By Bobby Zagotta, US CEO and Global Chief Commercial Officer at Bitstamp
Markets may be down, but it’s important to remember that some of the most exciting innovations in crypto have taken hold during bear markets, from Bitcoin itself in the wake of the financial crisis to Ethereum by the way. by DeFi and NFTs.
At Bitstamp, we’ve been in business for over a decade and have been providing crypto solutions to leading fintech companies for over five years. It gave us insight into how leaders can best position themselves for the future.
Market volatility should not distract from the macroeconomic shift unfolding before our eyes: Interest in crypto is growing and companies that don’t prepare for the next growth cycle may not be able to respond. on future demand.
Crypto remains the best performing asset class of the past decade, and the pace of innovation within the Web3 industry continues to accelerate. NFTs, metaverse and crypto products have captured the attention of millions. As new use cases emerge every day and services become easier to use, adoption will soon take off again.
There is another factor at play here: trust in crypto continues to grow. A recent Bitstamp Crypto Pulse survey found that three-quarters of all respondents said they thought crypto would be mainstream in less than 10 years. Over 60% said they would buy groceries or shop online with crypto. On the institutional side, seven out of 10 investors said they believe crypto will overtake traditional investments in less than 10 years and actively recommend crypto to their clients.
There’s no vertical that blockchain technology won’t somehow penetrate, from gaming and entertainment to healthcare and finance. Now is the time to prepare for the next crypto growth cycle. If you’re a business owner, here are some ways to get started.
Start by understanding your customers’ crypto interests and needs. Does your business operate in sports, games or entertainment? If so, chances are your users already own NFTs or have at least heard of them. Are you running a fintech or payment startup? In this case, many of your users may have already tried crypto. Once you understand where your customers are, you can meet them there.
As you better understand your client’s needs, it’s time to start building your crypto capabilities. There are three main ways to do this: the first is to build your crypto stack in-house, the second by acquiring a crypto-native platform, and the third by partnering with an existing crypto platform.
The first option works if you have the knowledge, talent, and time to build, but it can be a long road. The second option is faster, but requires capital and a commitment to smoothly integrate two business models. The third way, partnering with an existing business, may be the most prudent. Companies that do this save themselves the headache of building something from scratch and can easily bridge the gap between their operations and Web3.
Some companies offer customizable “plug and play” options that help companies provide access to crypto products to their users, while allowing them to take ownership of the relationship with their users. Businesses can opt for a convenient omnibus model where they can bring their own licensing and KYC processes and simply take advantage of a wide range of APIs offered by crypto firms. Or they can opt for more convenient large-scale white label solutions that include KYC and the necessary licenses.
When looking for a crypto partner, it’s important to identify one with a proven track record, a strong compliance history, and a customer-centric approach. With the right partner, companies can continue to evolve their capabilities while mastering the customer relationship.
The final and perhaps most important step is to educate your teams and customers about the crypto products and services you provide. One of the biggest challenges to crypto trust and adoption has always been lack of education, so whether it’s an NFT collection, bitcoin payment integration, or a metaverse activation, you will need to make your customers aware. Integrate this with what you’ve learned about your users and find ways to educate them that feel organic to your existing strategy.
There is a great opportunity for leaders to educate their customers and help them navigate the new Web3 economy. A study found that 41% of Americans who haven’t bought crypto plan to do so in the next year, 52% of Americans would put crypto in their retirement accounts, and 62% would buy more crypto if they could. store it in a bank. Account. The number of crypto owners and investors in the United States reached 23% in 2021, up from 16% in 2020. Nearly a third of them used crypto to make payments.
If your business is waiting for the next growth cycle to start building your crypto offering, it will be far too late. Don’t underestimate the time and effort it takes to create safe, secure, and user-friendly products and services.
Those of us who have been in crypto for many years understand that this market, like any other, is cyclical. This means that when the markets are down, it’s time to build. This no longer only applies to crypto companies: all business leaders should prepare to meet the demands of the next Web3 boom. By understanding the needs of your audience, developing your capabilities, and educating your customers, you’ll be well positioned to capture value in the months and years to come.
About the Author
Bobby Zagotta is the US CEO and Global Chief Commercial Officer of Bitstamp, the oldest cryptocurrency exchange in the world. He previously held leadership positions at Kraken and CME Group. You can follow him on Twitter at @bobbyzagotta. He is based in Chicago.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.