It’s been a catastrophe. No, really. The cryptocurrency market went from $800 Billion to $120 Billion since the bears took over on December 18th, 2017. These means that 85% of the industry’s value (or capitalization) has just vanished into the air, and that’s been pandemonium for the blockchain industry.
Take ETCDev, which is the development team that had a lot of the initiative in developing Ethereum Classic (an Ethereum fork tailored for Ethereum purists). It shut down its work, after announcing it. What happened next? Hackers performed a successful 51% assault on Ethereum Classic and went away with half a million dollars in ETC coins.
Consensys, a company that provides blockchain-based solutions, got rid of 13% of its workforce. Steem, a publishing platform which rewards content producers with a native cryptocurrency instead of the infamous “likes” retained only 30% of its employees. Both companies had to do this because they had no other way to face the music the bears have been playing on the market for more than thirteen months. Another example is Sirin Labs. It raised $150 Million USD in its initial coin offering (ICO) and now, according to Moshe Hogeg, the company’s Chief Executive, that will barely be enough to stay around for one year at the most, but maybe for six months only.
But in every crisis, there’s always a small group of people who manage to keep moving forward despite the market’s harsh hostility. And some of them not only manage to keep progressing, but they positively thrive when everybody else is between a rock and a hard place. What do those people do differently, and what can we learn from them? They stick to three simple rules. Here they are.
Securing meaningful partnerships.
2017 was obviously the year of fundraising. Just remember the insane amounts of ICOs we saw during that year. The current year will be the opposite. It will be about building and consolidating. Partnerships are a great way to achieve those goals and the blockchain universe, decentralized and open-sourced as it is, offers a myriad of possible partnerships.
Tron’s summit (called niTROn) happened just a couple of weeks ago. Contentos used the opportunity to announce its new project. This is a worldwide content platform that’s caught the eye of investors such as IDG Capital, Binance Labs, and DHVC. What’s the new project? A partnership with RatingToken that will result in a website that will be able to express online predilections about several tokens in numerical, measurable terms. If they succeed, it will be a completely new way to look at crypto verses.
RatingToken is already doing that to some extent. It takes social media trends, GitHub analysis, and smart contract audits as inputs, so it’s focused on appraising smart contracts and initial coin offerings, for the most part.
Currently, RatingToken has the capability to quantify online sentiments about various blockchain projects using metrics such as social media trend, GitHub analysis, and smart contract audit. Thus RatingToken is focusing on assessment of ICOs and Smart Contracts.
But dAṕps are the new wave. They’re growing exponentially and they can become the face of crypto for people who are otherwise uninterested. Decentralized applications could be the means to offer cryptocurrencies and blockchain-based technology to the masses. Just take TronBet, a dApp that has transacted north of $170 Million just in the last seven days or so.
So the joint efforts of Contentos and RatingToken will focus on assessing decentralized applications.“RatingDapp will provide metrics like user retention and user activity distribution for each Dapp. The metrics that aren’t found on other websites. By doing this, developers and the users could get a better idea of the performance of a Dapp” according to RatingDapp Product Director. Going back to TronBet as an example, the highly active user population has grown rather slowly while low activity users have arrived in legions, especially during the last week. This seems to imply that the developing team has managed to get attention from an infrequent user base. This illuminates what’s happening behind the scenes in the project.
Contentos boasts more than a million content producers scattered all over the world. Apps with tens of millions of users such as Cheez, LiveMe, or PhotoGrid will also be involved. RatingDapp will benefit greatly by tapping into such resources and will get exposure to millions of users around the globe. That turns potential into reality and builds traction and awareness.
The Senior Director of Business development explained that,
“By identifying and onboarding high performing DApps, our aim is to continuously strengthen the relationship between our protocol and our community.”
Partnerships allow every party involved to leverage talent pools much bigger than the ones they have to begin with. It also expands the community and creates overlaps among different projects and users. That increases a company’s probability of developing a product that really has a fighting chance at mass adoption.
A bearish market is ugly and painful for sure. And pain is, unfortunately, one of the most effective ways we humans have to learn and move forward. So even bear markets bring opportunities along. Maybe not the chance to make a lot of money (but they actually do for those who master the art of short positions) but the occasion to stop, think, and review a project’s goals and priorities. That means choosing.
You’ll have to analyze your situation to determine if you’re overextending, the let go of some of the things you’re doing (or trying to do) so that those resources can be allocated into the actions that help the company to achieve its goals most efficiently. And that will increase the company’s maturity and sophistication by being judicious and selective.
Consensys had to go through that. The company decided to focus so emphatically on lean operations and profitability that it rebranded itself as Consensys 2.0. If you drop the projects that are irrelevant for your ultimate goals and implement rigorous spending standards so you can enhance profit, and your company refocuses can be a veritable rebirth.
Sirin Labs is currently facing this situation. In order to keep the company alive, it seems it will opt to develop software solutions which can be built more quickly and cheaply than hardware. Thus profits arrive earlier and the costs go down. Does this mean that Sirin Labs will definitely quit on its hardware-related plans? Not necessarily. It just means that the current crisis in crypto needs to be dealt with. There will be a time, in the future, to do everything else but, for now, they must concentrate on the shortest possible path to success.
Do you need one further example? Well, there’s Bithumb, the famous Korean exchange. It started a voluntary severance program on 10% of its workforce. A company’s spokesman clarified the move in a recent interview as an effort to concentrate its resources on the development.
If a company can locate the leaks in their business model and take early measures to fix them, it can save a lot of time, money, energy and increase the space it has to move within a hostile environment.
It’s all about adoption
Do you know the golden rule in real estate? It’s “location, location, location” Well if crypto has any rule of the sort it would be “adoption, adoption, adoption”.
Many crypto observers think that one of the causes that led to a catastrophic year for the market in 2018 was that many of the new projects born during 2017 were essentially useless. Hence, they lacked use cases which means that they can’t achieve adoption at any level.
But that’s not true about every project in the cryptoverse. Some (a few only, to be sure) do have some very clear use cases and they are finding their way towards mainstream adoption slowly but surely. Tron, Stellar Lumens, Cardano, Litecoin and Ripple are among those projects. It’s not a coincidence that all the mentioned blockchains are among the world’s top ten by market capitalization.
Let’s take Tron as an example. It already has three times as many users as Ethereum concerning daily users if we go by the top three decentralized applications running on its blockchain. Tron has focused on developing attractive dApps. That’s made the network’s user base grow five times over the last 60 days. And that will be nothing when all of the current BitTorrent users (100 million monthly) become Tron users, even if unaware.
So the principle is to create products with real-world use cases. And also to market them correctly. You need a good product that can really claim a competitive advantage but you also need to let the world know it’s there for them to use it. Both things matter. That makes your token’s holders be confident in the project’s outlook and it attracts new developers to adopt your platform for their projects, apps, and smart contracts.
The more dApps in a given blockchain, the better its stability will be. Even more relevant is that this kind of behavior can set your company apart from the rest and protect it from price swings driven by pure speculation because your token’s price will be driven by authentic demand.
So now you know. There’s no reason for you to die under the bear’s hug. You can be more skillful, more intelligent and overcome the bears’ brute force. And now you know exactly how to do that.
[Image courtesy of africom.mil]
Disclaimer: All information provided through this article should not be regarded as investment advice, nor should be taken for granted for crypto trading purposes. Before making any investment or trading plans, make sure to inquire about the information diligently by carrying out your very own research. Thank you.