Blockchain startups have largely been expert showmen in 2018, complete with slick media campaigns, modern websites and expert presentations. Any serious business needs professional looking marketing, and being plugged in to the latest in technology, many of these startups mastered the look. Unfortunately, any serious endeavor also needs a serious business plan to backup all of that sweet, sweet marketing, and that is what most blockchain startups lack.
According to Bloomberg, over half of startups that raised funds via initial coin offerings (ICOs) died within four months of the completion of their sales. This trend has been all too common in the crypto sphere. Companies dream big, but fail to deliver. At best, these failures were the result of poor execution and management by their teams, at worst, they were blatant money grabs that never intended to offer any substance.
However, blockchain is here to stay. While hype levels have died down from their peak a year ago, the tech is still poised to revolutionize countless industries. The trouble is distinguishing which startups will truly make an impact from the ones that are all talk.
Looking past all the sleek visuals, what markers best indicate that a startup is the read deal?
Germany’s Lition may have an answer. In an effort to provide transparency, Lition’s development team has started posting frequent on GitHub, allowing open observation of their progress. Currently, Lition’s peer to peer energy platform code is live on the site, with future updates coming soon.
Lition is one of the only blockchain startups that has already deployed its live network serving real clients and is broadcasting development milestones for the whole world to see. Most startups have conducted ICOs, then promised to get to work. Lition has done the opposite. Both their prototype and working model were readily available before they began conducting their ICO, which is scheduled for March 2019.
It’s not that Lition doesn’t have a professional aesthetic (you would be hard pressed to find a prettier website), it’s that they back up their presentation with substance in the form of a working network, real revenues and transparent progress.
Lition isn’t asking investors and token buyers to take a leap of faith, they are extending an opportunity to hop on board with a working solution. Successful blockchain projects will not be judged their flashy ideas, but by their delivery and execution. Try and dig deeper into any blockchain startup’s model. If there is nothing more to find, chances are, there never will be.