Cryptocurrencies today are a big business. Their gained success is great investments for those who believed in them because of their tremendous growth in value. However, unlike the process used to create cryptocurrencies and blockchain technology, cryptocurrency communities are a different ball game altogether. When it comes to crypto projects, most people think that the underlying technology is the most important thing. Although this is typically true, the activities of the community that supports it will ultimately mean its success or downfall.
In a traditional company, the interests of the shareholders and the users of the product are not always in line. While the end-user is more focused on a great usable product, shareholders are usually more concerned with the business side of things. This includes the fair distribution of bonuses, sales numbers, and good leadership. In cryptocurrencies markets, however, are a bit different; the people who use the technology and the shareholders are the same. This means that the things that are important to them are more in the line of management, property right, and how the project is performing since these are the factors that determine success. As such, the success of a particular cryptocurrency is primarily determined by how big and active the community is. For instance, Bitcoin has a market capitalization of $100 billion as compared to others in the range of $10 billion. This difference is mainly brought about by the size and activity of the Bitcoin community, thus making it very attractive to investors.
Although there is no single route to success in creating crypto communities, here are a few that work very well:
Transparency and honesty
For any community to work, there must be a sense of trust and respect between people. The same goes for a cryptocurrency community. The founders should always be open to dialogue, take the user’s interests seriously, and generally treat everyone with respect. By doing that, you create a better atmosphere where people can share ideas and opinions confidently.
A proper distribution system and clear property rights
Since crypto is an asset, there should always be clear rules and channels that cover ownership and distribution. A strong community is often comprised of people who share common views but also treat those with divergent ones with respect. As such, an open system ensures that everything stays above board.
A whitepaper is essentially a big document reviewed by potential investors. This document basically explains to the investor about the project, the problem, how it solves it, some technical aspects of the project, legal issues, financial models, and so much more. The whitepaper is everything you need to know about a particular blockchain project and, thereby, crucial tool investors use in determining a project’s viability and potential profitability.
Why you need a community for success
If a new cryptocurrency is to succeed, it definitely needs a community. With a community in place, creators of certain blockchain technologies can overcome limitations ingrained in typical social media. This includes customized designs for better experiences, deeper analytics, gamification, and single sign-on (SSO), which makes things a lot easier. As such, a community is useful for:
Modern clients need constant feedback on products and services out there. They also need to know about the company’s values and why a brand chooses a particular product or service over another.
Being able to put out words of a new product or service. When you have an active community, a new product or service will get a lot of publicity as various members of the community will share the news on their social networks, and so forth.
A strong community also communicates a sense of trust in the product or technology behind it. For instance, Bitcoin didn’t always have a big following but always had loyal ones. As such, even during hard times, they were able to bounce back. The success of marketing promotions can be affected by the status of the crypto community of a project. If the community is healthy, the success rate can be very high. But if not, the project will definitely fail.