Table of Contents
- What Is a Crypto Startup?
- Benefits of Crypto Startups
- How to Launch a Crypto Startup?
- What Problem Do You Want to Solve?
- Build Your Team
- Build Your Whitepaper
- Promote Your Project
- In Conclusion
It is no news that crypto is evolving in a surprising way. And while it may seem a little overwhelming, considering the whole topic is pretty recent, it may be the way to go.
Crypto is revolutionizing many industries and solving several problems people usually face. But how exactly does it do that? Well, one good example of problem-solving projects is called crypto startups, and it seems they are becoming increasingly popular.
Thus, what is a crypto startup, and how can you launch one?
What Is a Crypto Startup?
Crypto (or blockchain) startups are blockchain-based companies that aim to build a new ecosystem for users. Through the new ecosystems they create, crypto startups plan to bring something new and revolutionize the industry in some way.
For instance, many blockchain startups aim to solve the Blockchain Trilemma. Also called the Scalability Trilemma, this concept states that a blockchain cannot simultaneously achieve scalability, security, and decentralization at the same level. This problem was made popular by Ethereum co-founder Vitalik Buterin, who said that a blockchain can have only 2 of the 3 main elements desirable in every such project, but never all of them.
These days, plenty of crypto startups aim to solve the Scalability Trilemma, and even though they realize that it is nearly impossible to solve it completely at the moment, they still manage to contribute significantly to finally solving it.
Benefits of Crypto Startups
Blockchain startups come with significant benefits, which is probably why many developers decide to launch one.
First, crypto startup developers can enter an industry that is still young and has a lot to offer to those curious to explore it. For instance, they can enter an untapped market that needs improvements. And entering a niche market can only come with advantages, especially when that field needs the help of blockchain technology.
Then, it is worth noting that the crypto industry is still not heavily regulated by governments. This means that developers still have the chance to enter the market while there are no regulatory frameworks in place yet.
How to Launch a Crypto Startup?
Usually, launching a crypto startup implies some basic steps that all developers should follow. However, remember that the whole process strongly depends on the type of startup you want to develop.
What Problem Do You Want to Solve?
The first and one of the most important steps is to identify the problem you want to solve through your crypto startup. Always remember that your goal will fuel you and the whole team behind you to keep on improving the project and yourselves.
Thus, you should choose a solid goal while also making sure that the problem you tackle through the startup is solvable and allows you to develop a detailed plan and set realistic objectives.
Build Your Team
As a crypto startup developer, you should choose your team carefully to ensure that each team member can significantly help the company. Blockchain startups are all about innovation, well-set objectives, and good timing. And when you choose the team members to mirror the company’s goals, the success rate might increase exponentially.
Furthermore, try to explain your idea in the most descriptive and practical way. This can highly help team members to picture how exactly they can help in the process of launching the crypto startup.
Build Your Whitepaper
After deciding on the problem your blockchain startup will solve, it is time to write its whitepaper. A crypto whitepaper should mention the critical details about the company, such as its mission and values, the team behind the project, the project’s roadmap, the problem it solves, funding methods, and the main contact details.
You should carefully shape the project’s whitepaper, as many crypto enthusiasts and investors usually check whitepapers while researching a crypto company. Try to be transparent and describe in detail how you will solve the problem you chose and how users can help you.
And if you are wondering why the whitepaper is important, remember that it will also help you significantly with the next step of the startup launching process - fundraising.
A new crypto project needs some funds to become stable. And as a blockchain startup, you have some fundraising options you can consider.
For instance, you may find it suitable to organize an initial offering. At the moment, some of the most popular initial offerings are ICOs (Initial Coin Offerings), IEOs (Initial Exchange offerings), and IDOs (Initial DEx Offerings).
Another great option to raise funds for your project is to look for a company specializing in decentralized and transparent fundraising activities for crypto startups. Such companies ensure that the projects they take care of have a lowered chance of failure and offer increased protection for the crypto startups.
Promote Your Project
One of the last steps implies making your startup popular among crypto enthusiasts. Try to find the most useful platforms for your industry and focus on delivering a clear and transparent message.
It is also critical to have a well-developed crypto marketing strategy, as it will help you plan your advertising activities and delegate various tasks to your team.
Crypto startups are blockchain-based companies that aim to solve a problem in the crypto industry and not only. Through the ecosystems they create, blockchain startups aim to deliver decentralization, scalability, and security for those in need of the 3 elements.
To launch a crypto startup, you should follow 5 main steps:
- Identifying the problem you want to solve;
- Building your team and the project’s whitepaper;
- Raising funds for the startup;
Promoting it to gain popularity among interested users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.