❌Sketching the Problem
Last updated
Last updated
Most crypto projects follow this pattern:
A development-oriented team creates a Telegram, Discord, and Twitter page
Their social strategy prioritizes user growth over sharing quality content
They use influencers to promote their presale and sell out
The project fails to cultivate engaged community members
The community members sell their investment, and reinvest into the next big thing!
This cycle plays out because large social followings often mean access to more capital, access to high-value partners, and higher-quality exchange listings. However, short-term gains lead to two long-term costs.
Low Engagement
Low-quality campaigns like airdrops lead to a community full of low-engagement followers, not interactive members. Still, growing via other means (say, social media ads) is tricky due to challenges with compliance and high costs. Lower engaged users are also less likely to HODL the token.
Launchpad-induced Sell Pressure
When projects choose a launchpad, they submit themselves to a fundamentally flawed staking model that favors 'whales' holding the launchpad's token, rather than enabling the core community to invest in their project. The dynamic creates huge sell pressure, not a ground base of support.