What is the Impact of Community Support for Blockchain / Cryptocurrency Projects?
The success or failure of cryptocurrency / blockchain projects depends on the size, strength, or commitment of community support. This is due to the inherent nature of the nascent space in which investors could also double up as users of a service or product offered by the project.
Unlike traditional companies that have to build a working product before the users come, the crypto space places special emphasis on the user, the core constituent that makes up a community. This is partly due to how the crypto space changed investing and crowdfunding models for new companies.
Traditional companies raise money from investors who may have or want little to do with the day-to-day running of the company. As for crypto, it is mostly supported by retail investors who have a direct interest in the success of the project. This requires them to pay special attention to the latest developments of the project, whether good or bad. In many cases, token holders are the fabric that holds the community together
The crypto space is known for failed projects as much as those that find runaway success. And community support is the epicenter of it all.
This leaves one question open: What is the impact of community support for blockchain/cryptocurrency projects?
Growth Challenges Faced by Crypto Projects
Several blockchain projects flourished in 2017 at the peak of the initial coin offering (ICO) boom. This was due to the engagement of the crypto community as a whole. A huge part of the success of the projects had little or nothing to do with superior technology, algorithms, or solutions to a problem.
There was only one open secret: community support and engagement.
Launching a blockchain project was as good as preaching to the choir. Retail investors were always on the lookout for the next project that used words that aligned with crypto or blockchain in its marketing content.
A few years later, the space has changed a bit. A number of factors such as increased oversight by regulatory bodies as well as exit scams have toned down the hype.
But beneath this change, the recipe for success is still made up of the same ingredients: community support and mass acceptance of a new project.
So why have cryptocurrency projects failed to grasp this or utilize this knowledge to the maximum?
A number of projects have underutilized the marketing resources at their disposal. Others have taken the traditional route where they build the product in the hope that the community will follow.
It has to be admitted that technology and novel solutions are important. However, these will only remain good projects on paper if they do not have a community behind them.
A good example is Bitcoin.
A Case for Bitcoin
Some will argue that Bitcoin is an outlier because of its first-mover advantage. At the same time, Bitcoin is the prime example of the importance of community support towards the success of a blockchain or cryptocurrency project.
The origins of bitcoin and its growth shed more light on the importance of communities.
Satoshi Nakamoto first announced Bitcoin on a mailing list. The mysterious Bitcoin creator built BitcoinTalk Forum, a community of like-minded people to grow and spread the word about bitcoin. With little to no media coverage, a group of individuals, armed with the idea that bitcoin is an important peer-to-peer (P2) payment system, grew the unknown cryptocurrency until it became what it is today.
The growth of Bitcoin also presented its potential demise. It has been forked at least 98 times but it is still standing, not because of superior technology, but because of community support and its subsequent network effect.
The success of Bitcoin can be summed by Metcalfe’s Law which focuses on network effects. A network is valuable if more people join it. This is also one of the major reasons behind the success of major social media platforms. Would Facebook be successful if it had only a handful of users?
If Bitcoin is the blueprint of success, why are projects failing to replicate the success of the leading cryptocurrency by market cap?
How Can New Projects Accelerate Their Growth?
Apart from other marketing techniques, crypto projects understand the importance of community support.
These projects are building their communities through airdrops, giveaways, and competitions.
This is a great way of growing a community but it does not always yield the desired results.
There are various reasons why airdrops alone are not the way to go. Airdrops are intended to bootstrap a project by distributing tokens to people who may have the best interest of the project at heart.
Unfortunately, there are plenty of airdrop hunters who receive the tokens, keep them in their wallets, and sell them for fiat at the first chance they get. If the airdrop holders sell the tokens in numbers, it could crash the price of the token.
Nothing much is done by airdrops to grow communities. The same can be said about giveaways and competitions.
The idea to grow communities to contribute towards the success of crypto projects is not misplaced, but needs to be harnessed with effective and out-of-the-box marketing methods to bear tangible fruits.
And this is where Coinfluence comes into the picture.
How Coinfluence Utilizes Community Support to Drive Success for Blockchain / Cryptocurrency Projects
The solution to the under-utilization of community support is Coinfluence, a crypto accelerator project that helps launch worthwhile projects in the blockchain space.
The premise of Coinfluence is to take exciting blockchain projects and put them on the pedestal of global recognition to gain mass acceptance.
To achieve this, Coinfluence taps into its pool of crypto-focused influencers chosen across several platforms such as Twitter, BitcoinTalk, Discord, YouTube, LinkedIn, Instagram, Tiktok, and more. The carefully chosen influencers introduce a blockchain project to mass audiences, and follow it up by playing an active role in growing the community.
Growing a community is not a passive activity. It is like nurturing plants. Coinfluence influencers nurture projects by actively engaging with the community, project leaders, and making sure that the project is adhering to its roadmap.
Coinfluence’s aggressive 30-day marketing campaign leaves new projects with a healthy and growing community of devoted followers.
Final Thoughts
The cryptocurrency space is evolving at a rapid rate but some things have not changed a lot. The importance of community support cannot be overstated and Coinfluence knows this.
The success of projects such as Dogecoin and ChainLink is largely dependent on the support of their loyal, vocal, and devoted communities.
Are you looking for such vibrant communities as Dogecoin and ChainLink? If yes, Coinfluence is the platform you are looking for. Sign up on Coinfluence and grow your crypto community.
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