We know you like funny stories and macabre stories. This is why we wrote you a beautiful, fiery article on the 5 most rotten ICO campaigns of all time.
There, in this short article, we are more interested in the people in charge of communication. All people who manage marketing in a broader way, from public relations managers to community management.
If you want to become a cryptocurrency millionaire , it's clear you'll need to learn how to avoid these dodgy ICOs.
We wanted to take an interest in these ICOs because they clearly show how communication is crucial for any self-respecting ICO. In the ICOs we have chosen, we show you how bad communication can destroy everything: from the reputation of the founders to the cryptocurrency itself.
So without further ado, here are the biggest failures due to poor marketing and advertising.
The 5 most failed ICOs in history:
Centra Coin
CentraCoin is a story of spectacular failure. The project was launched with great fanfare just as ICOs were taking off. What's interesting about CentraCoin is the two individuals behind the marketing campaign. First, there's the well-known boxer Floyd Mayweather , and then the controversial DJ Khaled with his 14 million followers. It worked quite well because CentraCoin was targeting the general public and had decided to launch a Bitcoin debit card. But that's where the fairy tale ends.
The founders paid these celebrities handsomely to promote it. But you know what? That wasn't enough to hide the legal troubles in the US. One of the founders, Raymond Trapani, was arrested on April 20, 2018, and charged with fraud related to his failure to declare the $25 million he received for his ICO. After that, there was little to no news. The two celebrities never spoke about the project again. Nothing. Nada. Nothing. Oh, and later, they claimed to have reached an agreement with Visa, which even Visa categorically denied… In short, a story of a spectacular and spectacular failure.
tezos
Be careful, I'm making spoilers. Only the ICO was screwed up at Tezos. Not later, the project showed its solidity and seriousness. The Tezos ICO generated $232 million, but it all fell apart when the team behind it started bickering among themselves. According to Reuters, Tezos managed to be one of the most successful token sale campaigns in ICO history. Yes, that's a shame because the project was well put together.
That said, the management conflict triggered panic among investors, and Tezos's value plummeted by over 70% in just a few hours. The problem is that all investors knew about it. A management dispute is indeed a very bad, even the worst, signal to send to clients. After reaching $11, a Tezos token was now worth only a few cents …
Enigma
Enigma had generated a lot of buzz because the project aimed to revolutionize encryption methods. However, the renowned magazine TechCrunch revealed the ultimate incident : a major hack worth over $50,000. The Enigma team was robbed of $500,000 just before their ICO was about to launch, after suspecting a scam targeting Enigma investors. This is what ultimately caused the token to plummet. The communication was atrocious and extremely superficial. No one tried to reassure investors. After being worth over $5, the token is now worth $0,30. Yes, it's a significant loss for investors.
CoinDash
The team had raised over $6 million, but ultimately admitted defeat when CoinDash was hacked for over $6 million. The team announced its defeat and admitted to being totally broke. The tokens had completely disappeared. Communication on the subject was extremely poor. The team gave up very quickly, giving a signal to investors to give up too.
Narrative Network
This may not mean anything to you, but know that it makes a lot of noise. In fact, if you're familiar with the Steem network, you might like it. Indeed, Narrative Network aimed to be a sort of Medium/Steem rewarding all contributors. The problem is that they were more interested in paying themselves…if you know what I mean. Yes, 50% of the funds raised (more than $7 million) were distributed to the founding members and the development team. That's quite a lot of money, isn't it? Such a large sum that the token was irrevocably devalued...Greed, greed!!
So there you have it for the most messed up ICO campaigns in history. What we know is that the list is likely to grow over time, that is a certainty.
If you don't want to experience the same failures, you can always read our article which explains how to create and succeed with an ICO!
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