Connect with us

Adoption

VCs come and go, but launchpads will remain a fundamental part of web3

Published

on



Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

When starting a business, a great idea is worthless if no one is available or willing to invest the funds to make it bloom. In the hi-tech world, where creativity and competition mold our future via non-stop innovation, venture capital and private equity firms are the oxygen this fast-paced industry runs on. 

While a good idea may get you in the door, securing essential funding requires demonstrating capable leadership, a reasonable product-market fit, and a concise business strategy. That being said, fundraising in “traditional” tech is fairly structured and predictable with a higher tolerance for the patient, long-term approach. 

Crypto and web3 projects, on the other hand, view and conduct fundraising differently. Historically, some crypto and blockchain projects have attracted traditional Silicon Valley VCs like Andreessen Horowitz and Sequoia Capital to invest directly in exchange for equity or tokens. Many of these top VC firms have established subsidiary funds focused specifically on promising crypto and blockchain projects. 

However, VC investment tends to rise and fall in correlation with Bitcoin (BTC) and the broader crypto market. For example, VC investment in crypto hit an all-time high of nearly $12 billion in Q1 of 2022, following Bitcoin’s previous record-high price of $69,000 in November 2021. In fact, total VC funds raised in 2023 failed to eclipse 2022’s Q1, as the down market sent VCs running. 

Crypto’s bear market, defined by exchange collapses, hacks, and scams, coincided with the meteoric rise of AI. This further diverted VC attention away from web3 developments, even as the industry matured and started attracting more attention from traditional institutions. 

The blockchain industry has mostly been receptive to tech VC investment despite their stringent centralized operations and reluctance to invest during volatile periods. Due to crypto’s inherent volatility, inconsistent VC participation, lessons learned from the shady ICO era of 2017, and the industry’s hyper-competitive nature, IDO platforms emerged as an alternative funding route for early-stage projects. 

Launchpads became popular during the previous bull run as they provided a decentralized outlet for crypto communities to access a wide array of projects, letting them decide which ones are worthy of an investment. Driven by retail investors and growing crypto communities, launchpads like DAO Maker and Polkastarter supplied projects with valuable resources because they reflected the industry’s values while providing tools for projects and investors—including institutional players. 

As the industry weathered rough market conditions, causing token prices to freefall and projects to shut down, IDO platforms evolved with crypto. Multichain launchpads like ChainGPT and Seedify are now becoming the standard, enabling more projects to take part. 

Since regulatory scrutiny has thrown the industry a curveball, many launchpads have taken crucial steps to ensure they comply with any regional laws, including processes to protect investors. Launchpads are also transcending, simply providing a platform to help projects sell tokens. They are playing a more hands-on role with the projects they onboard, resembling incubators and accelerators common in mainstream tech. 

For example, Gems, a newly established launchpad, connects projects with its exclusive network of influential investors for post-launch support to accelerate growth. The platform boasts 4,000 investment “Leaders,” who gain exclusive access to thoroughly vetted projects while enabling a growing user community to also invest in high-potential startups. By carefully balancing the needs of investors and projects, Gems raised a combined $198 million for its first three project launches.   

Crypto developments are occurring at rapid rates, reshaping the industry before our eyes. Avenues for funding in this dynamic industry will likely continue to evolve as the industry matures, absorbs more users, and further penetrates traditional finance. Regardless, IDO launchpads will remain an invaluable infrastructure component, adapting innovative approaches to serving the industry while fostering communities and facilitating growth.



Source link

Adoption

Crypto wins the vote in the 2024 US elections

Published

on


Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

The 2024 US election campaigns have been a masterclass in how to compel a large group of people to elect their country’s leaders. In a short time, we’ve seen sentiments shift after each candidate began their campaign trails and made promises to voters surrounding issues such as immigration, cost of living, and reproductive rights.

From spreading memes about migrants eating cats and dogs and the humorous “coconut tree” remark to the decisive role of lobbying regulators, the similarities between pushing political messaging and crypto narratives are difficult to ignore. 

Crypto is no stranger to compelling messages. One of the most memorable phrases in crypto history, “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks,” contained in Bitcoin’s (BTC) genesis block, is a reminder of the powerful messaging that has helped propel the industry forward. For crypto to win the “people’s vote” again, the industry can learn from several foundational communication principles we observed in this year’s elections.

Tapping into the psyche of the masses with memes

The use of memes in political messaging this election cycle has helped candidates engage the voter base and shift their perceptions. 

In July, singer Charli XCX took to her almost 3.7 million followers on X to endorse Kamala Harris with a three-word X-post, “kamala IS brat.” Brat was an album launched by Charli XCX, with notable colors of neon lime green and black. The Harris campaign quickly adopted the theme into their campaign color scheme, resulting in the “Kamala is brat” meme exploding across the web and TikTok, introducing a new cultural reference that positively shaped discourse. This is particularly significant for young and new voters who are increasingly getting their news through social media, according to Pew Research.

Originating from evolutionary biology, memetics, the study of memes explores how ideas, behaviors, and cultural phenomena spread. The light-heartedness of the medium allows people to digest complex or unsettling political realities in a more approachable way, impacting voter attitudes at an emotional level​. 

Crypto has seen its successful application through memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF), which leverage meme culture to build communities and hype. Similar to political memes spreading ideology, memecoins spread economic narratives through humor and social media engagement. 

The overall industry needs to see a return to memes that captivate users broadly. Popular memes like ‘diamond hands,’ ‘WAGMI’ (we’re all gonna make it), and HODL (hold on for dear life) have in the past spread beliefs about crypto like wildfire. The industry needs to craft new memes and leverage new moments to maintain its relevance and resonate with broad audiences again.

The use of emotional and purpose-driven messaging

Political campaigns also provide examples of how emotionally resonant, purpose-driven language connects with supporters. 

Donald J. Trump’s campaign used many bold statements of purpose that studies show resonate with themes of strength and patriotism. Among the most popular is the campaign’s “Make America Great Again” (MAGA) message. His appeal is connected to the psychological readiness in the US culture for an antihero figure, who represents someone bold and unconstrained by typical political decorum and the willingness to challenge the status quo. This was symbolized in Trump’s call to “fight, fight, fight!” that spread following the assassination attempt in July.

The web3 parallel is the need to evoke purpose when speaking to end-users by bypassing complex jargon in favor of emotionally engaging language. Mert Mumtaz, CEO of Helius Labs, a key crypto opinion leader, uses direct and emotionally engaging messaging to resonate with crypto enthusiasts. His commentary, which centers around key trends and recent events, enhances his credibility as a key spokesperson for Solana (SOL) and blockchain tech broadly.

Similarly to how political campaigns use soundbites that reflect the core values of the voter, web3 projects and founders need to rely more on using memorable statements that create an emotional connection, creating greater buy-in from a wider audience. 

Lobbying to engage policymakers more seriously

Lobbying played a notable role in this year’s elections. The health of US citizens became an issue that rose in prominence when health lobbyist Calley Means reconnected Republican and independent presidential candidates Donald Trump and Robert F. Kennedy Jr. This played a part in RFK dropping out of the race to support Trump’s campaign, catalyzing the MAHA (Make America Healthy Again) movement and may make a difference in the final election outcome. 

The US crypto industry itself has experienced regulatory hostility towards companies after the FTX collapse. Since then, there has been a growing realization that the use of money in politics is simply the way the system operates. Lobbying is needed for the industry’s priorities to be heard in the halls of Congress. 

The last two years saw a major uptick in advocacy efforts for better US crypto policy. As of mid-October, crypto-focused super PACs (political action committees) had spent over $134 million to persuade voters to elect Congress members who support crypto. Just this week, the CEO of Coinbase, Brian Armstrong, announced the company was committing an additional $25 million to support the Fairshake PAC leading up to the 2026 midterms to elect pro-crypto candidates. 

A continuation of this strategy by US companies could lead to significant shifts in US policy and could see better reception of crypto by users locally, with a ripple effect globally. 

The 2024 US elections were littered with examples of masterful communication tactics that can be adopted by crypto projects. As the focus of the industry begins shifting from infrastructure development to the growth of consumer applications across various verticals, these strategies will be increasingly important in persuading users about why they should choose the products offered instead of the many other alternatives available to them. 

Debra Nita

Debra Nita

Debra Nita is the associate director and head of growth at YAP Global, a crypto-native PR firm. With over a decade of strategic communications and product marketing experience, Debra helps leading crypto and web3 projects gain publicity and build their reputation through top-tier media coverage, leadership, and narrative development. Her expertise includes layer-1 blockchains, rollups, decentralized finance, zero knowledge and cryptography, and stablecoins. Debra has also been a speaker and hackathon judge at leading crypto conferences, including ETHDenver, Mainnet in NYC, ETHToronto, and ETH Kuala Lumpur.



Source link

Continue Reading

Adoption

Algoz taps Wincent to streamline its fiat-to-crypto onboarding process

Published

on



Digital asset investment firm Algoz has announced a strategic collaboration with regulated market maker and top over-the-counter desk Wincent.

Algoz shared details of the new partnership via a press release sent to crypto.news on Oct. 30. This announcement follows Algoz’s recent collaboration with Standard Chartered-backed Zodia Custody.

According to the announcement, Algoz will leverage its partnership with Wincent to facilitate the onboarding of new investors. Through this collaboration, investors such as family offices seeking to enter the crypto market via Algoz will not need to convert fiat currencies to crypto beforehand, as is typical across many providers in the industry.

Wincent offers the solution to this hurdle. Algoz users can now invest using Tether (USDT) Bitcoin (BTC) and Ethereum (ETH) and other cryptocurrencies using U.S. dollars, euros, or other fiat currencies. The partnership allows Algoz clients to directly swap fiat for crypto, reducing risks associated with exposure to unregulated providers.

Algoz noted that its collaboration with Wincent supports asset conversion based on already approved know-your-customer and anti-money laundering checks. These regulatory requirements are critical components of global crypto regulation, with various industry players viewing them as essential to the growth of the crypto market.

With regulatory clarity pivotal to the industry, many players are implementing measures to ensure safe on- and off-ramping of customers. Regulated platforms like Wincent and institutional-backed providers like Zodia Custody contribute to this approach.

The platform’s off-exchange settlement solution, Quant Pro, plays a central role in the partnership.

For Algoz, the solution, Zodia’s custody wallet, and Wincent’s know-your-customer and anti-money laundering integration add a layer of protection for users.

 “The creation of Quant Pro, our off-exchange settlement system, using Zodia was the first breakthrough for investors as we were able to significantly mitigate exchange and management counterparty risk.”

Stephen Wundke, director of strategy and revenue at Algoz.

Wincent’s regulated market records between $3 and $5 billion in daily volume, with over 300,000 daily transactions.



Source link

Continue Reading

Adoption

Saylor voices Bitcoin self-custody support amid backlash

Published

on



Bitcoin maximalist Michael Saylor believes Bitcoin’s ecosystem should welcome everyone and every type of custodial option available.

Cryptocurrency community leaders and members criticized MicroStrategy executive chairman Michael Saylor for comments that seemingly criticized users who self-custody Bitcoin (BTC). Saylor suggested that so-called “crypto-anarchists” solely advocating against institutional safekeeping of digital assets were counterintuitive to Bitcoin’s regulatory security and mass adoption.

The comments attracted scrutiny from Bitcoin proponents like ShapeShift founder Erik Voorhees and crypto developers like Ethereum’s Vitalik Buterin. Buterin, in particular, found Saylor’s comments on custody to be “bat shit insane.”

Without publicly addressing any individual backlash, Saylor’s Oct. 23 post expressed support for the right to choose how assets like Bitcoin should be kept. The post advocated for considering and accepting all available options for BTC custody based on personal preference.

Self-custody has long been a prevailing concept in crypto circles since blockchain’s inception. The entire industry was built on declining trust in legacy institutions and a shift towards separating money from the state.

Fifteen years after Bitcoin’s launch, developments like spot BTC ETFs have ushered in a new era of holding Bitcoin. While many agree that ETFs have encouraged global adoption, calls for self-custody of Bitcoin have never faded away. 

If anything, the conversation around individual custody of assets like BTC has only increased in 2024. Maxis, a term describing believers of a single blockchain asset, relentlessly argue that decentralized crypto storage remains users’ best defense against censorship and centralized failure points.





Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon