Surviving Financial Instability: Crucial Advice for Web3 Companies from Cointelegraph Innovation Circle
Summary:
This news piece discusses the advice given by 14 members of the Cointelegraph Innovation Circle to Web3 companies on how to survive during financial instability. The advice includes having a clear purpose, solving real, high-value problems, building a brand with a clear story and value proposition, increasing daily active users, targeting less essential areas for cost cutting, adding value to Web2 businesses, focusing on interoperability, reevaluating product development and community building, prioritizing security measures and risk management strategies, avoiding spending on social influencers, focusing on efficient marketing methods, allocating resources to in-demand innovations, showcasing the power of Web3 governance models, and keeping developers and community excited.
In a volatile global marketplace, no sector or firm enjoys financial instability, and experts peg the present worldwide market as unstable. Web3 companies, which are typically younger, lack the robust resources their Web2 counterparts possess, and function within a sphere not wholly understood or appreciated by outsiders, might face substantial challenges in streamlining operations and reducing expenses in a weakening economy. Only those firms that have prepared for anticipated economic downturns, regardless of their sector, are likely to withstand the hardships successfully. In this regard, 14 members of the Cointelegraph Innovation Circle share sage advice for Web3 firms to proactively prepare for potentially tough times.
To thrive in an unstable market, Web3 firms need a clear mission. Users intrigued by these novel services need to be convinced of their utility before investing their valuable time and energy. To stay competitive, execution is just as crucial. Further, Web3 firms should engineer value within their products and fix real, high-value challenges. A product that resolves immediate issues has more value to customers than "nice to have" products.
Establishing a brand with a clear mission and value proposition, much like Apple, Microsoft, Instagram, and Slack, can ensure survival during tough economic conditions. Moreover, Web3 companies should prioritize growth in their daily active users and financial runway, with user engagement and trust being the utmost priority. Cost reductions should focus on non-essential areas while preserving vital company assets for product quality and growth.
To de-risk, Web3 companies should add value to Web2 businesses and target basic customer needs. Interoperability is also crucial to surviving changing economic conditions as it reduces risks and opens up new paths for user acquisition and revenue. Concentrating on product development and community building can help face rising market challenges.
Companies should also incorporate strong security measures and risk management strategies to protect digital assets and user data against potential vulnerabilities in the volatile Web3 arena. Companies should avoid spending on social media influencers and focus instead on efficient marketing methods like SEO.
In uncertain economic times, companies should allocate resources to in-demand innovations and deliver quality over quantity. This period presents an opportunity for Web3 companies to highlight the power of their governance models, emphasizing accountability and transparency. Lastly, keeping the developers and the community engaged and at the technological forefront is critical for survival in this bear market, even if it requires airdropping NFTs or tokens to develop and active community members.
This report was published by Cointelegraph Innovation Circle, a select group of senior executives and expert individuals from the blockchain technology industry, using the power of connections, cooperation, and thought leadership to build the future. These opinions may not necessarily reflect the views of Cointelegraph.
Published At
10/24/2023 4:00:00 PM
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