The crypto bear market shows no signs of letting up, and it has already taken its pound of flesh from more than a few emerging web3 and crypto projects, not counting the ones it has killed altogether.
With no clear indication of a meaningful rebound on the horizon just yet, web3 companies that have managed to make it this far need to prioritize not only their survival but also how to convince their communities and investors that they will survive, particularly if their projects are struggling to stay afloat.
Maintaining the user base is critical for securing the expansion many web3 companies need to pull through this bear market. Potential investors and new users need to see from the outside that the community is choosing to stay put or, better yet, increase their engagement.
Startups that can demonstrate strong metrics and a responsive consumer base naturally have greater chances of survival, but that’s not where every startup is right now. For those in a tough spot, excellent communication is non-negotiable. There’s little benefit in declaring that the sky is falling and begging your community for investment, but an overly rosy outlook won’t fool anyone either.
Communicate to your community not only that you are in this together, but you’re working with the industry at large, too.
Here are some strategies for finding the balance:
Lead with the positive and broadcast your roadmap
It’s imperative to convey that your startup understands the reality of the market and isn’t blind to its cold, hard truths. But part of understanding the market is knowing that downturns aren’t permanent. This isn’t the end of crypto or web3 by any stretch. Adoption trends remain promising as far out as 2030.
The downturn already has some upsides when compared to the previous crash in 2018 and 2019. NFTs have more pull than they did then, and they’re surviving. Luxury and legacy brands are continuing to explore their options therein, and metaverse development has not ground to a halt.
