The crypto sector is amid one of its most protracted and painful times for startup project founders. The current Crypto Winter coincides with central bank high interest rate policies in the US and other countries, negatively impacting the market cap of all capital markets as well as cryptocurrencies. The latter half of 2022 saw the fall of Celsius, FTX and other well-known crypto companies, with a massive loss of money, criminal proceedings, and a loss of investor and crypto industry confidence.

Today, the primary goal of many crypto founders is survival. We’d like to emphasize that you can adapt and emerge victorious in the end, even amid large-scale industry upheavals and limited resources- but you have to be smart. We will discuss some tips on what founders should be doing during Crypto Winter to take advantage of this stage of the market cycle in order to be fully prepared for leveraging in the coming Crypto Summer, whenever it arrives.

Competition will be waning- take advantage of it

The number of competitors in your specific product or service space is probably getting smaller.

Hundreds of crypto projects that have failed to prove their worth building users, revenue or having enough operating funds, are unable to hang on so are in the process of being sold or abandoned. The best blockchain companies with unique ideas, talented teams, and potentially valuable products, are left better positioned to attract users and the attention of investors also. Now is the time to go after a fallen competitor’s community to fulfill their need with your product or service.

Startups can more easily get through to investors

A project “house cleaning” with survival of the fittest has made it easier to connect with investors to get on their radar, even if their current project funding is on hold.

Venture capital firms and family offices are looking for the most promising investment opportunities, and are guided by the rule that the best projects will survive, but some of them just need a little help. Investors can be motivated by low valuations and down rounds for the most promising companies, and see that there are bargains to be had. They can be willing to help out a top project that needs a bit of help to get to the other side of Crypto Winter.

Nab the best team members during a time of layoffs

Crypto projects now have more opportunities to hire valuable employees and particularly top developers due to layoffs.

The liquidity crisis has resulted in layoffs hence capable employees with extensive experience are available and eager to join good projects. Often these employees can be hired on more economical terms with employment packages including tokens, shares etc. versus what they command during high-wage boom times.

Smart community and product building time

Engaging in lots of promotion of your services and products during the Crypto Winter when demand is waning is risky and costly. It’s time to reign in the big marketing spends on conference sponsorships and ads and figure out where you can drive ROI on your marketing dollars more cost-effectively.

This means that blockchain projects should concentrate on important stuff like building initial users and closely tracking their behavior, experiences, churn, and where the best traction comes from. You also want to focus on improving existing products and services as you use this customer data and feedback. Be smart and data-focused with your promotion and closely track how you attract new users with the least cost.

Make sure security stays a top priority

The failures of Terra/Luna and the FTX cryptocurrency exchange, as well as the increasing frequency of DEX bridge and platform hacks, have demonstrated that security is a critical requirement for users and potential investors alike. A crypto project should continue to be vigilant with efforts on the development and improvement of products and services and ensuring security. Don’t suffer an attack or beach that negatively impacts your brand image with users. You must persuade potential investors that there are no vulnerabilities as part of their due diligence for funding, which could come at a later time also. So don’t drop the ball on this and be stuck when you have a funding round pending and in jeopardy till audits are completed.

Vidma is ready to assist your company

Vidma is an Audit Firm with lots of experience and ready to assist your project by performing audits to ensure your code and products are secure. We can help in raising seed capital by providing a comprehensive product security review. Our specialists will carefully audit smart contracts and business processes, providing the appropriate audit certificate so potential investors can be confident in the prospects and value of your product and company. More information about security audits can be found in this article or by contacting our representative at vidma.io.

Vidma has created a one-of-a-kind Ongoing Code Review service as an alternative to a full security audit. It is optimally suited for the realities of the Crypto Winter and ideal for blockchain projects at the early stages, seeking long-term cooperation and better ROI regarding security from vulnerabilities at all stages of development. Read more on Ongoing Code Review service in this article or contact a representative through the vidma.io website.

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