Five traits of successful crypto projects
If you believe you have the Next Big Idea within the crypto sphere, it is tempting to immediately set up a crypto project. But what are the traits that will make your project a success? And what are the pitfalls to avoid? We asked a few experienced crypto experts, who have coached start-ups for years. Here is what they had to say:
A diverse, multidisciplinary team
What makes a good project great? The team members. The ideal crypto team consists of a diverse group of people with lots of different backgrounds. The team members should have a lot of different specialties as well. Bringing in people who have different views means that your project will benefit from a melting pot of fresh ideas. This will improve the creativity of your team and boost its capacity for innovation. A study found that organisations with more diverse management teams have 19% higher revenues due to innovation.
Furthermore, team members with diverse backgrounds bring diverse solutions to the table. This leads to a more informed decision-making process and better results. Diverse teams are able to solve problems faster than teams of cognitively similar people. So when you handpick your people, make sure you create a team with a plethora of different backgrounds, specialties and problem-solving strategies.
A market-proof business case
We all know that the crypto markets are notoriously volatile. This means that you do not want a business case where the profits are entirely dependent on positive market developments. Ideally, your product or service should be able to provide value and generate profit independently of the current crypto prices. This way, your project has a shot at a future, even if the crypto markets crash or stabilize.
A great product
This might sound simple, but that doesn’t mean it isn’t true. A great crypto project won’t go anywhere without a great product or service. But what makes a product great? Let’s take a look at some of the characteristics of successful products.
First of all, ask yourself: is my product easy to use? This doesn’t necessarily mean that it is a simple product. Easy to use in this context means ‘just as complex as it needs to be, at any given time’. If you have a complicated product, make sure to layer the complexity well. Make the basics easy for regular users and enable the power users to easily access the complex features.
The next trait of a great product is scalability. For a product to be viable, it must generate more value per user than its cost per user. A perfect scalability scenario is be a product that has the same cost regardless of the number of users that it serves, for example Slack and Instagram. Their added cost per user is next to zero.
Lastly, the final building block of a great product is the creation of virtuous circles.
A virtuous cycle is anything that will make the product more valuable or its disappearance more painful, the more someone uses it. Think about how annoying it would be if Spotify lost its learned information about your music taste, or if your digital calendar crashed and all your appointments disappeared. If your product creates a virtuous circle, it has attained the holy grail of customer retention.
Product market fit
Let’s say that you are convinced you have a great product. But is there a demand for it? Product market fit is the foundation of any successful product: if it doesn’t solve a problem for an end user, everything else is redundant. No one would ever buy a tool to do something they don’t need to do. Every product must meet and solve a need.
Imagine if no one wanted to get from A to B or learn a language. Then Uber and Duolingo would still be great products in theory, but they wouldn’t survive. User needs are fluid, luckily, so there will always be room for new products. Ask yourself: does my product solve a new need? Or does it offer a better way to solve an existing need? This is absolutely essential.
Funding
Last but not least: the importance of funding. Financial support is essential for new crypto projects. Too often, we see promising crypto projects fail, simply because they run out of money. Luckily, there is a solution: the Treasury Management Service of Gain DAO (TMS). TMS provides a cash management service for crypto projects. Our goal is to increase your cash flow and maintain a conservative risk profile.
How does this work, exactly? Gain DAO is a bridge between centralized and decentralized financial systems. We leverage the strengths of both to create something new. We call this Hybrid Finance or simply HyFi. The Gain DAO ecosystem offers several machine learning derived trading algorithmic systems. These algorithms mainly work in the traditional financial market. This strategy ensures superior infrastructure, liquidity, risk management and modeling of trading strategies compared to the crypto-to-crypto markets. Thanks to our unique hybrid architecture, we can combine the benefits of the traditional market with the advantage of preserving the underlying asset as a cryptocurrency.
We believe that ambitious projects don’t fail because they run out of ideas. These projects fail because they run out of money. Shifting markets, unexpected spending, a black swan event… It’s clear that new and ambitious projects constantly risk running out of money. At Gain DAO we want to increase your cash flow sustainably and consistently, so that your ideas have the opportunity to blossom. Your project can increase its cash flow by using the same technology that Gain DAO uses to power its own Pools. We use quality supplier technologies to keep your treasure trove consistently growing.
If you are convinced of the value we can offer to your project, we have some good news. Gain Treasury Management Services is proud to offer an inaugural Charter Client Offer to the first fifty clients. Interested to learn more about these benefits? Ready to grow your cash flow? To learn more about Gain DAO and how we are pioneering HyFi, visit the links below and join our community on Telegram or Discord.
