Everyone’s had a bad taco or a particularly smelly piece of sushi before. The result of such an incident is a purge of the digestive tract. You all know the feeling. So what exactly does that have to do with anything? Well, one could compare the current crypto market to the purge after a bad taco. The market is currently getting rid of all the things that poison it in an effort to start fresh and clean. So if you’re a blockchain startup, how do you survive this “crypto winter” purge we’re all in now? There are a few key tricks. Let’s check them out.
BLOCKCHAIN STARTUPS NEED TO BE TRANSPARENT IN THE CRYPTO WINTER
Enough with the scams and the lies everyone. This isn’t 2016 anymore. You can not get rich off a fancy whitepaper and some false promises. That’s what caused the market to take off in an out of control fashion and eventually, burst. To survive the crypto winter, only true, honest and transparent startups will survive. 2018 was a record year for the closing of blockchain startups and there is a good reason for that. With regulations becoming a standard, useless “shit coins” and the fraudulent startups that create them cannot survive.
BLOCKCHAIN STARTUPS NEED TO BE CREATIVE IN THE CRYPTO WINTER
Back in the day, you could create an MVP, launch an ICO and watch the money flow in. But ICO’s aren’t what they used to be. In order to create a legal ICO, startups must go through all sort of legal obstacles and those, take money. But how do you pay the lawyers money if you don’t have money because you need that money from an ICO which costs money to make legal? Confused yet? You should be! Many startups are stuck in that confusing “catch 22” so they’ve been forced to seek other means of fundraising. Some have been successful but the majority, have not been.
BLOCKCHAIN STARTUPS NEED TO BE INNOVATION IN TEH CRYPTO WINTER
Without sounding too cheesy here, in the end, innovation is what truly makes your startup shine. Let’s use one startup as an example here. YouHodler, a crypto lending platform looked at an old problem and found a new solution for it. Things like 80% loan to value ratio, 7+ crypto collateral options and creative withdrawal/deposit methods are traits that no one else has in the industry. This startup is lending money to crypto enthusiasts and letting them keep their crypto investments in the process. Sure, other platforms are doing that but this one is unique in that way.
These are the types of platforms that will shine throughout 2019. Keep an eye out for them.
Cryptocurrency is something imperative and necessary.