Arweave TX
The crypto industry is becoming an increasingly competitive environment every year, so more and more companies are forced not only to adapt, but also to quickly look for new growth points. High competition and general market volatility force projects to think strategically, and this is where building a strong product ecosystem comes to the fore.
Having a well-established ecosystem not only allows projects to stand out from the crowd, but also creates stronger relationships with users, ensuring sustainability and scalability in the long run. But why is this so important for crypto companies today?
In the context of a business model, a crypto ecosystem is an integrated network of services that work in close interconnection. Its goal is to make the process of using, exchanging and managing digital assets as user-friendly as possible. The main components of such an ecosystem are usually centralised and decentralised exchanges (CEX, DEX), crypto wallets, payment solutions, native blockchains with tokens, decentralised applications (dApps) and a number of other products.
Each of these products organically interacts and complements each other, creating a functional and user-friendly ecosystem. For example, exchanges allow for the quick exchange of crypto assets, wallets for storing them, and payment solutions for making payments. All of this together forms an integral system where each component supports the others, making working with digital assets easier and more efficient for the user.
Why is it essential to build a full-fledged crypto ecosystem?
The ability to provide users with all the necessary tools and services within a single ecosystem. That is, users do not need third-party solutions or additional platforms to fulfil their needs, which significantly increases engagement and trust. In addition, having access to all the necessary tools, they are more likely to stay in the ecosystem, which has a positive impact on customer retention.
Scalability. If the ecosystem is built correctly, it can attract not only new users but also developers, investors, and partners, creating the basis for sustainable brand growth and increased market presence.
Expanding the pool of institutional products. Products for large businesses and investors integrated into such an ecosystem significantly expand its potential. Institutional investors are looking for reliable and secure crypto services, so ecosystems with such solutions are becoming attractive to them.
In the cryptocurrency industry, where every project is trying to stand out, having a full-fledged ecosystem is not just a feature, but an important competitive advantage. Most of the leading cryptocurrency exchanges have successfully applied this approach, creating not only a trading platform but also a whole network of products and services that support their growth and stability.
To better understand how this approach works, I have researched the ecosystems of the leading crypto exchanges and compiled my own ranking of those who have managed to successfully build them, making them a key factor in long-term success in the industry.
Binance is one of the largest crypto exchanges in the world and has created a powerful ecosystem that covers not only cryptocurrency trading but also a wide range of tools such as BNB Chain, Binance Labs & Launchpad, Binance Academy, Mining Pool and many others. A key element of this ecosystem is the platform’s own BNB token, which is used for commission discounts and integration with numerous services. Thanks to this, Binance has managed not only to strengthen user loyalty, but also to create a steady stream of active customers. The integration of various products on one platform allows users to have convenient access to all their cryptocurrency needs, while strengthening its position as a market leader.
WhiteBIT, the largest crypto exchange in Europe by traffic, is also actively working on the development of its ecosystem. The WhiteBIT Group covers such products as Whitepay, Whitechain, WhiteBIT Coin (WBT), White Market, WhitePool, WhiteSwap and PayUnicard. The WhiteBIT Coin has become an integral part of this ecosystem, providing discounts on fees and encouraging users to hold the token for the long term. As a result, WBT has seen rapid growth of 1600% in 2.5 years and reached a market capitalization of $5 billion, according to the CoinDesk ranking, where it was placed 22nd.
OKX keeps up with its competitors by building its ecosystem around a comprehensive trading platform. In addition to standard tools, OKX offers opportunities for derivatives, DeFi, NFTs, and training for beginners. An important part of the ecosystem is the OKB token, which provides users with discounts on commissions and additional privileges on the platform. This variety of products allows customers to find the best solutions for their needs and creates additional revenue channels for the company by integrating new projects into the ecosystem.
All three crypto exchanges are actively investing in the development of their ecosystems and strive to create the most convenient conditions for their users. However, their full development is impossible without mentioning the owners who set the strategic direction.
Binance was founded by Changpeng Zhao (CZ), who has long been the public face of the crypto exchange. After resigning as CEO, he stepped down from active participation, but still remains a shareholder. In particular, according to the latest Bloomberg Billionaires Index, his fortune is estimated at more than $27.5 billion. The current CEO is Richard Teng, whose net worth at the time of his appointment was about $20 million. However, given Binance’s virtual capitalization today, these figures can reach $200 billion.
As for WhiteBIT, Volodymyr Nosov, Founder and President of WhiteBIT Group, who in 6 years has scaled a local project to a global ecosystem known in many countries. Although there is no official data on his wealth, given the virtual capitalization of WhiteBIT, it can be assumed that Nosov’s net reaches about $27 billion.
OKX is owned by OK Group, which was founded by Star Xu. It is known that Xu owns a significant stake in the company, and as of 2021, according to Investing, his wealth was estimated at $1.4 billion. However, given OKX’s virtual capitalization today, his net worth can be valued at $35+ billion.
Creating an effective ecosystem requires a lot of effort and consideration of numerous factors: market conditions, audience needs, technical requirements, etc. Working with various companies, I have repeatedly faced the need to build strategies from scratch, both to create an ecosystem and to segment products in the B2B space. Therefore, I can identify several key steps that help to effectively integrate such solutions.
Establish communication with customers and involve them in the process of ecosystem development. Regular feedback will allow you to adjust your strategy and implement changes that meet the needs of your users.
Simplify the interaction between different products in the ecosystem. Ultimately, this will allow end users to get the most out of all system components, creating a seamless and convenient experience for them.
Improve the ecosystem. This means developing all products simultaneously, regularly implementing updates, and working to improve technologies.
Customer value. Their experience and benefits should be your top priority. This will help you build an ecosystem that will be popular with users and successful in the long run.
Today, the success of crypto projects depends not only on technology, but also on how well they can integrate various services into a single ecosystem. And it is this ability to create convenient, scalable and stable platforms that will determine the market leaders in the coming years.
Vlad Hryniv
