illustrations by StorysetI have been in the Web 3 space for more than half a decade, and in that time, I have seen dozens of projects and blockchains fail. These projects fail for the same reasons, and it is almost impossible to break away, as new projects coming into the space are making the same mistakes. I will explore some of these mistakes, and hopefully, this piece can help a prospective founder now or in the future.
FOUNDERS AND DEVELOPMENT
I will start by mentioning the major culprit in the demise of most Web 3 projects – the founders. This sounds counterintuitive because you would expect that the founders or developers behind a project have the most skin in the game, but that isn’t always the case. I have been in many spaces and conversations with founders, and they all seem to share the same sentiments when it comes to development.
Now, it is important that I address how difficult it is to develop a project and convince people to use it. So most founders tend to take shortcuts by riding the community/loyalty narrative. This often fails woefully because most of the people in the Web 3 space are after their ROI, and the best way to give any investor a decent return on their investment is by creating a good product and not a loyalty system.
In addition, there is the issue of man-management and experience. These founders often have brilliant ideas but lack the business acumen to execute their vision. They also surround themselves with inexperienced staff. This affects things like marketing, fundraising, and the day-to-day operations of the project.
TOKENOMICS
Tokenomics is a double-edged sword. It can make or break a project. Due to its complexities and demands, it often takes center stage in project development. In some cases, projects rely heavily on hype and their token. The project is often an afterthought. This is why you don't hear much about a project after its launch.
There are cases of a project having a good concept but poor tokenomics. Poor distribution often leads to centralization, which leaves the growth of the project in the hands of a few who may not necessarily want the best for the project or blockchain. This discourages new participants from contributing, leading to stagnation and eventually the death of the project or blockchain.
MARKETING
This is another area where Web 3 projects fail miserably, and it is often tied to the aforementioned issues. Most projects market their token, not their project. Last month, a project with the ticker $BLOCK was trending on X, and most people pushing the project knew nothing about the project or its product. They were shilling farming for airdrops.
Airdrops are another marketing gimmick most projects explore to create brand awareness. In most cases, this backfires by attracting grifters. However, some of these products do not mind because they have the same agenda, which is to exploit their community and leverage the exposure they gain from mindless shills.
CONCLUSION
Founders should focus on their product. Every other thing is secondary. Do not cheat your way towards getting an audience/users and not having a product or service that matches your newly found status. In other words, do not skip the development process.
Once you have a project that meets industry standards, then you push it with solid marketing. Identify your market, competition, and articulate your value proposition. Do not get caught in the cycle of redundancy as most projects do. Find your niche; engage in dialogue with your community and users, and resist the urge to overpromise.
These are my tips for (prospective) founders.
Posted Using InLeo Alpha