Is there a plan B if you can not reach the softcap? Maybe you interrupt the ICO until the market has recovered?
Well they have four real options:
1. End the token sale and close the project (if you can’t raise the softcap you’re probably going to struggle in business as there clearly isn’t enough demand).
2. Pause token sale, continue working on development, re-start token sale when markets have picked up again.
3. Close token sale and Try to secure private funding from VC’s, angel investors, banks, etc..
4. Try to develop project with funds raised even if they are below softcap level, lower the budget, less workers, etc..
There’s a few different options most projects pick option 2 or 3 because it’s hard to give up something before it’s even started.
In times of market downturns, I agree, option 2 is the most sensible. However, it is important to remember that even when markets pick up it doesn't guarantee success for a project as it might have lost its hype.
I agree. But most ICO tend to go with the closing down/pausing the project go back and re-strategize then come back with new improvements to their proposed project and start another token sale.
We have experienced this scenario most especially this year a lot. And many projects have experienced an extension in their said sales date for different reasons with the down trend of market being the most of it.
Yea, that's the norm this year, its crazy with all that has been happening in the industry and the market this year, its really difficult to get the needed capital and pull through the ICO process but lets just be optimistic and see how things turn out, they can pause for a specific period and let the market decide on the next direction