{"id":180182,"date":"2023-10-24T21:47:54","date_gmt":"2023-10-24T16:17:54","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=180182"},"modified":"2023-10-24T21:47:54","modified_gmt":"2023-10-24T16:17:54","slug":"expert-advice-to-help-web3-companies-survive-precarious-economic-times-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/expert-advice-to-help-web3-companies-survive-precarious-economic-times-crypto-news\/","title":{"rendered":"Expert advice to help Web3 companies survive precarious economic times – Crypto News"},"content":{"rendered":"
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No industry, and no business, is a fan of economic uncertainty, and many financial experts consider the current global market to be precarious. While every business has to look at ways to shore up operations and cut costs in a down economy, the effort can be particularly challenging for Web3 companies, which are relatively young, may have fewer ready resources than their more established Web2 counterparts, and operate within an industry many outsiders don\u2019t understand and don\u2019t grasp the value of.<\/p>\n

Should the macro-economy take the turn some are predicting, only those companies \u2014 no matter their industry \u2014 that have taken steps to prepare for the storm will weather it well (or at all). Below, 14 members of Cointelegraph Innovation Circle<\/a> share their advice to help Web3 companies take proactive steps to ready themselves and their communities for what could be a difficult road ahead.<\/p>\n

Define your purpose<\/h2>\n

In an uncertain market, Web3 companies must have a defined purpose. Curious participants looking to expand their financial, social or cultural horizons through a novel service must first be convinced of its utility. Discussions of value aside, true innovation reshapes how users spend equally precious commodities: time and energy. To remain competitive, executing well is only half the battle. \u2013 Oleksandr Lutskevych<\/a>, CEX.IO<\/a><\/p>\n

Solve a real, high-value problem<\/h2>\n

Engineer value within your product, platform or protocol and solve a real, high-value problem. Customers pay for painkiller products \u2014 those that solve immediate problems \u2014 not for vitamins \u2014 \u201cnice to have\u201d products. Web3 companies must gravitate toward considering the magnitude of a given problem and the value they can add, not just be \u201cme too\u201d players living on hype. \u2013 Nitin Kumar<\/a>, zblocks<\/a><\/p>\n

Build a brand with a clear story and value proposition<\/h2>\n

What do Apple, Microsoft, Instagram and Slack have in common? All are global, household-name brands that started during times of economic recession. The lesson here is: Don\u2019t just build a company or a product; build a brand with a clear story and value proposition that will justify your existence even when times are tough. That\u2019s what will carry you through. \u2013 German Ramirez<\/a>, THE RELEVANCE HOUSE AG<\/a><\/p>\n

Prioritize increasing daily active users<\/h2>\n

Web3 companies should prioritize increasing their daily active users as a metric of genuine engagement. Simultaneously, they must extend their financial runway to ensure sustainability over the next six months, even in a volatile economy. Attracting a broad customer base will be key, but retaining them with trust and value will be paramount. \u2013 Erki Koldits<\/a>, O\u00dc Popspot<\/a><\/p>\n

Target less essential areas for cost cutting<\/h2>\n

Reduce costs without reducing your upside. When adapting to difficult market conditions, Web3 businesses should ask themselves which expenses are most vital to the company\u2019s core value proposition. Then, target less essential areas for cost cutting while preserving the elements that are critical for your product quality and sustainable growth. \u2013 Wolfgang R\u00fcckerl<\/a>, ENT Technologies AG<\/a><\/p>\n

Find a way to add value to Web2 businesses<\/h2>\n

Target a basic customer need to de-risk your company. I don\u2019t believe Web3 technology has to be segregated from the rest of the economy; there\u2019s no reason to rebuild the entire market economy for Web3. Find a way to add value to Web2 businesses, and plan now to scale up when it makes sense. I think we\u2019re through the times of easy money and flash-in-the-pan successes. Play the long game. \u2013 Stephanie So<\/a>, Geeq<\/a><\/p>\n

Focus on interoperability<\/h2>\n

Web3 companies should focus on interoperability. As the economic landscape shifts, the ability to seamlessly integrate with various blockchains and traditional financial systems could be a lifeline. It not only diversifies risk, but also opens up new avenues for user acquisition and revenue. Being too insular in your tech stack can be a hidden vulnerability when the market tightens. \u2013 Tiago Ser\u00f4dio<\/a>, Partisia Blockchain<\/a><\/p>\n

Build your product and your community of core supporters<\/h2>\n

Now is a good time for a Web3 company to reevaluate and focus on building its product and its community of core supporters. As the market quiets down, a lot of the high-profile, low-substance companies will go into hibernation. Conversely, the ones in it for the long haul have an opportunity to grow their user bases and feature lists away from the cacophony that has come to characterize bull markets. \u2013 Jason Fernandes<\/a>, AdLunam Inc.<\/a><\/p>\n

Prioritize strong security and risk management<\/h2>\n

Prioritize strong security measures and hefty risk management strategies to protect digital assets and user data against potential vulnerabilities and uncertainties. In the volatile Web3 space, data leaks can be devastating. Implementing decentralized storage, advanced encryption and continuous security audits is paramount to safeguarding both user trust and your company\u2019s reputation. \u2013 Anthony Georgiades<\/a>, Pastel Network<\/a><\/p>\n

Avoid spending on social influencers<\/h2>\n

Web3 companies should refrain from spending on social influencers. After 2022, many influencers on YouTube, TikTok, and similar platforms fell from glory due to their paid endorsements of Luna and FTX prior to their unprecedented crashes. These social influencers lost respect in the industry, and there is still mistrust among the public. It\u2019s definitely not worth the potential reputation hit. \u2013 Ayelet Noff<\/a>, SlicedBrand<\/a><\/p>\n

Look for more efficient marketing methods, and stay in touch with regulators<\/h2>\n

There will be economic uncertainties forever. To deal with unseen and precarious financial times, Web3 companies should focus on more efficient ways of marketing, like replacing ads with SEO. Further, they should stay in constant touch with regulators to seek their support wherever possible. This also helps to address some of the misunderstandings that regulators have about crypto. \u2013 Abhishek Singh<\/a>, Acknoledger<\/a><\/p>\n

Allocate resources to in-demand innovations, and stress quality over quantity<\/h2>\n

The most important step when resources are constricted is to identify areas that are most in demand and allocate resources to those technological innovations. Second, offer quality over quantity to your community, and distinguish your brand by building with purpose \u2014 the Web3 space frequently \u201cbuilds in public,\u201d which is beneficial and can be leveraged to bolster both of these points. \u2013 Megan Nyvold<\/a>, BingX<\/a><\/p>\n

Showcase the power of Web3 governance models<\/h2>\n

Times of economic uncertainty provide an opportunity to showcase the power of Web3 governance models. It\u2019s time for Web3 companies, particularly DAOs, to get their ships in order and mitigate their financial risks in a fast-evolving economic landscape. Accountability and transparency will allow them to prioritize resilient revenue streams and collectively ensure long-term viability. \u2013 Sheraz Ahmed<\/a>, STORM Partners<\/a><\/p>\n

Keep your developers and community excited<\/h2>\n

As low global liquidity levels lower crypto token prices, keeping both your developers and your community excited will become a challenge in this bear market. Stay ahead of the pack in terms of technology; don\u2019t rest on previous bull market victories. If you need to airdrop some NFTs or tokens to developers and active community members, go ahead. \u2013 Zain Jaffer<\/a>, Zain Ventures<\/a><\/p>\n

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This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

No industry, and no business, is a fan of economic uncertainty, and many financial experts consider the current global market to be precarious. While every business has to look at ways to shore up operations and cut costs in a down economy, the effort can be particularly challenging for Web3 companies, which are relatively young, […]<\/p>\n","protected":false},"author":2,"featured_media":180183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-180182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/180182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=180182"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/180182\/revisions"}],"predecessor-version":[{"id":180185,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/180182\/revisions\/180185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/180183"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=180182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=180182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=180182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}