3 Mistakes to Avoid for your Crypto Startup

Crypto startups are a dime a dozen these days. Everywhere you turn, a crypto project is trying to carve a place for themselves in the Web3 environment. While many crypto startups fail, others like Mintable become industry unicorns with high growth percentages. This, of course, is what every crypto startup founder seeks, but it rarely happens that way.

The reality is that 50% of crypto startups begin to close down within their first five years. And when we talk about turning a profit, less than 40% of startups manage to break even in their developing years. The peculiar Web3 ecosystems might change these values a bit, but the truth remains that the fight for survival is a common problem for all startups.

However, your chances of survival increase if you know what mistakes other failed startups made before you. To address this, I will be looking at three of the biggest mistakes crypto startups make. If you have a crypto startup or intend to launch one, this article is for you. Keep reading to see what you can do to ensure that your startup survives.

• Failure To Create a Community and Connect With Them

There’s a reason why the phrase “crypto community” sounds like a broken record to you. Every crypto ‘expert’ is advocating and playing up the importance of a crypto community, and that’s because they know what they are talking about. Building a crypto community is one of the best things you can do for your startup. A crypto community is one of the crucial elements of growth for every crypto startup, and if you know what power a community can have, you won’t make the mistake of not creating one from the beginning.

What is a crypto community, and why do you need one? A crypto community is a group of crypto enthusiasts who have the same likes and interests, and this time, that interest is your crypto product. Your crypto project needs a community because no startup can grow beyond its community’s reach. Community members promote the startup, spread the word on social media, and contribute to the final product.

Even knowing this, many startups still don’t consider it a priority to build a community, and many would fail because of this. As great as your idea might be, as needed as your product is, it needs to appeal to people for it to sell. That’s where your community-building comes in. Here’s a tip, a crypto community is more than opening a group on Telegram. It requires building a connection with your community. Crypto is a very customer-centric industry, so you need to gain the trust of your community members. The best time to build a crypto community is when you’ve just begun; the next best time is now. The first mistake to avoid is to put off building a community. Your startup’s growth is dependent on the community you build around it.

• Failure To Prioritise Marketing and Brand Building

Many crypto startups focus so much on the end product that they miss out on marketing. They usually end up regretting that decision. The success of a startup is half product and half marketing. How do you get people to know about your business and even consider buying it? You’ll need marketing sooner than later, and if you spend your funding on other things, you’ll have very little to spare on your marketing. This mistake can impact your product launch and the future growth of your company.

Branding is another thing startups fail to get. Many founders don’t think about branding because people associate the idea of having a brand with big companies. On the contrary, every business needs to establish a strong brand placement. Your brand is your story, and every startup has one. It’s also a strong selling point to investors. Having a brand sends the message that your startup is stable.

Having a brand gives your startup an edge over other market players, and if there is anything a startups needs, it’s a head start. So from the get-go, prioritize your marketing and branding efforts.

• Getting the Timing Wrong

For every startup, crypto or traditional, timing is critical. The wrong launch time for a great product can ruin the product’s marketability and cause heavy losses. There are too many examples of companies that have been victims of wrong timing for anybody not to consider it important. Timing goes both ways. Your product could be too early or too late. Neither of them is good. If it’s too early, it might go the same way Microsoft’s smartwatch went in 2004. And if it is too late, it will be like the Uber lookalikes in nearly every country struggling to fight for market share. Either way, you want to launch your product at the right time.

In the crypto industry, timing is even more important, especially now when a lot is going on in the industry. Most likely, you’ll have one big shot to introduce your product and get the attention of a lot of people. This doesn’t mean you can’t try again. Most startups have little funding, which severely limits their marketing budgets. So, one big shot is the best you’ll have. The only problem with timing your product is that the market is unpredictable, and you could launch your crypto product the same week Bitcoin takes a plunge. So, what can you do to reduce your chances of launching your product at the wrong time?

Paying attention to the following factors helps:

• Economy
• Competition
• Market Demand and Need
• Personal Resources

The state of the economy could serve as a boost to your product’s success or contribute to its failure. Therefore, you need to monitor it carefully. Market research is important to ensure your product solves a market-sensitive problem. Your competition can also make it difficult to launch your product successfully. Lastly, you aren’t ready yet if you need to dedicate more resources, money, and time to it.

Conclusion

Startups succeed and fail with surprising regularity, as every founder knows. Unfortunately, the ones that make it to unicorn status are few. However, we can have more startup success stories if more projects keep their heads down and do the right thing.

Ultimately, no one knows for sure how your startup would fare. But you can give your budding company a fighting chance by avoiding the aforementioned three mistakes that have caused many crypto startups in the past to take a rapid nosedive.