The Relevance of Transparency in the Branding of an ICO or STO

During the frenzy of the ICO craze of 2017–2018, branding meant little more than creating a logo and building hype on social media. Those times are over — in the current economic climate, only startups with solid tokenomics, a sound business plan and strong branding will survive.

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Thus, a strong branding strategy is essential to convince the doubters. However, a clear line needs to be drawn between persuasion and fabrication. The truth will come out in the end and a lie can cause significant reputational damage. So while aspirational language and even a little exaggeration is not a problem, the fundamental essence of the brand must be firmly grounded in reality. Here are some important considerations when building a successful blockchain brand.

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The Name

‍Choosing a name might sound like the easiest part, but it entails a lot of thought. Unfortunately, the reputation of the crypto world has been tainted in recent years and you may not want to directly associate your brand with a field that evokes negative connotations. Rather than emphasising the underlying technology, therefore, try to find a name that reflects your goals, or a metaphor for what your product or service offers.

Names featuring words like “block”, “chain”, or “crypto” are extremely common and do not last long in the memory as a result. Get creative: go for something that reflects your vision and mission. For instance, if you are targeting the financial sector, your name should express the qualities that make your company great. A name like “Falcon”, for example, is a metaphor that suggests swiftness, alertness, elegance, and the predatory instinct to seize an opportunity. Whereas a name like “FinBlock” only highlights the underlying technology of your company, without conveying any of the core values of the firm.

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The Logo

‍Your logo can tell a whole story, so make sure it is delivering the vision and values you want to convey. Colors can play an important role here, but remember that the feelings they evoke are not universal. For instance, white doesn’t mean elegance and purity everywhere: in fact, it represents death in India. Examining the logos of the most successful ICOs, there is a whole rainbow of color. The most important consideration here is what feelings and emotions the color represents for your target group. A fintech company with a pink logo would be unusual, for example, because the target market is more accustomed to colors like blue, black and grey, which are traditionally associated with reliability and trustworthiness in this context.

Some research suggests that the human brain remembers logos better when they are enclosed in a shape (such as a circle, oval, or square), such as the logos of VW and Starbucks, for example. With any logo, however, the golden rule is “keep it simple”. On a psychological level, simple logos tend to be more memorable. Thinking more practically, a logo needs to work in many different settings — from a letterhead, to the side of a building. Thus, the more simple it is, the more adaptable it will be to different use cases.

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The Website

‍The website is more or less the first point of contact between potential investors and your brand. Function should always take precedence over form — the most eye-catching and complicated designs are not always the most user friendly. While a little innovation can help you stand out, don’t try to reinvent the wheel: users rely on familiar cues to find their way around your site. They will expect a menu at the top and social media icons in the footer. The more you deviate from these norms, the higher the chance that users get lost and give up in frustration. Here, it is a good idea to employ User Experience (UX) guidelines. These are used to nudge users towards a certain action such as subscribing to social media channels, or visiting the ICO/STO landing page.

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The Social Media Communities

‍Community building is the backbone of any STO branding strategy. Make sure to target your efforts: define key target groups and identify the social media channels most likely to reach them. You shouldn’t always post the same content to Twitter and Linkedin, for example. Define how you want to be perceived by your audience and adopt a consistent tone in your communication (posts, answer to questions). Particularly in the case of an ICO or STO, it is important to recognise that you need people to buy in emotionally as well as financially.

After the boom and bust of the ICO wave, investors are fed up with big, unrealistic promises. Thus, transparency is essential when branding your ICO or STO. Aim for perfection, but don’t forget that being perceived as authentic is relevant to your success. At THE RELEVANCE HOUSE we help startups build enduring brands that are tailored to the blockchain market. Check our website to find out more about us.

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