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6 tips for launching a blockchain startup • TechCrunch

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Recently, blockchain Startup founders should expect to navigate challenging waters. Even in the best of times, founders need to prepare for bull markets and prepare for potential bearish areas.

Having a solid roadmap, real-world use cases, and a war chest are just some of the survival strategies for blockchain startups. The founders also note that while non-cryptocurrency startups can offer useful and transferable launch strategies, the road to achieving success in the blockchain industry is paved differently. is needed.

Here are some tips every blockchain founder should consider before launching.

Keep market conditions in mind

For blockchain companies looking to launch, a bear market looks more attractive. But before gearing up for winter, founders should assess whether it’s worth waiting until market conditions improve to launch.

In the web3 world of horizontal technology, waiting to build relationships until you build the technology is a headwind.

Evaluate startups by the same criteria that investors use during bear markets. Investors want to see a strong roadmap with deadlines and benchmarks. This is to let investors know that a slow lag pull is underway.

Evidence of the diverse war capital that can be drawn from is crucial, especially when providing returns on locked assets is the primary driver for achieving liquidity. In addition, analyze the market situation from a technical point of view. A bear market is an attractive time to launch, but it’s also a time to put your head down and focus on building your product.

Leverage reward programs for loyal community members by offering staking rewards, airdrops and giveaways, regardless of market conditions, just like in the traditional business world, without the need to raise additional capital. please.

Choose a longer vesting schedule

In the non-cryptocurrency startup scene, it is common to include compensation packages as an incentive for employees to perform well. Blockchain startups do this during the initial coin offering pre-sale using a method called vesting. This method locks and releases assets (usually in the form of tokens) for a period of time. In doing so, they entitle their teams, investors and advisors to certain assets such as retirement benefits and stock options.

If you choose this path, set a token metric and vesting period for the phased release of these tokens in a way that does not put undue pressure on the tokens themselves. Many cryptocurrency projects unlock and distribute their tokens every three months, but I’ve noticed that private investors are dumping their tokens on the market. This is bad for the team and community. Then retail investors also start selling ahead of time because they know the dump is coming.

Choose a longer vesting schedule (three to five years) to demonstrate that you have the financial incentive to continue project development. Split token releases: private sale investor tokens one month later, advisor tokens next month, team his tokens one month later. All done in his one month is too risky for individual investors.

Do not underestimate crypto regulation

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