answered by highly respected industry leaders who understand the industry issues, see the potential of our solutions and believe that they can be successfully executed. You will hear more from our highly respected industry mavens in the coming days – via video interviews.
Let me conclude by saying that our commitment to a superior ICO which has the greatest likelihood of delivering a good result for our subscribers, is unwavering, perhaps even bordering on obsessive. We will do everything in our power to provide our subscribers with the rewards they deserve for putting faith in us.