TALLINN, ESTONIA, November 17, 2022 /EINPresswire.com/ — Understanding token investors’ priorities is crucial for a successful IDO. The new study report by BDC Consulting reveals how experienced and novice IDO backers select projects – and provides projects with insights on how to attract up to 720% more token buyers.
820 users, 28 countries: one of the first global studies of IDO investors
The latest study by BDC Consulting is arguably the most representative survey of IDO backers: in its first stage, the team surveyed 820 crypto holders, including 502 active IDO participants. Most of them were from North America (20%), Southeast Asia (16%), and South Asia (12%), with Eastern Europe and West Africa accounting for 9.9% each. The data weights and quotas used in the survey were based on the most recent reports by Kepios, Digital 2022 Global Overview Report, Chainanalisys, TripleA and World Bank.
83% of the respondents male and 17% female. 50% were full-time employees, while 32% were freelancers or business owners.
Finally, 39% could be described as novices, while 61% were experienced crypto users. The division was based on the year of one’s first transaction, transaction frequency, and the duration of following the market.
In the second stage, the researchers conducted a series of 10 in-depth interviews with token investors, lasting around an hour each. This provided unique insights into the psychology behind the investment behavior revealed by the survey.
The key insights: up to 780% more potential buyers with a large media campaign
How much of one’s portfolio is allocated to crypto is correlated to the BTC price change in the year when one enters the market. Those investors who conducted their first crypto transaction during the bull market are more prone to increase the share of crypto in the overall portfolio.
Those who entered in 2017-2018 and 2021 hold up to 90% and 60% of their assets in crypto, respectively. The researchers therefore expect that those who entered in 2022 will have a lower share of crypto in their portfolios.
– Novices find out about projects through ‘hype’, while experienced investors base their decisions on research and conduct a deeper analysis of each project.
– Experienced investors read reviews and analysis by experts, closed groups, and channels they trust. Novices also listen to influencers, but the decisive factor is a large number of touch points (Google search results, media mentions, banner and target ads), as this creates an impression that ‘everyone is talking about’ a project.
– Both categories of investors prioritize a project’s content (how it works, problems being solved), a strong community, and the team – it needs to have a relevant background and member profiles in social media, at least for the CEO and advisors.
– Experienced investors choose a launchpad or exchange based on the quality of projects it lists, while novices look at a platform’s popularity.
– Novices mostly participate in token sales on large, well-known exchanges (Binance, Huobi, Kucoin, etc.). They do buy through launchpads, too, though some noted that they couldn’t understand their interfaces and felt cautious about buying a launchpad’s own tokens, which are needed to take part in IDOs. Novices prefer large, well-known launchpads, such as DAOmaker, PancakeSwap’s IFO launchpad, TrustPad etc.
– Poor UX is the most common drawback of IDO launchpads and exchanges that both novices and experienced investors complain about. For launchpads, the large number of scams is another commonly mentioned problem.
Investment amount & outreach
– As users research projects, their investment corridor (the highest and lowest amount they consider investing) shrinks by a factor of 1.5-2x: for example, from $100-500 to $200-300.
– On average, investors hold purchased tokens for 1 month. For experienced investors, the average is 1 to 3 months, while it’s 2 weeks to 1 month for novices.
– Projects that are already familiar to investors raise 2-3 times more funds than unfamiliar ones: $508 as opposed to just $188, the median investment being $400 for all IDOs.
– A large media campaign can allow a project to reach 720% more potential backers (compared to a project with a small or no campaign) and attract up to 33% more actual investors.
– Altogether, launching a major media campaign can help secure 5 times more proceeds. This is a combined effect of increased familiarity and a bigger outreach.
– The effect is even stronger for experienced investors: a large campaign can attract 780% more users and 7x more funds.
The study’s importance for IDO projects
Before partnering up with a launchpad and launching a promo campaign, IDO projects should consider who their target audience is and what its priorities are. For example:
– Since newbies hold tokens for 2-4 weeks, they won’t be attracted to a project with a long lockup.
– To attract a novice audience it’s important to have multiple touch points, including banner ads, while to attract experienced investors, projects should focus on working with popular closed groups in Telegram and influencers.
– When targeting novices, it’s better to launch on an exchange or popular IDO launchpad, while experienced investors will be found on launchpads known for high project quality.
The full version of the report is available on the BDC Consulting website, together with many other studies by the company, ranging from SocialFi to the role of women in crypto.