Rome wasn’t built in a day. The same is true of your ICO project whatever it may be. Rome was built though. Every project starts out as a concept, an idea in one’s mind. The moment you plan to raise money or use the capital of others within your project, it has to be more than just an idea.
This issue has been plaguing new ICOs which have been coming on stream to raise capital, and it is what results in such a high failure rate at reaching investment targets. Investors want to see something real, something which is quantifiable for their investment. Unfortunately, many ICOs are running on concept alone which results in a plethora of problems.
Lack of Trust among Investors
This is huge. The lack of a prototype or MVP (minimum viable product) creates an environment of distrust among investors. This may be completely incorrect but many investors have a criteria they want to satisfy in order to invest in a project and a working model is right at the top of this list.
Lack of Respect in the Community
The crypto community is increasing in number and influence by the day thanks to platforms such as Telegram. Their positive feedback can prove key to unlocking the door for your ICO to achieve its investment targets. If you are operating on concept alone however, be prepared to have holes picked in your project. The issue with this is you have nothing to physically back up your claims to success besides more claims.
Motivation Moving Forward
For many projects, development of an MVP is a huge milestone. This signifies both to yourself and your target audience of investors that you are not only passionate and willing to devote time and energy to the project, but that you actually believe it can work. This ultimately means that even if you happened to fall short on your investment goals, you still have a core motivation to continue with the project.
In Summary, an MVP is becoming more and more necessary to differentiate your project and make it stand out from the crowd of others which are competing for the same investment capital.