3 Ways to Scale a Crypto Startup in 2023
Cryptocurrencies and NFTs are becoming household names, and yet are unarguably the most despised form of wealth by the average Joe. Every major innovation that had the potential to disrupt how the market worked was hated initially. Nothing is much different with cryptocurrency, either. But it’s extremely difficult to be a long-term player if you work in a business model that fails to gain the consumers’ trust. In conversation with Sandeep Nailwal, here are 3 key points to keep in mind when building a crypto business.
1. Understand consumer’s point of view
Cryptocurrency is a new-age digital form of currency which is an alternative form of payment created using encrypted algorithms. It’s both a currency and a virtual accounting system. Naturally, the whole world is used to using regular money, and everyone understands its scope. So not much is left to surprise. Crypto being a disruptor, is financialising everything. Have a piece of really cool artwork? Make that into an NFT and earn money. Wanna sell the world’s most unique tweet? No problem with that too! This constant flipping and change of ownership are decentralizing how much one unit is worth. Hence, a lot is subject to volatility. Anyone’s money involved in such a project is bound to second guess its credibility the moment market shifts occur.
2. The hype cycle eventually ends
If done well, most startups today in crypto and Web 3.0 see a climbing graph. Even in India, there have been crypto startups that have made $5 to $10 million in the first six to twelve months. Thinking that this graph will only be on a steady rise, usually causes these businesses to crash and burn to the ground.
Crypto is a speculative game. When you try to decentralize an industry, you automatically subject yourself to unregulated market trends. Much like the dot-com boom or gold rush era, many startups won’t survive this game simply because they forget to consider the rainy days.
3. Make it a mission-driven business
While it comes with its cons, the advantage of crypto is its transparency. Utilize this to win over your customers. Today, everyone wants to become a contributing member of society. Today consumers, including the tech-savvy millennials and Gen Zs, want to be responsible for making the world a better place. Create business models and projects that look at the bigger picture. Not asking to shift your goal, but rather add the pursuit of a greater good and minting money. This will not only make crypto more popular but also take away much of the guilt from economic disparity.
World’s biggest brains know that there’s a ton of accessible capital in our hands, and they are making sure to capitalize on that. Sure, you can make a lot of money, but you won’t be able to keep it if people think you are running a Ponzi scheme. Get started with these three crucial pieces of advice.
Listen to the entire episode here for more insights on everything crypto.
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