The Altcoin Evolution – Part IV: The Challenges – The Sales Pitch
August 27 2021 - 8:42PM
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With the ever-changing landscape of tech development and crypto
innovation, regulation tends to lag behind in order to have time to
react to what’s happening. Many altcoin projects are currently
growing exponentially as they are exploring largely untouched use
cases. As the tech continues to proliferate and expand, more and
more “problems” are arising that require solutions.
This obviously provides more space for viable contenders to occupy
in a crowded market. This provides a robust growth argument for
many altcoins, but there is a catch. The giant growth gains are
fantastic, but we also must consider that large corporate banks do
not tend to react positively to any challenges to their dominance
of the financial industry. The Federal Reserve and other federal
government bodies certainly have an eye open to the chaos as well.
Ripple (XRP) is a prime example of this, as the project has been
experiencing ongoing back-and-forth dialogue with the SEC for some
time now, all while still sitting in the top 10 of token market
caps. The Altcoin Evolution: The Lay Of The Land At this point,
it’s rather difficult to predict the trajectory of these
contingencies. Regulation is always a few steps behind, but it is a
certainty. Despite these hurdles, which are far-reaching and
constantly evolving, every project must have growth objectives. As
we have with past publications of “Altcoin Evolution”, we will
continue to look at the emergence of projects impacting creators,
such as those involving NFTs, as prime examples of how difficult
these challenges can be for altcoins. In our last two
“Altcoin Evolution” articles, we took a bird’s eye view on the
challenges, implications, and importance of factors like use case
and accessibility. Now, we’ll take a high level look at the
importance of altcoins having a sales pitch. In a world where
constraints around marketing and visibility are ever-present,
leveraging the aforementioned use case and accessibility assets for
projects is vital in “selling” how respective projects stand out.
Polygon has been leveraging it's versatility and low gas fees as
major selling points in the DeFi market. | Source: MATIC-USD on
TradingView.com Related Reading | Cardano Founder Responds To
Criticism Over New Crypto Partnership Setting The Stage As
mentioned in the previous iteration of “Altcoin Evolution”, the
brass at OnlyFans attempted to rebrand themselves as a
non-pornographic site, in order to further align themselves with
the values of banks that do business with them. At the time of
writing, there has been such a huge backlash that the company has
been forced to rescind the proposed changes, after receiving
assurances that the banks will “support all genres of
creators”. This whirlwind news story is a perfect
example of how unique digital currencies can instantly have a
utility from where there was none. What projects can take advantage
of these opportunities, and have the ‘stickiness’ of a sales pitch
that can resonate with crypto consumers? 2021 has been a
booming year for altcoins. At the beginning of the year, bitcoin
made up about 70% of the crypto market. By July, that number was
down to about 48%, according to TradingView. There are over 10,000
altcoins all vying for a slice of this growing market.
Whether a project is a meme token, a DeFi utilization tool, or an
NFT platform, one thing remains constant: increasing accessibility
and informing consumers about ubiquitous project utilization will
be paramount in selling a project to potential investors or users.
Break Down The Buckets We see altcoins best sales pitches carrying
typically one (or sometimes multiple) numbers of these buckets:
Partnerships & IP: Most often utilized in NFT projects but also
running the gambit in crypto, partners or IP of value can make
crypto projects special and unique – all the project has to do is
utilize them appropriately. Loud advocates (see: Elon Musk and
Dogecoin) in this case fall into the ‘partners’ bucket, despite
often being informal ones. Aggressive Interest Rates Or
Rewards: Airdrops are often a hot topic in crypto, and aggressive
interest rates from DeFi and CeFi lending platforms have built
massive firms in short time with companies like BlockFi and
Celsius. Rewarding platform users sustainably is a sales asset that
is tough to top. Crypto consumers are increasingly savvy on what
means of rewards are sustainable and viable for long-term
engagement. Decentralization: Crypto’s core is decentralization, so
centralized platforms often get flak for this exact reason. Rarible
is an NFT platform that recently unveiled a model of increased
decentralization with mostly positive feedback. Versatility:
Polygon ($MATIC) has gained major ground in the DeFi landscape for
it’s scalability and adaptability. Low Cost: At the end of
the day, the cost can be king. Many users have flocked to low-cost
tokens simply for the ability to buy a cheaper token, and
additional price factors (such as gas fees) often get factored into
the equation by more savvy veterans. These are the
major buckets that crypto projects can lean on to spread word with
consumers. How they go about spreading that word has often boiled
down to building community – which is why Discord and Telegram have
become so prominent for crypto users. That wraps up
“Altcoin Evolution” with regards to challenges for emerging
altcoins. In our final installment next week, we will wrap up the
series with a summarizing piece that recaps everything we’ve
covered so far, and answers the simple question… what should
altcoins be doing in today’s market? Thanks for stopping by
– we’ll see you next week. Related Reading | 60K ETH Exit
Exchanges, Here’s Why It’s Bullish For Ethereum Charts from
TradingView.com, Image courtesy Jerry Sena
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