The Strategies for Successful Crypto Launches According to VCs
When bringing a new crypto to market, venture capital (VC) financing can be the fastest route. At the EthCC event in Paris, prominent VCs shared their insights on successful strategies for startups.
Main breakdown of key points:
- Ryan Barney from Pantera Capital advises founders to focus on selling to exclusive, affluent clients at the start rather than trying to scale too quickly. A well-designed and marketed airdrop, like Blur, can optimize user engagement and boost traction.
- Barney believes recent regulatory headwinds have made it impossible for institutions to participate in ICOs. He also highlights influencer marketing as problematic due to cases of shilling without disclosing conflicts of interest.
- Tony Cheng from Foresight Ventures disagrees and sees influencer marketing as crucial in crypto due to limited marketing options. However, he warns against excessive shilling, urging projects to align with KOLs that resonate with their user base.
- Cheng suggests that recent regulatory rulings should encourage founders to seek non-institutional token sales or ICOs to gain traction. He believes ICOs may become the primary fundraising method in the future, but cautions against going all in before regulatory clarity.
- Cheng believes the positive ruling on retail sales, like in the Ripple case, could be applied to other fundraising mechanisms such as initial DEX offerings and initial farm offerings.
Hot Take: While some VCs believe influencer marketing and ICOs are problematic, others see their importance in driving user adoption. Finding a balance between exclusive clientele, user engagement, and regulatory compliance will be key to successful crypto launches.
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