Launching in a Bear Market: Can Web3 Projects Thrive?
I vividly recall a conversation from last year when my former boss predicted, “The bear market should improve by the second half of 2023.” Yet, as we’ve reached October 2023, has the market shifted its direction? Indeed, it has. But where to? It’s sunk even deeper.
Recent global events, compounded by the misinformation incident from Cointelegraph, have further strained an already beleaguered market, resulting in a staggering $190 million liquidation within seconds. Concurrently, it’s evident that the industry’s growth has decelerated in 2023. Many projects remain silent in the market, and some that have launched, like the 2000 Migu NFT blind boxes, struggled to sell out in five days.
However, some projects have managed to swim against the tide. For instance, the Linea Entertainment Festival, which I spearheaded as the Promotion Lead, garnered an impressive 11M traffic and over 10K new users. (A little self-promotion here: I’m currently job hunting, so if you’re looking for someone skilled in PR/Branding, ping me at @MOIRISeth). Another notable mention is Celestia recent airdrop, which saw over 190,000 participants, standing out as one of the few shining achievements in this deep bear market.
So, should projects launch in such a bearish phase? It might hinge on three factors:
- Do you have a compelling brand?
- Do you have substantial funding?
- Do you have a robust user base? Looking at successful products launched during bear markets, whether it’s Arb, Base, Linea, or Scroll, they typically satisfy at least one of the above criteria. Moreover, they’ve laid a solid brand foundation well before their launch, consistently promoting their brand for over six months, leveraging their backgrounds, funding, or subtle marketing tactics.
This proactive approach allows them to accumulate a user base early on. And when many projects struggle to establish their brand during a bear market, these projects can make a splash by launching. Imagine the impact when a well-known project suddenly launches during a time when most are hesitant. The promotional effect isn’t merely additive; it’s exponential.
I’ve always believed that brand-building should start early rather than late and should be a core consideration for all projects from the outset. However, the bear market poses a dilemma: How should one build their brand during such times?
Some projects, considering budget constraints, opt to cut their branding departments to reduce costs during bear markets — a move I don’t endorse. On one hand, hiring during a bull market means new hires might not understand the product and can’t quickly adapt to branding roles. On the other, inter-departmental collaboration is a challenge for many projects, and team alignment takes time. Here are some pointers to consider:
- Sharpen your tools during the bear market.
- Retain a lean core team.
- Quantity leads to quality.
- Prioritize free promotions.
To elaborate, a bear market, while challenging, presents opportunities. Projects can streamline their teams to core members, retaining 1–2 individuals for each critical function. This period can be used for team alignment and skill enhancement. In terms of branding, projects can leverage free promotional strategies during bear markets to capture user attention, establishing a “known” presence, which can then transition to a qualitative shift during bull markets.
The above are merely my personal insights, intended for projects to ponder. However, strategies should always be tailored to specific projects and circumstances.
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Telegram: @MOIRISeth
Twitter: @IRISMO1993
Email: moiris1993@gmail.com
