CEO at NewCampus, a modern business school in Asia. Exploring the intersection between the future of work and learning with an Asian twist.
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As the Web3 blockchain market continues to experience inconstancywith the corresponding crypto market falling from over $2 trillion in early 2022 to about $800 billion by the end of the year, companies face the challenge of adjusting to a recession. For many, this can be a difficult and uncertain time. However, I also see it as an opportunity for leaders in Web3 to learn how to be more efficient and innovative.
With many companies struggling to stay afloat and more than 50,000 employees estimated to be laid off by technology companies by 2023, it is more important than ever for those in the Web3 space to learn how to do more with less. This means finding new and creative ways to cut costs, increase efficiency and increase sales. It also means looking for new opportunities to expand and diversify the offer.
As an active investor and advisor to this emerging industry, I am always looking for opportunities to help others. Here are some examples of how you can stay lean and innovate as a Web3 company.
Optimize and broaden
One strategy for Web3 companies to navigate a down market is to focus on maximizing efficiency.
Ray Chan and his team at 9GAG are no novices when it comes to streamlining operations and cutting unnecessary costs. The organization has discovered how to stretch capital and stay lean keeping the number of employees low, exploring viral marketing as a method of cost-effective marketing and working with grassroots communities to take their brand to the next level. Other leaders can achieve this by identifying areas where a company is overspending and making changes to reduce those costs.
Another strategy is to diversify income streams. Instead of relying on a single source of revenue, companies can explore different revenue models, such as consulting services or developing new products. Again with 9GAG as an example, despite a successful debut in Web3 with NFT collections, they are still actively looking for alternative possibilities, such as their exhibition cooperation with Times Square.
Collaboration and involvement
Web3 companies can also benefit from this build strong partnerships as a strategy to navigate a down market. Strategic partnerships can help companies reduce costs, share resources and access new markets. By partnering with other companies, you can leverage your partners’ strengths and resources to achieve more than you could alone.
For example, NBA Top Shot is a collaboration between the NBA and Dapper Labs, the makers of CryptoKitties. Within the first year of its launch, the platform acquired more than 1 million registered users and gained exclusive access to cached NBA basketball moments.
These types of partnerships can help increase visibility and build a stronger brand. One NFT project I’m familiar with for investing in it is Zipcy’s SuperNormal. I see them as a good example of using them high-profile partnerships and practice outreach by doing things like hosting day club events at Coachella or hosting live drawing events using Twitter to build brand awareness and credibility.
A collaborative mindset can be valuable in a down market where competition is fierce. Additionally, partnerships can also help establish companies as major players in a particular space by aligning them with other well-established and established brands.
Web3 companies can also leverage the power of community as a strategy to navigate a difficult economic environment. Building a strong community can drive adoption, generate buzz, and create loyal customers. By fostering a sense of belonging and involvement among their community members, companies can create a sense of loyalty and advocacy among their customers.
One way for Web3 companies to build a strong community is to engage with their customers and promote open communication through channels such as Discord and social media where people can provide feedback and ask questions. You can also organize events such as meetups or webinars.
Innovation comes from adversity
One way for Web3 companies to innovate is to keep abreast of the latest trends and developments in the industry. By staying abreast of the latest technologies and market changes, you can identify new opportunities and develop products and services that respond to the changing needs of your customers.
For example, Binance introduced Binance Launchpad in 2019 after seeing startups need the trend of Initial Coin Offerings (ICOs) and gain access to a large pool of potential investors. They started at a time when the ICO landscape was still fragmented and lacked a centralized trusted partner.
As another example, the Singapore-based NFT gaming project, Avium, which I invest in, launched earlier this year to bring esports to the Web3 space. They were able to launch their platform without an initial capital raise. With the investment landscape bearing bearish sentiment and the post-FTX downfall, it’s important that new projects show value early on.
As a final example: START Inc. is an emerging Web3 project aimed at the Japanese and Philippine market that I follow. One of their main strategies is molding partnerships with big companies, celebrities and government organizations. The project is looking for ways to bring together different blockchain technologies with popular anime projects from around the world.
By being creative, building strong relationships and thinking outside the box, Web3 companies can find opportunities to hit the bear market with less capital and stay ahead of the competition.
Final thoughts
As markets related to blockchain technology continue to experience volatility, Web3 companies must learn how to adapt to a recession. By maximizing efficiency, diversifying revenue streams, building partnerships and leveraging community, Web3 companies can do more with less and continue to thrive in a tough economic environment.
Remember to stay optimistic and always ready for the next big opportunity. After all, the market is known for its fluctuations, but also for the large profits that can be made from it.
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