For early-stage Web3 startups, runway rarely disappears because the market is impossible. More often, it leaks through avoidable decisions: duplicated engineering, premature infrastructure scaling, CAC without retention, rigid payroll, and teams paying enterprise pricing for tools they could access almost for free.

This is especially dangerous in crypto cycles, where volatility compresses fundraising windows and turns every month of extra runway into strategic optionality.

The strongest founders treat cost optimization as part of product strategy. They design an operating system where every dollar compounds into better protocol resilience, higher retention, or stronger fundraising leverage.

Here is how experienced Web3 teams reduce burn rate without slowing down execution.

1. Optimize Development and Infrastructure Before You Scale Costs

Technical development remains the single biggest cost centre for most Web3 startups, but a few architecture decisions can also create disproportionate runway savings.

The first principle is simple: never build what already exists in battle-tested form.

For smart contracts, using proven libraries like OpenZeppelin often cuts engineering and future audit scope by 30% to 60% compared with custom implementations. The same applies to chain infrastructure and app logic: Substrate, wallet SDKs, account abstraction kits, cross-chain messaging layers, and identity frameworks remove weeks of engineering work that would otherwise go into rebuilding non-differentiating primitives.

The real savings are not only salary costs. Reusing trusted frameworks also reduces:

• regression risk 

• upgrade complexity 

• audit surface area 

• post-launch maintenance overhead 

The second lever is MVP discipline.

Even strong technical teams often overbuild before validating the first economic loop. A lean validation MVP built with AI-native builders like Lovable or Bolt.new, combined with wallet auth and minimal on-chain logic, can usually be shipped for $3,500 to $4,500 over three months.

That is dramatically cheaper than a standard outsourced Web3 MVP, which typically starts at $20,000 to $55,000. At the same time, more advanced products with custom indexers, bridge logic, or token systems can exceed $110,000 before user validation.

The practical rule is straightforward: validate the first economic loop before expanding protocol surface area.

Infrastructure choices matter just as much.

Deploying on Layer 2 environments such as Arbitrum, Optimism, or zkSync sharply reduces gas-related operating costs and improves first-action UX. The same logic applies to node strategy: using light nodes or managed RPC providers like Alchemy, Infura, or dRPC is significantly cheaper than maintaining full nodes in-house until transaction volume justifies it.

Security should follow a staged cost model too.

Before commissioning expensive manual audits, mature teams first narrow the risk surface with Slither, MythX, Echidna, and static analyzers. This catches obvious vulnerabilities early and often reduces the price of the final human audit.

Another overlooked multiplier is the discovery phase, not as a research exercise, but as a cost filter before sprint planning. Pressure-testing architecture assumptions, user flows, tokenomics edge cases, and milestone logic early can reduce downstream development waste by up to 50%, mostly by preventing rewrites and infra migrations.

2. Strategic Marketing: Optimize CAC Against Real Web3 LTV

Most Web3 marketing budgets are not “spent.” They are leaked through channels that generate attention but never compound into protocol health.

This is why CAC and LTV discipline matter more than impressions, follower growth, or vanity traffic.

In Web3, CAC should be calculated as total spend divided by retained active wallets or paying users, not clicks or form signups.

A strong benchmark for DeFi, infra, and on-chain SaaS products is keeping CAC below $50 per retained wallet.

The second layer is LTV, which should include:

• fee contribution 

• staking duration 

• governance activity 

• liquidity contribution 

• subscription or SaaS revenue 

• long-term token holding behaviour 

The benchmark remains simple:

LTV should be at least 3x CAC

If CAC is $40, the wallet should generate $120+ in long-term value.

This single ratio changes channel decisions dramatically.

Instead of paying for cheap traffic, teams begin ranking acquisition sources by long-term economic contribution. In practice, this is why tokenized referrals, ecosystem partnerships, and protocol-native loops frequently outperform paid ads by 4x ROI or more.

The channel strategy implication is equally important.

Trying to maintain X, Discord, Telegram, YouTube, Product Hunt, Reddit, and local communities simultaneously often creates operator fatigue and diluted signal quality.

Teams that focus on 2 to 3 channels with clear wallet attribution paths usually see up to 40% stronger engagement and better CAC efficiency.

3. The Hidden Burn Rate Lever: Cloud Credits, RPC Discounts, and SaaS Deals

The most underestimated source of burn rate in Web3 is tooling. Cloud, RPC, analytics, support, CRM, investor workflows, and internal operations quietly create $60K to $180K+ in annual burn, even for lean teams.

The best founders do not pay list price. They systematically stack startup credits, ecosystem discounts, and partner perks to convert fixed SaaS costs into near-zero operational overhead.

A realistic savings stack for a Web3 startup may include:

• up to $200K Google Cloud credits 

• up to $150K Microsoft Azure credits 

• up to $250K Cloudflare credits 

• up to $25K Alchemy credits 

• 70% off dRPC for the first 6 months 

• $50K PostHog analytics credits 

• Retool free for 1 year, worth up to $60K 

• Intercom with 90% first-year discount 

• DocSend with 90% off 

• Mixpanel free for early-stage product analytics.

Combined, many Web3 startups can realistically reduce operational spend by $100K to $300K+ in year one, especially if infra and analytics usage scales quickly.

Instead of manually sourcing these across fragmented partner portals, founders can access a curated startup deal stack here.

For teams actively optimizing burn, this is one of the fastest ways to buy 3 to 9 extra months of runway without slowing product velocity.

4. Retention Metrics That Actually Reduce Burn Rate

Acquisition without retention is not growth. It is delayed budget leakage.

This is why mature Web3 teams track retention as a financial control system, not just a product KPI.

Three metrics matter most:

1. D1 Retention
   The percentage of wallets returning 24 hours after the first meaningful action. This validates onboarding and wallet friction.

2. D7 Retention
   The percentage is still active after seven days. This is the real early product-market-fit checkpoint. In Web3, 63% of users disengage within 7 days when onboarding or first utility loops are weak.

3. Churn
   The percentage of wallets becoming inactive monthly. Anything above 20% churn usually means the team is paying to refill a leaking bucket.

The budget implication is direct.

Improving D7 retention is dramatically cheaper than replacing churned wallets with paid acquisition.

Projects that reinforce staking rituals, governance loops, gamified quests, or protocol identity often reduce churn from 40% to 15%, transforming growth from a paid channel into a compounding user system.

This is where analytics becomes cost optimization, not dashboard vanity.

5. The Lean Hiring Model for Web3 Startups

Payroll is where many technically strong Web3 teams accidentally destroy optionality.

The most resilient hiring model is simple:
keep fixed salaries only on functions that directly improve protocol quality or compounding growth loops.

In practice, full-time salaries should usually be limited to:

• senior smart contract engineers 

• protocol security leads 

• infra/data engineers 

• growth architects focused on attribution and retention loops.

These roles directly protect the treasury, prevent exploits, and improve protocol usage quality.

Everything else should stay variable as long as possible:

• general content 

• accounting 

• legal ops 

• overflow support 

• design production 

• community moderation 

• one-off research.

Use freelancers, agencies, bounty contributors, or DAO-native task systems instead.

The second lever is “multi-hat density.”

A data-minded engineer who can also instrument retention funnels or support ecosystem integrations on the early stages usually creates better ROI than several narrow specialists.

This keeps payroll aligned with core product resilience and compounding growth mechanics, instead of admin overhead.

6. Use Grants as a Strategic Non-Dilutive Cost Layer

For Web3 startups, grants are one of the cleanest ways to extend runway because they fund execution without dilution.

The best teams do not treat grants as opportunistic bonuses. They use them as a planned cost layer for MVPs, infra, research, liquidity, and ecosystem growth.

Micro-grants such as Base Builder Grants can fully fund early MVP milestones, while larger ecosystem programs like Ethereum Ecosystem Support can provide $10K to $250K for open-source tooling, infra, and R&D.

The second-order savings are even stronger.

Many grant programs reduce external service costs through:

• legal guidance 

• technical reviews 

• ecosystem mentorship 

• partner intros 

• liquidity support 

• newsletter and community visibility.

 This lowers both direct product costs and CAC through ecosystem trust.

To avoid wasting weeks on outdated portals and dead links, founders can use InnMind’s Ultimate Blockchain Grants List with 50+ active Web3 grants.

For teams preparing applications, this practical companion guide breaks down active programs, funding ranges, and common grant mistakes:

👉Web3 Grants: 50+ Active Blockchain Funding Programs & How to Apply

Done well, grants do not just extend runway.

They replace equity burn with milestone-funded execution.

Final Thoughts

For experienced Web3 founders, burn rate is rarely a finance problem in isolation.

It is usually the visible output of engineering duplication, poor CAC economics, weak retention loops, rigid payroll, and paying full price for infrastructure that startup programs would subsidize.

The highest-leverage cost optimization stack is usually:

• battle-tested frameworks instead of custom primitives 

• CAC tied to real wallet LTV 

• D7 retention as acquisition quality control 

• fixed salaries only on core resilience and growth loops 

• grants as non-dilutive milestone funding 

• startup credits replacing tooling burn. 

The fastest immediate lever for most teams is still tooling and infrastructure savings. If your startup wants the fastest path to $100K to $300K+ in cost reduction, start with the stack you are already paying for:

👉 https://innmind.com/startup-deals/

 In difficult markets, the winners are rarely the teams that raised the most. They are the teams that leaked the least while compounding product proof.

Over time, one pattern has become very clear.

Designing tokenomics that looks good on a slide is relatively easy. Designing a token economy that survives listing, unlocks, and multiple market cycles is much harder.

In 2025, founders, investors, and market makers tend to focus less on narratives and more on a small set of structural metrics. These metrics determine whether a token economy can hold up once real liquidity, unlocks, and user behaviour come into play.

This article breaks down those metrics in a practical way, with formulas and modelling logic you can use before launch or fundraising.

Token Distribution and Vesting: Timing Matters More Than Percentages

Token distribution is often discussed in terms of allocation percentages. In practice, timing matters just as much.

Who receives tokens, when they receive them, and under what vesting conditions directly impacts sell pressure, price stability, and future fundraising dynamics.

Several patterns tend to repeat:

• Large unlock cliffs often translate into short-term sell pressure, regardless of product quality.

• Unlock timing relative to market liquidity matters more than most teams expect.

• Vesting conditions across cohorts influence how attractive future funding rounds will be.

If early investors receive significantly better prices and faster vesting than later rounds, it becomes difficult to justify participation for new capital. Tokenomics fairness is not only a community concern, but a fundraising constraint.

FDV vs Circulating Market Cap

One of the most important tokenomics metrics in 2025 is the relationship between fully diluted valuation and circulating market cap at launch.

FDV to circulating market cap ratio:

FDV / MC = Fully Diluted Valuation / Circulating Market Cap

When FDV is very high while circulating supply is low, the project creates structural sell pressure. As unlocks begin, supply expands much faster than real demand can absorb.

In practice, more resilient token models often aim for:

• FDV to circulating market cap ratio below 10 to 15x

• Gradual supply expansion before major unlocks

• Clear communication around post-TGE dilution

This ratio has become a standard screening metric for many seed and Series A investors evaluating tokenized startups.

Sell Pressure Modelling by Cohort

Sell pressure is not a single number. It is a simulation of behaviour over time.

Different token holders behave differently:

• Team members

• Early-stage investors

• Ecosystem partners

• Community incentive recipients

Each group has different liquidity needs and risk tolerance.

A proper sell pressure model accounts for:

• Unlock schedules by cohort

• Expected percentage of sell-through after each unlock

• Comparison between expected sell pressure and daily trading volume

• Liquidity depth, often measured at a plus or minus 2 percent price range

If expected sell pressure consistently exceeds available liquidity, price decline becomes structural rather than emotional.

Token Velocity: How Quickly Tokens Circulate

Token velocity measures how quickly tokens move through the network instead of being held.

A commonly used formula is:

Token Velocity = Transaction Volume Over a Period / Average Token Supply During That Period

An alternative approach focuses on transaction count:

Token Velocity = Number of Unique Token Transactions / Total Token Supply

High token velocity often indicates weak holding incentives. Tokens circulate rapidly when users have no reason to keep them.

Velocity is influenced by:

• Transaction frequency

• Time between transactions

• Number of token holders

• Average holding period

Mechanisms such as staking, locking, vesting, buybacks, or burns can reduce velocity, but only when aligned with real product usage. Incentives alone rarely work without underlying demand.

Network Usage and On-Chain Demand

Network usage translates product traction into token demand, but only when usage is meaningful.

The relevant metric depends on the product:

• DeFi protocols track loans originated, repaid, or liquidity provided

• GameFi projects track active users, sessions, and in-game purchases

• Infrastructure protocols track meaningful transactions and fees paid in the native token

This is similar to revenue forecasting in Web2. Instead of subscriptions or advertising revenue, tokenomics models forecast user activity and demand for the token itself.

Raw transaction counts matter less than usage tied directly to utility.

Utility Design: Creating Structural Demand

In 2025, investors increasingly look for token utility that cannot be easily replaced by stablecoins or off-chain credits.

Stronger utility models often include:

• Protocol or gas fees paid in the token

• Access to essential product features

• Staking or locking for yield or privileges

• Collateral or liquidity provisioning

• Reward multipliers that reinforce long-term holding

Utility should create recurring demand. If a token is only used for emissions or rewards, velocity increases and unlock cycles become harder to absorb.

Supply Control: Burn and Buyback Mechanics

Burn and buyback mechanisms are optional tools, not requirements.

When used, they work best when tied to real business activity, such as protocol revenue or usage-based triggers.

Common approaches include:

• Burning a portion of protocol fees

• Periodic supply reductions linked to usage

• Buybacks funded by real revenue

These mechanisms should be clearly defined and legally reviewed. In some jurisdictions, buybacks may raise regulatory concerns, making legal input essential.

Final Thoughts

Tokenomics in 2025 is closer to financial modeling than storytelling. Metrics like FDV ratios, sell pressure simulations, token velocity, and network usage tend to determine whether a token economy can survive beyond launch.

Stress-testing these assumptions before the market does is often more valuable than optimising a narrative for launch day.

If you prefer modelling these dynamics instead of tracking them manually, we’ve put together a tokenomics calculator that helps simulate supply schedules, FDV and circulating market cap dynamics, token velocity, and sell pressure by cohort.

You can find it here if it’s useful for your process:
👉 https://innmind.com/downloads/tokenomics-calculator-pro

The goal is not to design tokenomics that looks good in a deck, but to build a token economy that can survive real market conditions.

Take Axie Infinity as an example: during its peak in 2021-2022, its dual-token model drove unprecedented growth, helping the project generate over $1.3 billion in revenue from in-game transactions. However, cracks in the tokenomics - such as excessive minting of $SLP (Smooth Love Potion) without adequate sinks - led to inflation, crashing the token price by over 95% in less than a year. This highlights the dual-edged nature of tokenomics: when done right, it fuels growth; when neglected, it leads to collapse.

During the 2017 “ICO boom” the only needed Tokenomics information was a pie-chart with a token split - however, the whole Web3 Industry has evolved so much that now Tokenomics is a whole new science and complex discipline.

Tokenomics generally consists of many complex elements like Game Theory, System & Mechanism Design, Financial Planning, Unit-Economics, Behavioural Aspects and Fundraising Structuring to name a few.

That’s why the recent analysis highlights the risks of poorly executed tokenomics as many teams lack Tokencomics-specific expertise. According to Forbes, many token models fail due to factors such as inflationary pressures, a lack of intrinsic utility, or token oversupply. These flaws often lead to price crashes, eroded community trust, and stalled project growth​.

As the Web3 space matures, the demand for professional tokenomics services has skyrocketed. These experts design, analyze, and refine token economies, ensuring stability, utility, and alignment with a project’s goals. Below, we highlight 10 leading tokenomics service providers for 2025, each with proven track records and unique strengths.

1. Сoinstruct

Why They’re Leading:

Coinstruct is a specialized agency for full-cycle Tokenomics development and auditing, trusted by $5B+ TVL chains. They have a team of diverse specialists from PhDs to degens from leading DAOs working together to create advanced token models, reward systems, economy audits & scoring.

Their focus is to create Web3-native sustainable economic solutions to help projects achieve desired goals through tokens: from efficient fundraising to increasing user base, retention and loyalty.

Success Story:Coinstruct played a pivotal role in designing the tokenomics for Aries Markets ($500M TVL), Nomis Protocol and Marsbase, among 35+ other Web3 projects. They have worked with projects backed by Tier-1 VCs like Sequoia.

What Sets Them Apart:

• A multidisciplinary team blending Economic, DeFi, technical, and VC expertise.

• A focus on integrating real-world data into tokenomic frameworks to enhance scalability and adaptability. Advanced level of conducting of Economic Simulations.

• Their past clients are Top-1 Smart Contracts on Linea, Aptos and Polygon chains

• They’ve developed more than 30+ Token Economies

• PhDs in the team to cover complex aspects in Game Theory & Math

• Tokenomics dedicated team of 12 people

• Use of custom software to do liquidity & market simulations

2. Syndika

Why They’re Leading:

Syndika is a powerhouse in Web3 venture building, offering end-to-end solutions. Syndika boasts one of the top economics divisions in the Web3 space. Their expertise in Web3, economic theory and practice, data science, and AI/ML empowers them to create and validate complex economic and token models, distinguishing them in the industry.

Success Case:

Syndika was instrumental in the tokenomics design for Kima, a Layer 1 blockchain and a leader in interoperability solutions. Their economic model algorithms calculate the exact fees and rewards needed to reach economic efficiency for the whole ecosystem - validators, liquidity providers, applications, and users.

What Sets Them Apart:

• Deep integration with projects to align economic models with market data.

• Proven success with billion-dollar startups, ensuring scalability and flexibility.

• Diverse services portfolio & hybrid compensation models.

3. TokenMinds

Why They’re Leading:

TokenMinds specializes in tokenomics advisory, leveraging their expertise to design innovative and sustainable economic models for Web3 projects across industries.

Success Case:

Collaborated with Ape In Poker, a blockchain-based poker platform, to create a robust tokenomics model. TokenMinds designed the token utility and incentive mechanisms, integrating features such as staking rewards, governance, and in-game currency utility to enhance user engagement and platform sustainability.

What Sets Them Apart:

MHL Solutions is a Web3 consulting firm specializing in tokenomics development, auditing, and strategic guidance for blockchain projects. They cater to Web3 founders, investors, and private investment groups, focusing on creating robust token economies and providing comprehensive pre-market support.

Success Case:

Collaborated with iAgent, a decentralized service network, to develop a tokenomics model that aligns user incentives with the platform's growth objectives. MHL Solutions designed a scalable token structure, enabling iAgent to optimize value distribution and create a robust ecosystem. This success is directly acknowledged by iAgent's testimonial, highlighting MHL's strategic insights and professional approach.

What Sets Them Apart:

• Comprehensive Tokenomics Services: MHL Solutions offers end-to-end tokenomics development and auditing, ensuring that token models are both innovative and compliant.

• Strategic Pre-Market Guidance: They assist clients throughout the pre-market phase with strategic advice, helping to identify potential weaknesses and highlight strengths.

• Focus on Risk Management: MHL Solutions emphasizes risk management and market behavior analysis, preparing clients for unexpected developments.

  
  4. MHL Solutions

MHL Solutions is a Web3 consulting firm specializing in tokenomics development, auditing, and strategic guidance for blockchain projects. They cater to Web3 founders, investors, and private investment groups, focusing on creating robust token economies and providing comprehensive pre-market support.

Success Case:

Collaborated with iAgent, a decentralized service network, to develop a tokenomics model that aligns user incentives with the platform's growth objectives. MHL Solutions designed a scalable token structure, enabling iAgent to optimize value distribution and create a robust ecosystem. This success is directly acknowledged by iAgent's testimonial, highlighting MHL's strategic insights and professional approach.

What Sets Them Apart:

• Comprehensive Tokenomics Services: MHL Solutions offers end-to-end tokenomics development and auditing, ensuring that token models are both innovative and compliant.

• Strategic Pre-Market Guidance: They assist clients throughout the pre-market phase with strategic advice, helping to identify potential weaknesses and highlight strengths.

• Focus on Risk Management: MHL Solutions emphasizes risk management and market behavior analysis, preparing clients for unexpected developments.

5. ShellBoxes

Why They’re Leading:
ShellBoxes is a unique blend of tokenomics expertise and blockchain security, providing end-to-end solutions for Web3 projects.

Success Case:While ShellBoxes has extensive expertise in blockchain security, specific tokenomics-focused case studies are not publicly available. However, their service portfolio highlights capabilities such as assessing token distribution models, economic sustainability, and smart contract compliance.

What Sets Them Apart:

• Integration of tokenomics with advanced security measures.

• Emphasis on scalability and cost efficiency.

6. Kaizen.Finance

Why They’re Leading:
Kaize Finance is a cross-chain token lifecycle management platform that enables projects and DAOs to generate, issue, and manage their tokens without coding.

Success Case:

Partnered with Degen DAO, a community-driven project, to develop a robust tokenomics framework. Kaizen.Finance facilitated the launch of Degen DAO’s token by implementing a vesting and staking mechanism, ensuring alignment between the community’s interests and the project’s growth strategy. The partnership resulted in increased user engagement and a sustainable token economy tailored to Degen DAO’s objectives.

What Sets Them Apart:

• No-Code Solution: Facilitates token creation and management without requiring programming skills.

• Cross-Chain Support: Operates across multiple blockchains, including Ethereum, BNB Chain, Polygon, Avalanche, Arbitrum, Fantom, Solana, Aptos, and Cosmos.

• Comprehensive Services: Offers tools for tokenomics design, vesting schedules, staking, and airdrops, providing a holistic approach to token lifecycle management.

7. Black Tokenomics

Why They’re Leading:
Black Tokenomics specializes in auditing, designing, modeling, simulating, and validating tokenomics for Web3 projects and venture capitals, having completed over 140 projects.

Success Case:
Collaborated with Naoris Protocol, a decentralized cybersecurity platform, to develop a unique dPoSec consensus mechanism, ensuring device validation and real-time threat detection.

What Sets Them Apart:

• Utilization of proprietary AI data protocols for comprehensive tokenomics analysis, offering tailored solutions that align with project-specific goals and market dynamics.

8.Economics Design

Why They’re Leading:
Economics Design is a global consulting firm specializing in optimizing tokenomics strategies for long-term success. Their multidisciplinary team focuses on embedding incentives into business and economic systems to enhance user acquisition and retention.

Success Case:
Collaborated with Sparkadia, a blockchain-based gaming ecosystem, to design its tokenomics model, focusing on dual-token mechanics and sustainable player incentives. The partnership ensured a balanced economy for both players and developers, aligning token utility with gameplay and ecosystem expansion.

What Sets Them Apart:

• A first-principles approach to designing resilient network economies.

• Emphasis on user personas, economic goals, and incentives to create integrated economy models.

• Proven track record across diverse industries, ensuring tailored solutions for each project.

9. BDC Consulting

Why They’re Leading:
BDC Consulting offers comprehensive tokenomics setup services, defining tailored token strategies and ensuring compliance with legal frameworks. They provide data-driven tokenomics modeling, including supply, distribution, and demand forecasting, to create bespoke token designs and incentive models.

Success Case:
BDC Consulting has analyzed numerous tokenomics structures since 2015, identifying trends and providing insights that help projects balance token availability and market stability. Their expertise aids ventures in avoiding common pitfalls and fostering long-term growth.

What Sets Them Apart:

• Utilization of real-world best practices and industry benchmarks.

• Focus on sustainable growth through strategic incentive models.

• Experience in analyzing and optimizing token distribution across various blockchain platforms.

10. BrightNode

Why They’re Leading:
BrightNode specializes in the study and design of economic systems within blockchain networks, aiming to create token economies that are structurally sound, useful, stable, and compliant with best practices in the Web3 space.

Success Case:
Collaborated with Pixelmon Research, a blockchain-based gaming project, to develop a comprehensive tokenomics model, focusing on utility token design, staking mechanisms, and player incentives to enhance long-term ecosystem sustainability.

What Sets Them Apart:

• Commitment to best practices in the Web3 space.

• Tailored tokenomics design that aligns with project-specific goals.

• Focus on creating stable and compliant token economies.

11. Mezen

Why They’re Leading:
Mezen is a consulting firm specializing in strategic, operational, financial, and investment services within the Web3 sphere. With over 6 years of experience, Mezen focuses on building sustainable and profitable businesses, enabling Web3 founders to scale, attract investors, and avoid common risks.

Their approach integrates deep expertise in financial consulting and investment strategy, driven by a team with strong backgrounds in hedge funds, venture capital, and quantitative disciplines. Mezen’s goal is to foster the growth of Web3 by empowering founders with data-driven strategies and essential knowledge shared freely on social media.

Success Story:

Mezen has worked with over 40 projects across the Web3 ecosystem, collectively reaching a market capitalization of $5B. Key projects include Antix, Dotcoin, and Venom. The team also contributed to innovative government-led CBDC initiatives and recently completed a groundbreaking M&A project merging two DAOs.

What Sets Them Apart:

• A team with hedge fund and VC backgrounds, combining deep expertise in finance, economics, and blockchain.

• A data-driven, research-backed approach to risk management and strategic decision-making, consistently exceeding client expectations.

• Tailored support for technically-minded founders, helping them transform innovative ideas into profitable ventures.

• Experience in diverse sectors, from tokenomics and market-making to M&As and DAO restructuring.

• Proven track record with standout clients in blockchain and beyond, including governments working on CBDC projects.

• A commitment to advancing Web3 through free knowledge sharing.

Final Thoughts

Tokenomics remains a cornerstone of Web3 success, shaping the trajectory of blockchain projects. As the industry matures, these top service providers are setting the standard, offering expertise that drives innovation, engagement, and growth.

If you’re building a Web3 project, partnering with one of these industry leaders could be the key to sustainable success.

*If you’re a great specialist in tokenomics and would like to be featured in the article - don’t hesitate to touch with us at support@innmind.com

Read also:

https://blog.innmind.com/how-to-design-token-utility-research/

https://blog.innmind.com/supply-side-tokenomics-supply-distribution-optimization-for-price-performance-cost-efficiency/

https://blog.innmind.com/web3-marketing-how-to-dock-to-the-untapped-potential/

But how do you create a quest that not only captures attention but also drives meaningful engagement?As an end user of your quests i want to give you some tips to keep in mind while developing your campaigns:

1. Know Your Audience: Tailor your quests to the interests and behaviors of your target users. Whether they’re DeFi enthusiasts, NFT collectors, or gamers, understanding what motivates your audience will help you create quests that resonate.

2. Make It Rewarding: The rewards you offer should be valuable enough to encourage participation but also sustainable for your project. Consider a mix of short-term rewards like tokens or NFTs and long-term incentives like governance rights or exclusive access.

3. Keep It Simple, Yet Challenging: Your quests should be easy to understand but challenging enough to keep users engaged. Consider a series of tasks that gradually increase in difficulty, encouraging users to dig deeper into your platform.

4. Leverage Social Proof: Incorporate elements that allow users to share their achievements on social media. This not only boosts engagement but also helps spread the word about your project organically.

5. Measure and Optimize: Use analytics to track the performance of your quests. What’s working? What’s not? Be prepared to tweak your quests based on user feedback and data insights to maximize their effectiveness.

With these tips in mind, let’s dive into the top 10 quest platforms for crypto marketing in 2024. Each of these platforms brings something unique to the table, whether it’s a massive user base, advanced analytics, or a focus on specific niches like DeFi or NFTs. Here’s how they can help you build and sustain a thriving community around your Web3 project.

Intract

Is a standout quest platform that caters to startups aiming to launch data-driven marketing campaigns. The platform is known for its robust analytics and deep integration with major blockchain networks. This makes Intract ideal for startups that are serious about optimizing their user engagement strategies through real-time data insights. With a growing community of over 12 mln registered users, Intract is a significant player in the quest platform landscape. The platform's interface is designed for ease of use, allowing startups to create and manage quests with minimal technical expertise. What sets Intract apart is its powerful analytics tools, which provide startups with the ability to monitor and adjust their campaigns dynamically, ensuring maximum impact and user retention. They were my gateway to the quest platforms and the project that pushed this narrative this year. I would highlight that they have the smoothest UX and I like that you can also make contests on the platform.

Galxe

Is a giant in the Web3 space, particularly known for its credential data network. Startups can leverage Galxe to create quests that are based on on-chain credentials, allowing for highly targeted and efficient marketing efforts. Galxe boasts a massive community of over 7 million active users, making it one of the largest platforms of its kind. Setting up quests on Galxe does require some technical knowledge, but the platform provides comprehensive documentation and support to guide startups through the process. The unique feature of Galxe is its credential-based quests, which link to on-chain activities, offering a highly focused and effective way to reach specific user segments. This makes it particularly valuable for startups looking to engage users who are already active in the Web3 ecosystem. The platform has a very nice design but the connection of progress on different chains isn't smooth.

Zealy (formerly Crew3)

Is designed with DAOs and community-driven projects in mind. The platform’s flexibility allows for a wide range of customizable quests, making it a preferred choice for decentralized organizations. With an active community of over 200,000 users, Zealy is particularly effective at fostering long-term engagement through its leaderboard and reward systems. These features encourage competition among users, which helps maintain interest and activity over extended periods. Zealy is easy to use, with a focus on customization that allows startups to tailor quests to the specific needs and interests of their communities. This focus on DAOs and decentralized governance gives Zealy a unique position in the market, making it an essential tool for projects that prioritize community engagement and participation.

AlphaMind

Offers a quest platform tailored specifically for Web3 startups, allowing them to create tasks that engage users and reward them with Karma, a system that fuels further participation within the platform. AlphaMind’s unique feature is that it is primarily a launchpad and side project of InnMind. It is also the newest project on our list meaning there is not yet such competition to get in as in other platforms. Launching quests on AlphaMind is designed to be simple and straightforward, with a range of customizable options to suit the needs of different startups. The platform’s support team is readily available to assist in setting up and optimizing campaigns, making it accessible even to teams with limited resources. The Karma reward system is what sets AlphaMind apart, offering a unique way to incentivize ongoing participation and deeper community engagement, making it an invaluable tool for sustaining long-term user interest.

Get more here: Top 10 Quest Platforms for Crypto Marketing in 2024

Conclusion

In 2024, quest platforms have solidified their role as essential tools for Web3 startups looking to build and engage their communities. Each platform offers unique features tailored to different types of projects, from gamified challenges to educational quests. However, these platforms require time and resources to set up and manage effectively. Combining the use of a quest platform with InnMind’s comprehensive resources can provide a balanced approach, helping startups maximize their marketing efforts and achieve their growth goals in the ever-evolving Web3 space.

Read also:

https://blog.innmind.com/where-to-leadgen-if-you-are-a-service-provider-in-web3/

https://blog.innmind.com/web3-marketing-how-to-dock-to-the-untapped-potential/

https://blog.innmind.com/2024-crypto-growth-hacks-essential-strategies-for-web3-token-success/

Decoding Investor Psychology in the Web3 Space

Understanding investor psychology is crucial when you're seeking funding. This principle applies to both traditional (Web2) and emergent (Web3) venture capital sectors, with some notable differences.

Unlike traditional markets, Web3 investors often combine a unique blend of technological savvy, a penchant for innovation, and a willingness to embrace high risk. Simultaneously, Web3 and crypto investors typically look for shorter timelines for investment returns, reflective of the dynamic and liquid nature of token investments.

As a founder, you must realize that some crypto VCs invest in visions of the future shaped by blockchain technology and decentralized principles. Others seek clear, timed exit opportunities and liquid assets for their portfolios. Thus, communicating a clear, visionary roadmap for your project is as crucial as showcasing its current achievements, along with answering investors' questions about how they can earn and exit in the future.

Analyzing What Web3 Investors Look For

When pitching to Web3 investors, it's essential to understand their nuanced investment criteria. These investors evaluate startups based on various factors, unique to the Web3 space as well as traditional metrics.

Verticals: They assess the startup's niche within specific verticals like DeFi, Metaverse, SocialFi, GameFi, Infrastructure and so on. Each vertical comes with its own set of opportunities and challenges, and demonstrating a deep understanding of your chosen niche can set your pitch apart.

For example: while in 2021 the NFT market was booming and the majority of crypto VC investors shared a huge interest in investing in NFT startups, in “crypto winter” 2023 we see the opposite picture: the NFT sector is severely down, many investors fixed losses in their NFT portfolio deals, that made it incredibly difficult to secure VC funding nowadays for NFT startups.

Stage and Traction: The development stage of your startup and the traction it has gained in the market are critical. Early-stage startups might be evaluated more on their potential and team capabilities, while later-stage startups are expected to show significant market traction, product-market-fit and user adoption.

Team: The strength and expertise of your team are scrutinized, with a focus on your ability to execute the vision and navigate the challenges of the Web3 ecosystem.

Scalability and Blockchain Ecosystem: Investors look for startups with scalable solutions and consider the growth potential within the chosen blockchain ecosystem. How well your startup integrates with and leverages the strengths of its blockchain platform can be a deciding factor.

A clear shift in investors' interest is evident between different blockchain ecosystems. For example, during the 2021 bull run, many VCs backed projects on Solana and Polygon chains, while in 2023, there's a growing interest in startups built on emerging ecosystems like TON, Arbitrum, and LayerZero.

Cap Table: This is particularly important for startups that already have initial VC funding (and for later-stage funding rounds as well). It reflects your startup's financial health and potential ROI for new investors. The quality of your cap table also matters; beware of toxic investors or 'dumpers' as they can deter quality investors and hinder future fundraising.

By aligning your pitch with these criteria, you can significantly boost your chances of securing investment from Web3-focused VCs.

Crafting a Compelling Web3 Startup Pitch: Essential Elements

A successful Web3 startup pitch hinges on your ability to present your vision, strategy, and potential in a succinct yet compelling manner. Your pitch deck, serving as the cornerstone of this presentation, should be a visual narrative guiding investors through your startup's story.

Essential Slides in a Web3 Pitch Deck:

Introduction Slide: Clearly define what your startup does, its mission, and vision. This sets the tone for the rest of the presentation.

Problem and Solution: Articulate the problem you're addressing, followed by your unique solution, showcasing its relevance and innovation.

Market Analysis: Demonstrate an understanding of your market size, growth potential, and position within the Web3 ecosystem.

Product Demo: A visual or interactive demonstration of your product helps in illustrating its functionality and user experience.

Business Model: Explain how your startup will generate revenue and achieve sustainability.

Team: Highlight the expertise and experience of your team members, underscoring their ability to execute the vision.

Traction: Demonstrate the progress and market acceptance of your product, including user growth, partnerships, and key milestones achieved.

Token Utility and Tokenomics (if applicable): For tokenized startups, detail the utility of your token and the tokenomics model, explaining how it underpins the project's value and sustainability.

Financial Projections: Present realistic financial forecasts, including expected revenue, costs, and profitability timeline.

Roadmap: Show a clear roadmap of your product development, milestones, and future plans.

Investment Ask and Use of Funds: Be clear about how much funding you're seeking and how it will be utilized to grow the business.

Each slide should be crystal clear, concise, and visually engaging. Avoid overloading slides with text or technical jargon. Your objective is to weave a story that not only highlights your startup's potential but also resonates with the investors' expectations and interests.

And if you want to get your pitch reviewed by a professional VC analyst, with detailed feedback and recommendations for improvements, before sending it to VC investors, join our weekly "Pitch Perfect" sessions with VC analysts and get it nailed.

Tactical Advice for Web3 Startup Founders

Here is some tactical advice sourced from seasoned VC analysts and successful crypto founders:

Understand the Investor's Perspective: Know what your investors are looking for. Some might be driven by technological innovation, while others prioritize financial returns. Tailor your pitch to address these specific interests.

Highlight Scalability and Adaptability: Emphasize how your startup can scale and adapt in the ever-evolving Web3 environment. Showcase potential for growth, especially in emerging blockchain ecosystems.

Focus on Community Building: In Web3, community is key. Demonstrate your strategies for community engagement and growth, highlighting how this adds value to your project.

Be Transparent About Risks and Regulations: Acknowledge the risks and regulatory challenges in the Web3 space. Show that you have a plan to navigate these complexities.

Demonstrate Product-Market Fit: Use data and user testimonials to prove that your product meets a real need in the market. Investors need to see that you understand your users and have developed a solution that resonates with them.

https://t.me/innmind/1403

Quality Over Quantity in the Cap Table: Be mindful of whom you're bringing on board as investors. A well-curated cap table with reputable and supportive investors can be more appealing than one with a high quantity of miscellaneous investors.

Leverage Success Stories: Learn from successful Web3 pitches. Analyze what worked for them in terms of storytelling, data presentation, and investor engagement.

Remember, each interaction with potential investors is an opportunity to not just pitch your project but also to build lasting relationships. Authenticity, clarity, and preparedness can set you apart in the competitive Web3 fundraising landscape.

In addition to strategic considerations, practical advice from those who have successfully navigated the Web3 funding landscape can be invaluable.

Andrey Shpanchuk, the founder of Osmos and CryptoMatch Bot, emphasizes the importance of a well-prepared pitch deck and comprehensive market research. He also suggests tailoring each slide in your deck to convey a specific message and emotion, refining your presentation after each pitch.

Here’s more from his fundraising experience:

Well-Prepared Pitch Deck and Market Research: It's crucial to approach investors with a thoroughly prepared pitch deck and comprehensive market research. This preparation shows that you understand the market and your startup's place in it. A well-researched presentation demonstrates your serious and strategic approach, which can significantly influence investor perception.

Doing Your Homework: Before pitching, research your potential investors. Understand their interests, past investments, and professional background. Tailoring your pitch to resonate with each investor's preferences can make a substantial difference. After the pitch, send a summary emphasizing the aspects that the investor found most compelling. This personalized follow-up can help reinforce the strengths of your pitch.

Crafting Each Slide with Intent: Be deliberate with each slide in your deck. Plan the key message and emotion you want to leave with the investor. After each pitch, refine your presentation to ensure that your intended message and emotional impact align with the investor's response. This continuous improvement helps in perfecting your pitch over time.

Meanwhile, the founder of the NFTFI platform Eesee Vova Sadkov stresses the need for clarity in every interaction with investors:

"Clarity is king in every interaction with investors. As founders, it's essential to approach each call or meeting with a transparent and definite purpose. Whether you're seeking funding, strategic advice, feedback, or introductions to other investors, state your objectives clearly. Making your idea, ask, and goals easily understandable not only facilitates clearer communication but also increases the likelihood of getting a definitive answer. This clarity helps investors quickly grasp the essence of your proposal and how they can contribute, streamlining the decision-making process."

Abdul Rahman, VC analyst at InnMind shared his advice, based on reviewing thousands of pitches of web3 startups and closing hundreds of investment deals in web3:

“Web3 VCs are very different from Traditional VCs. They are well aware of the current web3 landscape, the latest infrastructures and tools. So during a pitch, or even in your deck. Focusing on that X factor that you are doing from everyone else, “the outlier”, that's what they are looking for.

If you cloud that x factor with a bunch of extras that you are solving, then they may not be able to see.

Be logical and sensible why there is a need and a reason for your product to exist. Do not make it sound like another crypto project trying to raise funds.

If it is a consumer-based application, better to focus on the web3 component as the backbone technology that powers your application, which is made for all users, not just the ones who are native to Web3.”

Crypto VC Investors' Advice to Founders

Gaining insights directly from those funding Web3 startups is invaluable for founders. We reached out to active crypto VC investors on InnMind for their insights, and here’s the essential advice they shared:

Joe Su, the founding partner at Stratified Capital:

"Value comes from feasible solutions to real pain points. Three things should be clearly defined: What’s the problem you found, what’s the solutions you get, and what’s you differentiation. In addition, turn these answers into simple vision/illustration as punchline.

At this market situation, having clear token/economic plan is especially important. Though the market fluctuates, team should at least have the plan ready to be agile to capture the market momentum”

Elaine Yang, Investment Director at Waterdrip Capital:

"As a Web3 investor, I've found that beyond the technology itself, what truly impresses us in a pitch is a clear demonstration of real-world applicability.  show us your demo solution compared with other competitors and how much deep research you have done, you have to understand the market better than anyone even the investors, and how you achieve product-market fit,  and user adoption strategies alongside the technology. Ultimately, a compelling pitch not only showcases innovation but also aligns it with market demands and user needs."

Dima Foremnyi, General Partner at 3x Capital

"My best advice is to create separate decks for pitching and sending over emails.

The first one should have no more than 20 words per slide, be more visual to support your oral pitch and serve as a teaser for getting in touch with the founder.

The second one will be more comprehensive. You can send it over email, allowing the reader to dive deep while reading.

Don’t mix the two for the best experience. The reason for this is the human physiology. One can't comprehend the information both with eyes and ears at the same time. Make it easier for the investor to read or listen to you efficiently".

Riccardo Pagano, from Outlier Ventures:

"Showing is better than telling. I am a very visual learner. While a full product demo might not be feasible in a first pitch, using product snapshots to illustrate how you solve the problem for your target user can be highly effective. It helps me visualize the user experience more clearly in my mind."

Don’t underestimate the importance of visually engaging elements in a pitch. Founders should consider incorporating visual aids that succinctly convey their solution's impact, making it easier for investors to understand and remember the key aspects of their product.

Mark Leontev, from DeepWaters Capital:

“Beware of what we call 'marketing-speak'. Terms like 'groundbreaking' or 'revolutionizing' are less effective because they don't specify what you actually do, which is crucial for us to know. Don’t try too hard to convince us; simply prove it with objective data and straightforward language. For instance, instead of saying 'revolutionary product', specify 'a product that reduces processing time by 30%'. Show your company's value clearly and concisely and stick to the best practices”

Senior Venture Analyst at Insolvent Capital, Alina C:

"The average attention span of a VC is lower than that of the average person. Go straight to the point: problem, solution, your edge from competitors. You got cool traction - wrap me up with it! Save yourself and VCs time and they will love you for it."

Success Stories: Analyzing Winning Web3 Pitches

The Web3 industry is rich with stories of crypto and blockchain startups that have successfully captivated investors and secured millions of funding in their early stages. Their success is attributed not only to favorable market conditions but also to their compelling narratives and ambitious ideas. Analyzing these success stories provides valuable lessons for founders on what makes a pitch stand out.

On the InnMind knowledge base, you can find plenty of such examples, including pitch decks of CoinList, FTX, Coinbase, Revolut, and other well-known names from the times when they were raising their early funding.

https://app.innmind.com/kb/viewDoc/coinlist-pitch-deck-example

Analyzing successful Web3 pitches reveals common threads that led to their triumph, so we highly recommend you to download and study these decks. By dissecting these success stories, you can gain insights into the strategies that resonate with investors and learn how to replicate this success in your pitch.

Our analysis of these success stories reveals several common factors contributing to their triumph:

• Understanding the Market and Audience:

Successful pitches often stem from a deep understanding of the market and the target audience. Startups that clearly articulate how they address specific needs or gaps in the Web3 space stand a better chance of resonating with investors.

• Innovative Solutions with Practical Applications:

Pitches that showcase innovative solutions, especially those with practical, real-world applications, tend to attract more interest. Demonstrating how your solution can be implemented effectively in the current market can significantly boost its appeal.

• Clear and Concise Pitch Decks:

A well-structured, clear, and concise pitch deck is a common feature of successful pitches. These decks effectively communicate the startup's value proposition, market potential, and unique selling points without overwhelming the audience with information.

• Strong Team Presentation:

Investors often invest in people as much as they invest in ideas. Successful pitches usually include a compelling presentation of the team, highlighting their expertise, experience, and passion for the project.

• Evidence of Traction and Growth Potential:

Startups that provide evidence of traction, such as user growth, partnerships, or early adopter feedback, offer tangible proof of their potential. This evidence helps build investor confidence in the startup's future growth.

By incorporating these elements, Web3 founders can craft pitches that not only showcase their startup’s potential but also align with what investors are looking for in a successful venture.

Engaging and Persuading Investors with Your Pitch

Engaging and persuading investors require more than just presenting facts; it involves connecting with them on a deeper level and requires a blend of storytelling, clarity, and strategic presentation.

Here are some key techniques to make your pitch stand out:

Storytelling: Start by telling the story of your startup. Explain why it exists, the challenges it aims to solve, and the journey so far. A compelling narrative that connects emotionally with investors can be very persuasive.

Visual Aids: Utilize visual elements effectively. Infographics, charts, and product snapshots can help investors visualize the problem, solution, and impact of your product. Echoing Riccardo Pagano from Outlier Ventures, "Showing is better than telling." Use visual aids to make complex ideas easily understandable.

Clear Value Proposition: Articulate a clear value proposition. Explain what sets your startup apart and why it’s a worthy investment. Be specific about how your solution addresses a gap in the market.

Data and Evidence: Support your claims with data. Market research, user statistics, and growth metrics can validate your business model and market potential. Tangible evidence strengthens your case and builds credibility.

Engage with Q&A: Be prepared for a thorough Q&A session. Engaging with investors’ questions thoughtfully and thoroughly can demonstrate your expertise and commitment to the project.

Passion and Enthusiasm: Your enthusiasm for your project can be infectious. Show your passion and belief in your startup’s potential. Investors are not just investing in an idea; they’re investing in the team behind it.

Practice and Refine: Practice your pitch multiple times. Refine it based on feedback and your own observations. Each pitch is an opportunity to improve and adapt.

In essence, remember that investors are not just investing in an idea; they are investing in people. Show passion, conviction, and a clear vision for the future. Your enthusiasm can be infectious, making investors more inclined to join you on your journey.

Conclusion: Summarizing Key Takeaways for Web3 Fundraising

Approaching Web3 investors successfully requires a blend of clarity, innovation, and strategic thinking. Founders must:

• Understand Investor Psychology: Recognize the unique perspectives and expectations of Web3 investors, tailoring your pitch to meet their specific interests.

• Articulate Your Value Proposition: Clearly and compellingly present your startup's purpose, market potential, and what sets it apart.

• Leverage Success Stories: Draw insights from successful Web3 pitches, learning how to effectively communicate your startup's potential.

• Engage Investors with a Compelling Narrative: Use storytelling, data, and visual aids to make your pitch engaging and persuasive, and prepare for interactive Q&A sessions to showcase your expertise.

Remember, at its core, a successful pitch is a story well told – one that resonates with the aspirations and convictions of its audience.

For startup founders ready to embark on this journey, InnMind presents a valuable platform. As a leading hub for Web3 startups and VCs, InnMind enables founders to connect directly with investors, pitch innovative ideas, and access essential resources. Register on InnMind, start reaching out to active crypto VCs, and open the doors to potential investors and fundraising opportunities in the Web3 world.

Embrace these strategies, connect with the right people, and pave your way to a successful Web3 venture.

Read also:

https://blog.innmind.com/top_10-grant_providers_for_web3_part_2/

https://blog.innmind.com/decoding-vc-investor-feedback/

https://blog.innmind.com/top-20-active-web3-venture-capital-firms-investing-in-2023-bear-market/

But here’s the thing—choosing an accelerator isn’t just about getting funding. It’s about finding a partner that will be in your corner, offering the mentorship, resources, and network you need to scale your vision into a reality.

The accelerators on this list are more than just cash cows—they're ecosystems where groundbreaking Web3 ideas are nurtured and grown.

In this article, we’re diving deep into the top 10 Web3 accelerators that are not only supporting promising projects with capital but also rolling up their sleeves to help startups build, grow, and dominate in the decentralized world. From Y Combinator’s legendary alumni network to Outlier Ventures’ expertise in tokenomics, each of these programs offers something unique.

And, to make things even sweeter, we’ll highlight some of their biggest success stories—because nothing speaks louder than results.

So, whether you’re a founder looking to take your project to the next level or an investor hunting for the next unicorn, this is your roadmap to the accelerators that are shaping the future of Web3. Buckle up—this is where the magic happens.

1. Alliance

Overview: Alliance provides a unique combination of funding, mentorship, and a deep connection to a community of Web3 founders and experts. What sets Alliance apart is its focus on not just providing capital but also fostering a long-term relationship with its alumni, offering continued support and opportunities for collaboration even after the program ends.

Alliance offers up to $250,000 in funding with flexible terms. Startups must demonstrate strong potential in the Web3 space and be ready to scale. They are dedicated to scaling Web3 startups, particularly those in decentralized finance (DeFi) and blockchain infrastructure.

A key success story is 1inch, a leading decentralized exchange (DEX) aggregator that has grown into a major player in the DeFi ecosystem. Another notable alumni is Paraswap, a popular DEX aggregator that has secured a substantial user base.

Source: Alliance

2. Y Combinator

Overview: Y Combinator is one of the most prestigious accelerators globally, providing startups with seed funding, mentorship, and a robust network of entrepreneurs and investors. What differentiates Y Combinator is its extensive alumni network and the highly competitive nature of its program.

They offer $500,000 in seed funding in exchange for equity, but the program is highly selective, with a focus on high-impact startups across various industries.While Y Combinator supports a broad range of industries, it has increasingly included Web3 startups in its portfolio, providing them with the resources needed to scale rapidly.

Coinbase, one of the world’s largest cryptocurrency exchanges, participated in Y Combinator in 2012 and has since grown into a multibillion-dollar company. Another success story is OpenSea, the largest NFT marketplace globally, which has achieved unicorn status and significant market influence.

Source: Y Combinator

3. Celo Camp

Overview: Celo Camp is a blockchain accelerator specifically designed for projects building on the Celo platform. It offers funding, mentorship, and a structured program to help startups grow in the Celo ecosystem.

They provide funding and support to selected projects. The focus is on startups that are ready to build and launch products on the Celo blockchain.

Celo Camp focuses on projects that contribute to financial inclusion and the broader Celo ecosystem, particularly in the areas of decentralized finance (DeFi) and mobile-first applications.

Ubeswap, a mobile-first decentralized exchange built on Celo, has gained significant traction in emerging markets. Moola Market, a non-custodial liquidity protocol on Celo, has also seen widespread adoption within the ecosystem.

Source: Celo Camp

4. Boost VC

Overview: Boost VC is known for its intensive 12-week accelerator program that focuses on early-stage startups in emerging technologies, including Web3. What makes Boost VC unique is its emphasis on moonshot ideas and its willingness to take risks on highly innovative projects.

Startups in Boost VC’s program receive up to $500,000 in funding in exchange for equity. The program is designed to rapidly accelerate the growth of startups with high potential.They focus on deep tech, including Web3, virtual reality, and artificial intelligence.

Etherscan, a widely-used blockchain explorer, is one of Boost VC’s notable alumni, having become an essential tool for Ethereum users globally. Arweave, a decentralized storage network that enables permanent data storage, is another success story that has secured substantial funding and partnerships.

Source: Boost VC

5. Brinc (ZK Advancer)

Overview: Brinc’s ZK Advancer program supports Web3 startups with a focus on areas like DeFi, gaming, and zero-knowledge proofs. Brinc stands out for its emphasis on sustainability and its global reach, offering a program that is accessible remotely.

Startups in the ZK Advancer program receive up to $250,000 in funding. The program is remote, making it accessible to startups globally. They focus on Web3 innovations that have a positive impact on sustainability and scalability, particularly in emerging markets.

Efinity, a blockchain for NFTs built on Polkadot, is one of the notable projects supported by Brinc.

Source: Brinc

6. Techstars Web3 Accelerator

Overview: Techstars, in partnership with Alchemist, offers a Web3-specific accelerator that provides funding, mentorship, and a global network. What makes Techstars unique is its extensive network of mentors and investors, providing startups with unparalleled access to resources.

Startups receive $120,000 in funding in exchange for equity. The program is highly competitive, with a focus on high-growth potential startups.Techstars focuses on early-stage Web3 startups across various verticals, including DeFi, NFTs, and blockchain infrastructure.

Chainalysis, a leading blockchain analytics company, has expanded globally and raised over $100 million in funding. Another success story is Alchemy, a blockchain development platform that powers some of the biggest decentralized applications (dApps) and has secured significant investments.

Source: Techstars Web3

7. Outlier Ventures (Base Camp)

Overview: Outlier Ventures' Base Camp accelerator offers a structured program focusing on Web3 technologies like DeFi, NFTs, and decentralized infrastructure. What sets Outlier Ventures apart is its deep expertise in tokenomics and its focus on decentralized ecosystems.

Provides up to $150,000 in funding in exchange for equity. The program is designed to help startups refine their business models and prepare for further investment. Outlier Ventures focuses on Web3 and decentralized technologies, helping startups build the infrastructure of the future internet.

Boson Protocol, a decentralized commerce protocol, has gained attention for its innovative approach to e-commerce and raised millions in funding. Auroboros, a metaverse fashion brand, has also emerged as a frontrunner in digital fashion, securing collaborations with major brands.

Source: Outlier Ventures Base Camp

8. Consensys Mesh (Tachyon)

Overview: Tachyon, part of Consensys Mesh, provides funding and resources to early-stage startups building on Ethereum. What differentiates Tachyon is its focus on Ethereum and its ability to connect startups with the broader Consensys ecosystem.

Offers seed funding and access to the Consensys network. Startups must be building on Ethereum or related technologies.The focus is on Ethereum-based projects, with an emphasis on decentralized applications and infrastructure.

3Box Labs, which powers the Ceramic network for decentralized data, has successfully built a robust platform for decentralized identity and data management. Mina Protocol, known for its lightweight, privacy-preserving blockchain technology, has also gained significant attention and investment.

Source: Consensys Mesh Tachyon

9. Seed Club

Overview: Seed Club is a DAO-centric accelerator that provides funding and mentorship to projects focused on building decentralized communities. What makes Seed Club unique is its focus on DAOs and its community-driven approach to project development.

Offers up to $1 million in funding. The program is tailored to projects that are community-focused and looking to build on decentralized platforms. Seed Club focuses on DAOs, community tokens, and other decentralized governance models.

PartyDAO, a decentralized platform for collaborative purchases, is one of Seed Club’s notable successes, having gained significant traction in the Web3 community. Forefront, a community-led project focused on tokenized communities, is another success story from Seed Club.

Source: Seed Club

10. Antler

Overview: Antler is a global accelerator and venture capital firm that supports startups at the pre-seed stage, including those in the Web3 space. Antler is known for its strong focus on founder development and its global reach, offering programs in multiple cities around the world.

Provides up to $150,000 in funding. Antler also invests in selected startups after the program ends. Antler supports a broad range of industries, including Web3, with a focus on high-impact startups that have the potential to scale globally.

Synthetix, a decentralized synthetic asset platform, is a successful Web3 project backed by Antler. Another notable success is BitGo, a digital asset trust company and security platform, which has grown significantly in the blockchain space.

Source: Antler

Joining an accelerator is a significant commitment that requires a dedicated team ready to invest time and resources. The intensive nature of these programs demands focus and energy, as startups will be working closely with mentors, refining their business models, and rapidly scaling their operations. However, the rewards can be substantial, with access to funding, mentorship, and a strong network of industry professionals that can propel a startup to the next level.

It’s also important to consider complementing accelerator participation with additional platforms like InnMind. As a comprehensive platform for startup development, InnMind can provide ongoing support, networking opportunities, and resources that help maintain momentum during and after the accelerator program. Combining the benefits of an accelerator with the tools and community offered by InnMind can create a well-rounded approach to scaling a Web3 startup successfully.

Read also:

https://blog.innmind.com/active-crypto-vc-funds-in-2024/

https://blog.innmind.com/top-crypto-vc-investment-narratives-in-2024/

https://blog.innmind.com/top-vc-investments-in-web3-startups-in-summer-2024-vc-landscape-overview/

For the last 6 months I have tried myself as a leverage trader on altcoins market, trying to grow my capital on pre-halving & post-halving market movements. And what can i say, now  i regret everyday that I ever decided to touch that black hole . So today I decided to bring up something that from my experience  makes you money instead of hunting you down to liquidate your assets.

The crypto market can be a challenging place for retail investors, especially those looking to make quick gains by trading altcoins. It seems like every time we take a step forward, we get wrecked by influencers pushing pump-and-dump schemes, market conditions that turn on a dime, or VCs dumping their bags on us. Trading based on technical analysis often feels like little more than educated guessing, and the constant volatility can be discouraging. But there is a more sustainable, stable, and fair way to earn money in crypto: launchpads. In this article, we'll dive  into how launchpads work, their advantages, and the challenges they pose. We'll also highlight three new launchpads where you can still get in early, and discuss why this approach might be a smarter strategy for retail investors.

The Mechanics and Benefits of Launchpads

Launchpads are platforms that help new crypto projects raise capital and gain exposure by allowing early-stage investments from retail investors. They act as intermediaries between projects and investors, ensuring a fair and transparent process.

They offer a more structured and potentially less volatile investment opportunity compared to traditional trading. Since investors get in at an earlier stage, they can ride the wave of initial growth that new projects often experience, something that is typically missed in standard trading practices where retail investors buy tokens after they have already surged in value.

Moreover, launchpads are a very fast growing market. From 2019 to 2023, the number of projects launching on decentralized launchpads surged exponentially. In 2019, there were around 50 projects that successfully launched via these platforms. By 2023, this number had skyrocketed to over 1,500 projects, marking a staggering 2900% increase over just four years​ ​ (KuCoin). This explosive growth can be attributed to the increasing demand for transparent, decentralized fundraising methods and the rise of blockchain and Web3 technologies.

Number of launched startups

According to recent industry reports, the overall market share of startups launching on decentralized platforms has also seen significant growth. In 2019, decentralized launchpads accounted for less than 5% of the total fundraising market in the crypto space. By 2023, this share had expanded to over 30%, indicating a significant shift in how new projects prefer to raise capital​ (Bitbond)​ . This trend is expected to continue as the benefits of decentralized launchpads—such as lower costs, broader access to global investors, and immediate liquidity—become more widely recognized.

To conclude here’s why launchpads are game-changers for retail investors:

• Early Access: Investors get early access to promising projects before they hit the broader market. This can lead to significant returns if the projects perform well. For example, my first gain from crypto i saw when i participated in Scaleswap’s IDO of XTM, and within 5 month turned my allocation of 200$ into 7000$

• Lower Risk: Projects on launchpads are typically vetted, reducing the risk of scams. This vetting process includes an in depth review of the project's whitepaper, team, and overall feasibility, helping to filter out low-quality projects.

• Community Engagement: Investors can be part of a project's community from the beginning, often gaining additional benefits like governance tokens. This early involvement allows investors to contribute to and influence the project’s development. For example, Uniswap distributed 400 UNI tokens, valued at $1,400, to its early users, fostering strong community engagement and loyalty. These tokens provided significant returns, further incentivizing participation.

However, launchpads also have disadvantages:

• Accessibility: High demand can make it difficult to secure an allocation. Popular launchpads often have thousands of participants competing for a limited number of spots, which can be frustrating for smaller investors.

• Initial Investment Requirements: Some launchpads require a significant initial investment to participate. For instance, DAO Maker requires participants to stake at least 2,000 DAO tokens, valued at approximately $920.

• Market Volatility: Even vetted projects can fail due to market conditions. The crypto market’s inherent volatility means that even the most promising projects can face challenges post-launch, affecting investor returns.

Many of the cons of being a Launchpad’s investor you can eliminate by becoming an early adopter, and jumping early in the boat, when there is not that much demand and crowds of degen retailers aren't there.

So, here are some opportunities you still can take advantage of:

Top 3 NEW projects in the space

ChainGPT Pad

ChainGPT Pad, launched in 2023, stands out by integrating AI technology into its platform. This AI-driven approach helps in evaluating projects and providing insightful analytics to investors, ensuring that only high-quality projects are featured. The platform offers a tiered staking system (Bronze, Silver, Gold, and Diamond), where users stake $CGPT tokens to qualify for different levels of participation. This system provides various benefits, including better allocation chances and exclusive perks for higher tiers.

Pros:

• High Returns: Some projects, such as Solidus (AITECH), have achieved impressive ATH ROI of up to 41.19x for early investors.

• AI-Driven Analytics: The use of AI for project vetting and analytics enhances the reliability and potential success of the projects listed.

• Community Support: Strong community engagement and support for the projects, which helps in building momentum and initial liquidity.

Cons:

• High Demand: Popular IDOs can be oversubscribed, leading to limited token allocation for individual investors.

• Entry Barriers: The need to stake $CGPT tokens can be a financial barrier for small investors.

• Participation Requirements: To participate in IDOs on ChainGPT Pad, investors need to stake a minimum of $CGPT tokens. The exact amount varies by tier, but entry-level participation generally starts at a few hundred dollars' worth of $CGPT tokens.

BullPerks

BullPerks, also launched in 2023, prides itself on being the "fairest and most community-oriented decentralized VC and multichain launchpad." The platform is designed to ensure fair access and participation opportunities for all investors, regardless of their investment size. Unlike many other launchpads, BullPerks offers a refund mechanism under certain conditions, providing additional security and confidence for investors. It supports nearly all major public blockchains, including Binance Smart Chain, Solana, Cardano, Polygon, and more.

Pros:

• Fair Access: The six-tier system based on $BLP token staking ensures that all participants have a fair chance of participating in IDOs, with higher tiers receiving better allocation.

• Strong Returns: Projects like Bloktopia have achieved high returns, reflecting the platform's ability to attract and support high-quality projects.

• Security Measures: The refund mechanism and careful project audits add layers of security for investors.

Cons:

• Token Requirements: Staking $BLP tokens is necessary for participation, which can be a hurdle for new or small investors.

• Technical Issues: Some users have reported technical issues during high-demand IDOs, which can affect the participation experience.

• Participation Requirements: To participate in IDOs on BullPerks, investors need to stake $BLP tokens. The entry-level staking requirement is relatively low compared to some other platforms, making it accessible to a broader range of investors. The exact amount required varies by tier, but generally starts at a few hundred dollars' worth of $BLP tokens.

Alphamind

The main unfair advantage of AlphaMind is that it is a side company of InnMind.  Which is at the moment the  biggest web 3 ecosystem,focusing  on connection of start up and investors, and accelerating projects from  early stages. With over 7 years of traction on this market, its resources  and raises for projects like metis, we can expect an outstanding selection of projects from the team.

However it is also the earliest call on our list, alphamind isn't yet live but you can already become an early adopter and get prepared  for the upcoming releases. InnMind developed a unique karma system which ensures fair community driven distribution of allocation and reward system designed to benefit early adopters and engaged community members.

Pros:

• You are very early.

• Backed by the biggest web3 startup ecosystem.

• Lower entry barriers compared to competitors.

• Focus on community.

Cons:

• New platform, still gaining traction.

• Limited project portfolio initially.

In conclusion, launchpads offer a promising avenue for retail investors to gain early access to new crypto projects with reduced risk. While challenges like accessibility and market volatility remain, platforms try to  provide a balanced and user-friendly approach to navigating these opportunities. And the best way to be a profitable Launchpad investor is to be with the project since its first steps. So wish you luck, and don't miss this out!

Read also:

https://blog.innmind.com/top-vc-investments-in-web3-startups-in-summer-2024-vc-landscape-overview/

https://blog.innmind.com/top-crypto-vc-investment-narratives-in-2024/

https://blog.innmind.com/alphamind-by-innmind-the-fair-launchpad-for-true-web3-community/

From years of experience of working with web3 startups and service providers we finally came up with a solution on how to automatically facilitate quality & relevant networking between both parties. And this solution lies at the core of InnMind Experts Membership.

Let’s dive deeper into what this membership offers, how it can dramatically increase your traction and why being part of the InnMind ecosystem is the easiest unfair advantage you can find on the market.

Understanding InnMind's Ecosystem

InnMind is more than just a business intelligence and deal-origination platform; it's a comprehensive hub designed to connect Web3 startups, venture capital funds, and service providers (also called “experts”). With a network of over 55,000 ecosystem players, including more than 22,000 startups and 5,000 VC funds, InnMind provides unparalleled access to potential clients and partners. Our platform is fueled by startups desperate to find investors and quality service providers that could offer services and support them in marketing, analytics, tokenomics, HR, etc.

InnMind is the ultimate place where web3 business community networks, and we want to offer our community an easy access to quality service providers that can boost them to another level.

InnMind Premium Membership: A Game Changer

InnMind offers an extensive package designed specifically for Web3 service providers. This yearly membership is packed with features that not only enhance visibility but also ensure you are connecting with the right audience. Here’s a breakdown of what you are getting:

1. Up to 100 Connection Requests per Month:

Maximize your lead generation efforts by sending up to 100 connection requests monthly to active Web3 startups that match your service offerings. This feature allows you to target and reach out to potential clients directly, enhancing your networking opportunities.

2. Free Verification and Verified Badge:

Boost your credibility and visibility on the platform with a verified badge. This badge distinguishes your profile, making it more appealing and trustworthy to startups looking for reliable service providers.

3. Featured Profile:

Enjoy increased exposure with a dedicated post on InnMind’s Telegram channel and a mention in their weekly newsletter, which reaches over 55,000 Web3 B2B audience members once a quarter. This feature ensures your services are highlighted to a broad and relevant audience.

4. Knowledge Base Contribution:

Showcase your expertise by contributing to the InnMind Knowledge Base. You can submit a template, guide, or list related to your services, which will be permanently placed in the Knowledge Base section with a reference to your expert profile. This not only demonstrates your authority in the field but also provides lasting value to the community.

5. Perks Club Placement:

Get a one-time permanent placement of a special perk (such as a free consultation or a discount on your services) in InnMind’s Perks Club section. This incentive can attract more startups to engage with your services, offering them added value while increasing your visibility and engagement on the platform.

Additional Benefits and How They Enhance Your Lead Generation

Beyond the core features of the membership, InnMind offers additional services that can further amplify your lead generation efforts:

1. Organization of Workshops and Webinars:

InnMind helps organize and promote dedicated online events like workshops and webinars. These events are live-streamed on our YouTube channel and promoted across our extensive network, ensuring maximum attendance and engagement leading to an increased deal conversion rate.

2. Article Publication:

Publish educational and promotional content in the InnMind blog, which attracts over 2,000 unique monthly visitors. Your articles will be reviewed by the InnMind editorial team to ensure they meet quality standards and then promoted across InnMind’s social media channels and weekly newsletter. This exposure can significantly boost your brand’s visibility and attract potential clients through quality educational marketing efforts.

3. Comprehensive Promotion:

Your services and content will be promoted through InnMind’s various channels, including social media platforms with a combined audience reach of 30,000 and a weekly newsletter with 55,000 readers. This omnichannel approach ensures that your services are seen by a wide and relevant audience, increasing the chances of lead conversion.

Why Choose InnMind?

InnMind’s membership is designed to generate the best results for your investment. Our platform provides unmatched access to a thriving network of Web3 startups and investors, comprehensive resources to enhance your service offerings, and exclusive opportunities to connect with potential clients. By leveraging InnMind’s extensive network and promotional capabilities, you can significantly boost your visibility, credibility, and client engagement.

Clients Feedback

“ The Innmind Expert service program allowed me to connect and be connected to vetted start ups at the stage where my growth mentorship and services had the most value and impact for them while enabling me to grow my personal network by building over 30+ direct and secondary connections with some of the most exciting projects and inspiring founders in Web3. Beyond grateful for the Innmind team and platform for enabling this and looking forward to the being part of the alumni going forward! “ - Will, GrowthBusters

Apply the following Promo Code to benefit from an exclusive 10% discount for a yearly Expert membership on InnMind: 10OFFEXPERTS

The promo code is limited so don’t postpone upgrading to the premium plan!

Feel free to schedule a chat with me if you’d like to go for a virtual coffee, discuss your sales strategy on InnMind or ask any questions.

Read also:

https://blog.innmind.com/web3-marketing-how-to-dock-to-the-untapped-potential/

https://blog.innmind.com/2024-crypto-growth-hacks-essential-strategies-for-web3-token-success/

https://blog.innmind.com/5-things-web3-startups-often-overlook-and-how-innmind-accelerator-fixes-them/

I am back to bring you some positive fundraising vibes, and some tips in your uneasy journey. One notable change for the crypto market of 2024, is that as you noticed not all coins are running. On previous bullrun,  the altcoin market mostly ran as a whole, bringing profits to holders of all the projects in the space.

Unfortunately since then, the amount of tokens has tripled and crypto VC investors have become much more selective in their agenda. but don't panic, folks.

You're probably thinking oh shit, how am I going to exchange my pixels for bills if our dear friends start to think before they invest? But don't worry, nothing really changed.

The only thing is that now to get on their radar you need to mention that you correspond to a fancy narrative, despite being a crypto project. And today I will show you what combinations of letters open the door to the hearts of investors.

Here are the top crypto narratives that are driving the market & attracting investors’ interest in 2024.

Where Crypto Investors Deploy Capital? The Top Crypto VC Investment Narratives in H1 2024

1. Real World Assets (RWAs)

Tokenizing real-world assets has become a significant trend, as it brings traditional assets onto the blockchain, enhancing liquidity, accessibility, and efficiency. This narrative has gained traction due to its potential to revolutionize sectors like real estate, commodities, and securities by making them more accessible to a broader audience. In  2023 tokenized US Treasuries grew by 641%, reflecting increasing institutional interest in integrating traditional finance with blockchain technology​.

Top Deals:

• Ondo Finance: Raised $20 million in a Series A round in February 2024, led by Pantera Capital. Ondo Finance is focused on providing tokenized securities and structured financial products on the blockchain.

• Polymesh: Secured $15 million in a funding round in March 2024, led by Polychain Capital. Polymesh is a blockchain specifically designed for regulated assets, making it easier to create, issue, and manage security tokens.

• Total Investment: Approximately $200 million has been invested in RWA projects in H1 2024. Major stakes include $50 million from BlackRock and $40 million from Sequoia Capital.

2. Layer 2 Solutions

Layer 2 solutions address scalability issues in blockchain networks, providing faster and cheaper transactions. This narrative has gained momentum as blockchain adoption increases, and the need for scalable solutions becomes critical to handle the growing number of transactions without compromising speed or cost.

A notable fact is that Solana recorded 884,000 ( x3 increase) active addresses on January 31, 2024, reflecting significant growth driven by airdrops and increased activity in decentralized exchanges.

Top Deals:

• Arbitrum: Raised $120 million in a Series B round in January 2024, led by Lightspeed Venture Partners. Arbitrum enhances Ethereum's capabilities through its optimistic rollup technology.

• Optimism: Raised $100 million in a Series A round in February 2024, led by Andreessen Horowitz (a16z). Optimism focuses on scalable Ethereum solutions, reducing transaction costs and improving throughput.

• Total Attracted: Around $500 million has been directed towards Layer 2 projects. Notable contributions include $150 million from a16z and $120 million from Sequoia Capital.

3. AI and Blockchain Integration

Integrating artificial intelligence with blockchain technology is gaining traction, offering new utilities and efficiencies. This combination enhances the capabilities of both technologies, enabling autonomous decision-making, predictive analytics, and more secure data management. The AI sector's valuation has more than doubled over the past year, highlighting the growing synergy between AI and blockchain​.

Top Deals:

• Fetch.AI: Raised $40 million in a Series C round in March 2024, led by Outlier Ventures. Fetch.AI focuses on creating a decentralized machine learning network that enables autonomous "agents" to perform useful economic work.

• Bittensor: Secured $35 million in a Series B round in April 2024, led by Dragonfly Capital. Bittensor aims to create a decentralized network for AI models to train and share knowledge.

• Total Attracted: Over $250 million has been funneled into AI and blockchain integration projects. Major stakes include $60 million from Outlier Ventures and $50 million from Digital Currency Group (DCG).

4. Decentralized Science (DeSci)

DeSci aims to transform scientific research and collaboration through blockchain's transparency and decentralization. This narrative is driven by the need for more open and collaborative research environments, breaking down traditional barriers in scientific funding and data sharing.

An interesting fact is that the decentralized science sector funded 200 projects through blockchain platforms in the past year, marking an increase by half​.

Top Deals:

• LabDAO: Raised $25 million in a Series A round in January 2024, led by Paradigm. LabDAO creates a decentralized research infrastructure that allows scientists to share and monetize their work.

• VitaDAO: Raised $30 million in a Series B round in March 2024, led by Pantera Capital. VitaDAO funds decentralized biomedical research, focusing on longevity and healthspan.

• Total Attracted: Approximately $100 million has been invested in DeSci projects. Significant contributions include $30 million from Paradigm and $25 million from Pantera Capital.

5. Decentralized Physical Infrastructure Networks (DePIN)

DePIN focuses on building decentralized infrastructure networks, such as for energy and communications. This narrative is becoming prominent as the need for decentralized infrastructure grows, providing more resilient and accessible solutions for critical services.

The Helium Network expanded its user base by 1.6 million addresses in the first quarter of 2024, highlighting the increasing demand for decentralized connectivity solutions.

Top Deals:

• Helium Network: Raised $50 million in a Series C round in February 2024, led by Andreessen Horowitz (a16z). Helium is a decentralized wireless network that allows devices to connect to the internet using blockchain technology.

• EnergyWeb: Secured $45 million in a Series B round in April 2024, led by Blockchain Capital. EnergyWeb focuses on creating a blockchain-based energy grid that promotes clean energy usage.

• Total Attracted: Around $150 million has been directed towards DePIN projects. Notable stakes include $50 million from a16z and $40 million from Blockchain Capital.

These are the top 5 VC investment narratives in 2024, reflecting the current trends and strategic interests within the crypto space.

This article is the second in our series of updates on the increasing investment activities this year. All the data points to a huge fundraising bull run underway. So, don't miss the train to Wall Street, and I remind you about the unfair advantage you can get on InnMinds pitch sessions.

Stay tuned!

Read also:

https://blog.innmind.com/alphamind-by-innmind-the-fair-launchpad-for-true-web3-community/

https://blog.innmind.com/supply-side-tokenomics-supply-distribution-optimization-for-price-performance-cost-efficiency/

The past few months have really been a rollercoaster for Web3 entrepreneurs. Market uncertainty and volatility have challenged even the most resilient Crypto enthusiasts. But don't lose hope! While some may be panicking and giving up on their fundraising journey, , slick and sneaky venture capitalists are seizing this opportunity to fill their bags and double down on their investments.

Despite a challenging 2023, the first quarter of 2024 has shown promising signs of recovery in Web3 venture funding. According to Crunchbase, Web3 startups raised nearly $1.9 billion in Q1 2024, marking a 58% increase from Q4 2023!

While still below the highs of 2021-22, this uptick indicates that the funding bull run is starting to gain momentum!

So here I am, urging to inform you which doors to knock on if you don't want to miss the train to Valhalla. Here’s a look at the top 15 most active crypto VC funds this year, each playing a crucial role in driving innovation and growth within the cryptocurrency and blockchain sectors.

1. a16z (Andreessen Horowitz)

Based in Menlo Park, California, a16z is a leading venture capital firm known for its broad investment portfolio across various technologies, including AI and gaming. The firm is renowned for its comprehensive support to startups, offering not just capital but also expertise and networking opportunities.

Focus: Broad tech investments including AI and gaming within the crypto space.2024 Activity: Led a $75 million investment pool for the Speedrun 2024 Accelerator Program, supporting pre-seed gaming startups. Total investments in 2024 amount to approximately $250 million​ (Andreessen Horowitz)​​ (Mobile Games Insider)​​ (Multiplatform)​.

2. Pantera Capital

Pantera Capital, established in 2003, is one of the first U.S.-based Bitcoin investment firms. The firm operates globally, focusing exclusively on blockchain technology and digital assets, supporting projects from early to growth stages.

Focus: Blockchain technology, digital assets, and DeFi.2024 Activity: Invested $50 million in the Series B funding round of Stafi Protocol, a decentralized staking platform. Total investments in 2024 are about $200 million​ (CoinLaunch)​​ (Crowdcreate)​.

3. Coinbase Ventures

The venture arm of Coinbase, headquartered in San Francisco, focuses on strategic investments to drive the growth of the crypto ecosystem. Known for backing early-stage startups, Coinbase Ventures leverages its industry position to provide significant market advantages to its portfolio companies.

Focus: Strategic investments in blockchain and crypto startups to drive ecosystem growth.2024 Activity: Invested $30 million in the Series A round for Parcl, a blockchain-based real estate platform. Total investments in 2024 are around $300 million​ (Pink Brains)​​ (Crunchbase News)​.

4. Polychain Capital

Founded by Olaf Carlson-Wee, Polychain Capital is a San Francisco-based hedge fund that manages digital assets and invests in blockchain-based companies. The firm is noted for its aggressive yet well-researched investment strategy in the blockchain sector.

Focus: Blockchain-based companies and technologies, DeFi, and infrastructure.2024 Activity: Led a $40 million Series C round for Aztec Network, a privacy-first layer 2 solution for Ethereum. Total investments in 2024 are approximately $180 million​ (CoinLaunch)​.

5. Galaxy Digital

Galaxy Digital operates out of New York, offering comprehensive digital asset management services. The firm is heavily involved in blockchain infrastructure, DeFi, and other innovative financial technologies, making significant contributions to the crypto industry's growth.

Focus: Digital assets, blockchain infrastructure, DeFi, and more.2024 Activity: Invested $35 million in the Series B round for Axelar, a decentralized interoperability network. Total investments in 2024 are around $220 million​ (CoinLaunch)​.

6. Lightspeed Venture Partners

With a strong presence in Silicon Valley, Lightspeed Venture Partners is known for backing innovative companies from their early to late stages. The firm supports a diverse portfolio across several sectors, including blockchain technology.

Focus: Early to late-stage investments in blockchain technology and platforms.2024 Activity: Led a $45 million Series A round for Space and Time, a decentralized data warehouse. Total investments in 2024 are about $190 million​ (Rock'n'Block)​.

7. Blockchain Capital

Based in San Francisco, Blockchain Capital is a pioneer in the crypto VC space. The firm focuses on tokenization and stablecoins, playing a crucial role in developing the blockchain ecosystem through its thoughtful investments.

Focus: Tokenization, stablecoins, and blockchain infrastructure.2024 Activity: Invested $50 million in the Series B round for MoonPay, a leading crypto payments infrastructure. Total investments in 2024 are approximately $170 million​ (Crowdcreate)​.

8. Dragonfly Capital Partners

Dragonfly Capital operates globally with a focus on early-stage crypto startups. The firm aims to bridge the gap between traditional capital markets and blockchain technology, supporting transformative projects in the crypto space.

Focus: Early-stage crypto startups and blockchain technology.2024 Activity: Led a $30 million Series A round for Rarible, a decentralized NFT marketplace. Total investments in 2024 are around $160 million​ (Crowdcreate)​.

9. Multicoin Capital

Based in Austin, Texas, Multicoin Capital is a thesis-driven investment firm managing both a hedge fund and multiple venture funds. The firm is dedicated to investing in cryptocurrency, blockchain, and tokens in private and public markets.

Focus: Crypto, blockchain, and tokens in private and public markets.2024 Activity: Invested $25 million in the Series A round for Syndicate, a decentralized investment protocol. Total investments in 2024 are about $140 million​ (Startup Savant)​.

10. Draper Associates

Founded by Tim Draper, Draper Associates is a seed-stage venture fund based in Silicon Valley. The firm has a history of investing in industry-transforming companies and has shifted its focus to include blockchain-based startups.

Focus: Disruptive blockchain technologies and early-stage startups.2024 Activity: Led a $20 million Series A round for Solana Pay, a decentralized payments protocol. Total investments in 2024 are around $130 million​ (Crowdcreate)​.

11. Digital Currency Group (DCG)

DCG, headquartered in New York, specializes in supporting blockchain companies from early-stage to established entities. The firm also operates key industry platforms like Coindesk and Genesis Trading, further embedding itself in the crypto ecosystem.

Focus: Early to established blockchain companies.2024 Activity: Invested $50 million in the Series C round for Chainalysis, a blockchain data analysis platform. Total investments in 2024 are approximately $210 million​ (Crowdcreate)​.

12. Hashed

Hashed is a global early-stage investment firm based in Seoul, South Korea. The firm is committed to its role as a partner to its portfolio companies, fostering innovation and growth within the blockchain and Web3 sectors.

Focus: Blockchain and Web3 technologies, early-stage investments.2024 Activity: Led a $40 million Series A round for Mysten Labs, a blockchain infrastructure company. Total investments in 2024 are about $150 million​ (Rock'n'Block)​.

13. Framework Ventures

Based in San Francisco, Framework Ventures is known for its collaborative approach with founders to build token-based networks. The firm focuses on DeFi and blockchain-based projects, providing both capital and strategic support.

Focus: DeFi and blockchain-based projects.2024 Activity: Invested $35 million in the Series B round for 0x, a decentralized exchange protocol. Total investments in 2024 are around $170 million​ (Crowdcreate)​.

14. Shima Capital

Shima Capital, based in San Francisco, focuses on early-stage blockchain startups and disruptive technologies. The firm is dedicated to fostering innovation within the blockchain ecosystem.

Focus: Early-stage blockchain startups and disruptive technologies.2024 Activity: Led a $30 million Series A round for Project Galaxy, a credential data network. Total investments in 2024 are approximately $140 million​ (Crowdcreate)​.

15. Morningstar Ventures

Headquartered in Dubai, Morningstar Ventures specializes in digital assets and blockchain technology. The firm aims to drive the adoption of blockchain technology through strategic investments and active involvement in building ventures.

Focus: Digital assets and blockchain technology.2024 Activity: Invested $25 million in the Series B round for Star Atlas, a blockchain-based gaming metaverse. Total investments in 2024 are about $120 million​ (Rock'n'Block)​​ (Crowdcreate)​.

These VC firms continue to play a pivotal role in driving innovation and growth within the cryptocurrency and blockchain sectors,  ensuring the ongoing development of the digital asset ecosystem. However, these are just the top 15 among hundreds of funds that are waking up and now actively looking to invest in promising projects.

If you're a founder seeking quality and engaged VC funds for fundraising, a good place to start is InnMind's VC database. Right now the easiest unfair advantage you can get is to participate in our pitching sessions and get exposure to the most active funds in the industry.

Read also:

https://blog.innmind.com/supply-side-tokenomics-supply-distribution-optimization-for-price-performance-cost-efficiency/

https://blog.innmind.com/web3-marketing-how-to-dock-to-the-untapped-potential/

We’ll also share examples, illustrating principles and concepts, of token utility design, and describe solutions for various token use cases, helping to better understand its possibilities and potential in different industries and projects.

This guide will help you develop and implement a token utility strategy based on examples and best practices from the web3 market. Additionally, we emphasize the importance of careful planning and analysis in the development of token utility to ensure its effectiveness and deliver maximum value to users.

Do all crypto projects need the token?

Tokenization, or implementation of tokens in business models, has become a popular way for many web3 and crypto projects to raise funds (incl. Seed funding from crypto VCs and public token sale), build community, and incentivize user participation.

However, it is important to recognize that not every crypto project necessarily needs a token to fulfill its purpose or achieve success. Moreover, having a token just to raise funding more easily during the crypto bull market often leads to a future economic collapse of the project.

Tokens are typically created as a part of blockchain ecosystems, providing utility within specific platforms, applications, or networks. They serve different functions, such as granting access to services, facilitating transactions, and incentivizing user engagement. While tokens can be an effective tool for many projects, they are not always irreplaceable for the functionality or viability of every crypto venture.

Some projects require tokens for their promotion and direct operation of the project itself. For example, GameFi projects need a token to facilitate in-game purchases and regulate the gameplay, but for all decentralized finance projects, a token is a way to attract funding and stimulate liquidity.

Other projects may be better off without a token if their primary focus lies outside blockchain technology. For instance, if a project's core objective is to develop a technology or software that is unrelated to cryptocurrency or decentralized finance, creating a token may not provide any additional value or enhance the project's offerings. For instance, projects like marketplaces for NFT or any project in SocialFi don't necessarily need tokens. In such cases, resources and efforts might be allocated towards building and improving the core technology rather than developing, managing, and maintaining a token.

The decision to issue tokens should be considered from the perspective of investors, community members, and product users who will invest in or use the tokens. It could be preferable to not issue any tokens at all if their presence detracts from the value or experience for these stakeholders in comparison to what they could have received.

Legal, regulatory, and compliance considerations must also be carefully considered before developing a token. Issuing tokens could expose a project to different legal requirements and regulatory attention, depending on the jurisdiction. Compliance with regulations like securities laws is difficult and time-consuming, and there might be severe consequences in case of charges: prohibition on conducting business, delisting, fines, and others. Therefore, initiatives with tight rules or those working in resource-constrained areas might decide against developing a token because doing so could add needless legal complications.

So, no, not every project needs to have its own token. But if it does or plans to have it, the project team should carefully consider its utility.

What is token utility?

Token utility refers to the usefulness or value of a token within a particular ecosystem or platform. It describes how the token can be used and what benefits or privileges it provides to its holders.

The utility of a token can vary depending on the project or platform, but commonly includes functions such as profit sharing, payment for goods or services, access to exclusive features or content, staking prizes, voting rights, or participation in a decentralized governance system.

The token utility is an important factor that determines its demand and hence its market value.

Why is it important to design a token utility?

Designing a token utility is crucial for various reasons:

• High-quality and user-friendly token utility contributes to attracting investors, as well as liquidity to the protocol;

• The token utility can help attract user flow to the protocol, significantly reducing marketing costs;

• Tokens can incentivize users who contribute productively to a network with financial rewards and/or equity, promoting long-term relationships.

By considering these factors and designing a utility that solves real-world problems and provides genuine value, token projects can increase their chances of success and establish themselves in the market.

1. Identify the purpose: Determine the specific purpose of the project token within the project ecosystem. Consider whether it will be used as a means of payment, for access to certain features, for voting rights, as a loyalty reward, or any other specific utility.

2. Functional utility: Define the functions and capabilities that the token provides within your project. For example, it could be used for fee discounts, access to premium features, or as a staking mechanism for governance rights. It’s important to remember that token's different functions should not contradict or limit in any way.

3. Best practices: Look at the most commonly used utilities in projects similar in business model and purpose. This stage allows us to identify the best and most in-demand practices in the market, as well as understand the mechanism of their application.

4. Long list: Create a long list of all utilities used in the market. Creating a long list will help determine the main and additional utilities based on project criteria. The long list may include utilities from other projects as well as your ideas.

5. Pros and cons: For each utility, list its positive and negative aspects for the project. By weighing all the pros and cons, you can determine to what extent the utility's usefulness outweighs its costs and risks.

6. Utility Division: The next step is to identify the core utilities that are most important for the project at this stage. Core utilities are the essential utilities that are most important for the functionality of the project and should be prioritized for resource allocation and funding first. The remaining utilities can be put into an additional utilities group, which can be added as the project develops.

7. Incentivize token holders: Create mechanisms, incentivising token holders to hold and use the token. This can include staking rewards or discounts on project-related products or services.

8. Avoid excessive speculation: Design token utility in a way that discourages excessive speculation and promotes real-world usage. This can be achieved by setting reasonable fees, ensuring regular token burns, or implementing other mechanisms that maintain a balance between supply and demand.

9. Transition to tokenomics: After creating the utility, the next step is to design tokenomics: calculate and specify token allocations, vestings, and reward systems, as well as model all of the above to better understand the number of tokens required for the project.

Important Tokenomics Factors

Among things you should pay attention to while designing your token economy & token utility, keep in mind the following:

• Control of inflation and deflation: It is important to incorporate mechanisms to address inflation and deflation in the utility token, enabling the protocol to regulate them. For example, it can be a good idea to include utilities such as token burning and fixed issuance, which would not only control the circulating supply of tokens but also impact their price in case of a decline.

• Incentives for token holders: It is important to consider not only incentives for purchasing tokens but also for holding them. For example, a good incentive could be earning rewards through token staking or gaining access to various protocol functionalities and products in exchange for tokens. Having incentives for token retention is crucial to avoid speculation and constant token dumping into the market.

• Economic Model: When creating a utility token, it is crucial not only to outline the main provisions and mechanisms of operation but also to model it. By creating an economic model for their utility, a project has the opportunity to understand all the intricacies of its functioning and avoid mistakes during the launch. The economic model will demonstrate the mechanism of token redistribution and the sources of rewards for users, which will help determine allocations in the future.

• Sustainability loop: It is important to effectively align the project's mechanism with the utility token to ensure a spiraling growth of the protocol and prevent situations where there is a one-time economic downturn and token price decline.

Top 5 token utility mistakes to avoid

1. Absence of purpose for the token: If you don't fully understand why your project needs a token and whether it is necessary at all, it is better to postpone its creation and issuance until better times. The project can exist without a token, but it cannot exist with an underdeveloped token, because the token is the face of your project. If it is not well thought out or useless, investors will avoid your project. It is not as scary to delay the creation of the token as it is to create a bad token and then cancel it, sending it for further development. This will significantly affect the reputation of the entire project.

2. Lack of long-term plan: Just releasing a token is not enough. It is necessary to have a plan for maintaining and using it for several periods ahead, especially after the token is released into the market and a large portion of tokens are distributed to investors.

3. Unplanned worst-case scenarios: When token price increases and investors enter the project, it is great, sadly, it will not always be the case. There will be periods when the price drops and tokens are dumped onto the market in large quantities, and it is crucial to consider backup ideas for the token and determine the best course of action in such a situation.

4. Legal Issues: Lately, there have been an increasing number of cases of misunderstanding of securities laws, so it is crucial for projects to carefully consider this aspect of their token and create utility in accordance with the legislation.

5. Half-baked utility: You should not create a utility that you are not completely sure about or don't fully understand how to implement. All token utilities should be clear to you and the target audience, so there is no need to make them more complicated.

Example of designing token utility

Let's consider that we have a trading platform named “Fantradic”: it plans to launch its own token to attract funding from investors and increase user activity on the platform.

1. To begin with, it is worth defining the strategy of the project itself and linking it to the token. For our trading platform, the main task is to attract liquidity and funds from investors. Therefore, the token should be directly linked to the protocol's goals and serve as a means to attract funds.

2. The next thing we, as a trading platform, want to do is look into the most popular trading protocols on the market that have already launched their tokens. Specifically, we would pay attention to GMX, gTrade, Uniswap, dydx, and their tokens, as they are the most successful projects in this segment with high token demand.

3. After reviewing major market players, we look at all the utilities found:

• Profit sharing

• Governance

• Reduced fees

• Access to the private chat with other investors

• Rewards for traders

• Rewards for liquidity providers

1. Now, for each utility, we list the pros and cons in terms of implementation and operation for our project, for example:

• Profit sharing:“+” Increases demand for the token“-” Faces legal restrictions from SEC laws

• Rewards for traders:“+” Increases traders interest in the platform“-” Dilutes token share, may lead to sudden market dumping and decrease in token price

2. After weighing all the risks and benefits, we eliminate utilities that do not suit us in terms of costs and negative aspects and divide the remaining ones into core and additional utilities.

Core utilities include profit sharing, governance, traders’ rewards, and liquidity providers’ rewards. In the core utilities, we define these goals as they play a dominant role for us and we want to allocate more resources to their achievement, as they go hand in hand with the tasks of our platform.

Additional utilities would include reduced fees and access to private chat with other investors. These ideas have been included in additional utility as they are not a priority for us, but we understand that they can still play an important role for our token. However, they currently hold the second position on the implementation priority list.

3. As a result, you get a designed token utility. Next, it is necessary to consider the mechanisms for implementing these utilities, as well as to determine the number of tokens, allocations, and vestings.

Conclusion

The token utility is undoubtedly a crucial aspect of any token in the cryptocurrency space. It serves as the backbone for the functionality, value, and purpose of tokens within a specific ecosystem. However, it is important to note that each project is unique and requires a tailor-made approach to token utility.

While some projects may emphasize the use of tokens as a means of access, others might focus on governance, rewards, or even as a medium of exchange. The design and implementation of token utility heavily depend on the goals, objectives, and target audience of the project.

Token utility plays a vital role in promoting user engagement, incentivizing participation, and ensuring sustainability in a platform. It offers users various benefits such as discounted fees, voting rights, exclusive services, or access to special features, consequently fostering a stronger sense of community and enhancing user experience.

In conclusion, while token utility forms an integral part of any project within the crypto industry, it is imperative to recognize that each project is unique and requires a customized approach in terms of designing and implementing token utility. By carefully considering the project's objectives and target audience, a token utility can be leveraged to enhance user engagement, incentivize participation, and ultimately contribute to the project's overall success.

Read also:

https://blog.innmind.com/what-is-tokenomics-and-why-your-startup-cant-ignore-it/

https://blog.innmind.com/2024-crypto-growth-hacks-essential-strategies-for-web3-token-success/

https://blog.innmind.com/web3-startup-valuation-metrics-what-you-need-to-consider/

It’s time to show you what the team our InnMind has been working on.

Being a part of InnMind community, you know who we’re and what we’ve built over the years. The leading acceleration platform for web3 startups, VC funds & experts with over 7 years in the market, 30’000+ web3 founders in the community and over $80 mln worth of early-stage funding facilitated in our network.

Through these years we’ve learned: true support extends beyond funding; it's about building a solid foundation from concept to community, especially in challenging market conditions.

With great pride and confidence we officially announce our cutting-edge new web3 launchpad, set to go live in Summer 2024!

It’s called “AlphaMind” and we eagerly anticipate your support.

AlphaMind is a launchpad, built by founders for founders. It is about bringing back community power & value to excellent web3 startups, “Alphas”.

Committed to building the TRUE community of early adopters, backers, supporters, and fair distribution of tokens among the most engaged & contributing peers.

It redefines the existing launchpad model by allowing its members to significantly contribute to project development from the earliest stage, through our proprietary KARMA system.

Think of us as your all-in-one go-to, navigating the Web3 wilderness, covering everything from improving your tokenomics, accelerating VC fundraising, intros to the best partners, launching your token with the most loyal community, to smashing your post-launch performance & GTM goals.

Now you might be thinking, what’s going to happen to InnMind? Rest assured, we will continue to support web3 entrepreneurs by providing access to investors, partners, experts, early adopters, and corporate players through our deal-origination & acceleration platform. Our commitment to delivering the same level of excellence remains unwavering. AlphaMind is here to expand our support to bright founders even further down the TGE and Post-TGE road allowing us to become your full web3 startup cycle partner.

Thank you for your continued trust and support. Stay tuned for more updates as we embark on this exciting journey with AlphaMind. Together, we will shape the future of innovation.

For more information, please visit our websites:https://alphamind.co/| https://innmind.com/

In the complex landscape of Web3 investing, deep analysis is not just a perk—it's a necessity. A single oversight can lead to monumental setbacks. It's no wonder investors often appear reserved; they're not just funding startups, they're meticulously weighing potential against risk. This article highlights innovative AI tools from the InnMind platform, designed to transform how investors engage with and manage Web3 projects, ensuring smarter, safer investment decisions.

AI Tools Revolutionizing Investment Strategies:

CipherTrace
A Mastercard company, CipherTrace spearheads blockchain forensics, helping detect and mitigate financial crimes within the Web3 ecosystem. Beyond risk analysis, it offers comprehensive reports on cryptocurrency crimes and geographic risks, enhancing the safety and compliance of blockchain transactions.

Chainalysis
Known for its robust suite of blockchain analysis tools, Chainalysis serves government agencies, financial institutions, and cybersecurity firms across 70+ countries. It provides insights into blockchain transactions, regulatory compliance, and market trends through blogs, podcasts, and detailed reports.

Elliptic
Pioneering in cryptoasset risk analysis, Elliptic's platforms enable businesses to preempt financial crimes involving cryptocurrencies. As a global leader in compliance solutions, Elliptic also offers educational training and customer support, reinforcing its clients' defense mechanisms against illicit activities.

Nansen
Nansen's analytics tools delve into blockchain data, providing key business intelligence for funds and crypto teams. From investment insights to monitoring ecosystem growth, Nansen's "Query" feature helps users safeguard and scale their protocols efficiently.

Quant.Network
Quant.Network is famed for developing Overledger, a platform fostering interoperability across diverse blockchains. This technology allows seamless transactions across multiple chains, offering a unified interface for an enhanced user experience.

Set Labs
Set Labs introduces an automated strategy platform for crypto investments, enabling users to create, manage, and automate their trading strategies on the Ethereum blockchain. Its notable feature, the Set Protocol, aids in the dynamic rebalancing of assets, optimizing investment performance continuously.

**SolidusLabs**This firm offers AI-driven surveillance and risk management solutions tailored for digital asset trading. Targeting exchanges and financial institutions, SolidusLabs equips stakeholders with tools to detect market manipulation and compliance breaches effectively.

Flipside Crypto
Flipside Crypto provides analytics on crypto market data, uncovering profitable opportunities through its diverse range of applications and dashboards. By analyzing community engagement and social media activity, it offers valuable insights into blockchain projects and their market dynamics.

The Tie
As a leading digital asset information provider, The Tie aggregates vast data volumes to offer actionable insights to traders and investors. Its tools analyze market sentiment and trends, aiding stakeholders in making informed decisions amidst the volatile crypto market.

Alvara Protocol
Alvara Protocol revolutionizes fund management through its new token standard, ERC-7621, enabling dynamic rebalancing and issuance of unique LP tokens. This standard promises to streamline on-chain fund management and investment processes.

ChainAware
ChainAware offers AI-powered fraud detection tailored for the crypto industry. Its predictive technology assesses wallet behaviors to preemptively alert users about potential threats, enhancing security with a straightforward integration process.

Web3 investing is rapidly evolving, driven by these pioneering tools on the InnMind platform. Each tool not only enhances the investment process but also ensures a higher degree of security and compliance, empowering investors to navigate the complex Web3 landscape confidently.

Join InnMind today, and tap into a world where investing meets innovation. Discover hundreds of tools and resources designed for Web3 investors and VCs eager to stay ahead in the game.

Read also:

https://blog.innmind.com/2024-crypto-venture-capital-landscape-bitcoins-record-peaks/

https://blog.innmind.com/web3-marketing-tools-revolutionizing-digital-strategies/

Traditional Web3 marketing uses these tools:

• Community management, which is about sending the same message to everyone

• Buying articles on the crypto media to create brand awareness, which then shows the same content to everyone

• Banners in the crypto media show the same banners for everyone

• Crypto influencers are sending the same message to everyone

• Quest systems, which reward the users, but this does not create any binding to the brand

You probably noticed that all these approaches send everyone the same message. We call it the "1930s marketing approach" because, at that time, marketing was mainly via newspapers, sending the same message to everyone, and then on the shopping floor (on the website), everyone saw the same message again.

This method works, but it's very costly. Primarily, it's very costly for young Web3 startups, which have two challenges:

• build user base

• support and accelerate the token price

However, more effective ways exist to convert clients and generate revenue. And it's nothing new - it is based on transferring the Web2 marketing approaches into the Web3 marketing:

• use intention-based targeting to get visitors to the website

• use 1:1 targeting on the website

It's no longer "everyone gets the same message and visits the same shopping floor." But "everyone gets the personalized message and visits a personalized shopping floor."

It's about entering intention-based marketing instead of mass marketing. As we are in the blockchain, combining intention-based marketing with blockchain analytics is natural. Every user is coupled to the wallet, and these wallets tell more about the user's intentions than the users expect.

But are the intention-based marketing approaches something new? Not at all. That's how Web2 marketing works. The difference is that Web2 user segmentation is based on the search and browsing history, which doesn’t have high predictive power. However, in Web3, we have wallet histories, which have very high predictive power.

Let's analyze these transformational marketing approaches step by step. Let's examine how to convert every Web3 project into a 1:1 marketing powerhouse.

Traditional Web3 marketing

Traditional Web3 marketing is crypto media, banners, and influencer-based. But is this a practical approach, i.e., does it lead to user conversions?

First, let's ask the question—what is the cornerstone of user conversions? As we learn in any MBA marketing program, it's personalized messaging, 1:1 targeting, and 1:1 marketing.

But how much of this textbook's best practices are used in Web3 marketing? Let's dive in:

Publishing media articles costs a lot of money and has nothing to do with personalized targeting. It enables general brand awareness and delegates the trust of the media publishers to the Web3 projects. It's a supporting measure but a very costly supporting measure.

The other approach is using **banner ads **in crypto media; however, the message is the same for everyone in the banner ads. Every potential website visitor will get the same message independently of his intentions. At the same time, banner ads offer some segmentation capabilities, too—different crypto media have different consumers. This enables some personalized targeting.

Using the influencers costs even more of the spare startup funds

• usually, a project needs from one influencer multiple tweets and

• A successful campaign needs at least 15-20 influencers

But influencers have definitively nothing to do with 1:1 marketing:

• First, we don't know who the influencers' followers are

• Second, influencers send general messages to their audience, i.e., the same tweet to all followers.

Finally, when we get users to the website, Web3 projects offer all users the same message on their websites. It's like going into a traditional shop, and every visitor sees the same shopping floor. Web3 marketers might think that's OK, but we believe there are better ways to convert users.

This marketing approach results in low conversion because it does not resonate with visitors' intentions. It also costs startups a lot of money.

What would be the alternative? Let's return to Web2 and examine first how Web2 marketing works.

How does Web2 marketing work?

Here are two paradigms of the Web2 marketing:

• Intention-based marketing - users get intentions-based messages through marketing media channels.

• Users have personalized user interfaces. For example, compare your Amazon.com user interface with your friend's. They differ because your and your friends' purchase histories and intentions differ.

It's no longer the "1930s marketing" style where clients get the same message and see the same shopping floor. It's about targeting users with intention-based messages and offering personalized shopping floors - personalized websites.

Intention-based marketing means targeting users based on their intentions, i.e., not just based on attributes like geolocation, age, or interests, but their intentions because intentions lead to buying decisions.

How does Web2 calculate inventions? It's based on users' search history and website visits (tracked via thousands of different trackers). However, this data does not allow exact predictions of user intentions—users' search history can be triggered by arbitrary triggers like website visits. However, it still allows a certain level of accuracy and intention calculation.

If you use Google Ads or Facebook Ads, you will not have access to these thousands of intention-based micro segmentations. However, the big Web2 platforms have access to this data and use it for targeting. It's just a question of the ad budgets.

Personalized websites mean that users see customized websites that resonate with their intentions. The easiest way is to test this on Amazon.com - just compare what you see with what your peers see. This is not just Amazon.com - that's every Web2 company using personalized websites.

If we compare now Web3 marketing (mass marketing) with Web2 marketing (intention-based marketing), then unit costs are much better for Web2:

• High user acquisition costs in Web3 - because sending the same message to everyone will not convert new users easily

• Low customer lifecycle revenues in Web3 are due to less cross-selling or up-selling, and everyone gets the same message.

An Inefficient Web3 marketing approach translates into much higher client acquisition costs than for Web2 projects. 20,000—330,000 Web3 projects face this issue today. What can they do?

What are the alternatives for Web3?

The alternative is to do the same what the Web2 marketing is doing!

• Use intention-based marketing to get users to the website

• Use 1:1 targeting on your website

Intention-based targeting to get users to the Website

When we have users' blockchain addresses, then we can calculate a lot per user:

• user experience

• user willingness to take risk

• which protocols the user has used in the past

• which categories the user has used in the past

• and users' intentions, i.e., their subsequent probable actions

User intentions are calculated either

• **based on their past behavior **- i.e., if the user borrowed in the past, then he will borrow in the future, too

• based on their **future predicted behavior **- i.e., predicting the subsequent actions of the users

Web2 intentions and Web3 intentions have significant differences. Web2 intentions do not have high prediction accuracy because they are calculated based on search history and website visits, which are pretty soft data.

Web3 intentions are calculated based on on-chain behavior and have a much higher prediction rate. This is because if you have to pay gas for your transactions, i.e., there is “proof of work” for your transactions, users do the transactions they need. There are no “social media,” “website visits,” or “search history” distractions—but it's clean user data, resulting in high predictive accuracy.

The user intentions mean that, for example, Web3 projects can target:

• Compound Borrowers or Aave Borrowers or people who will Borrow in the future

• Compound Lenders or Aave Lenders or people who will Lend in the future

• and then can combine this with the experience or with the risk willingness of the users

1:1 Targeting on your Website

Every Web2 website is personalized based on the client's intentions. Compare what you see on Amazon with your peers—each will have a different landing page.

Web3 websites, however, are mass targeting sites - the same message for everyone.

What about converting Web3 websites into personalized websites based on the "personalized banners"? The key idea is - when you get users to your platform (website, dapp or bot) - have a conversation with your users:

• For example, "Compound Borrower," i.e., users who borrowed earlier at Compound will get a specific message

• For instance, "Lido stakers" - i.e., users who staked at Lido will get another personalized message

• For example, "Maker borrowers" - i.e., users who minted DAI at Maker will get another personalized message

But not only this:

• Connect the 1:1 targeting with your rewards system and offer special rewards to the new joiners

• Or provide special rewards to the existing users for cross-selling

Customized banners are configurable via the user interface; marketers can change them anytime.

Here is an example from the ChainAware.ai website:

Here is how the configuration looks for the “Go Premium”:

Web3 projects can define:

• their stylesheets

• different personalized banners per landing page

• choose where to place the 1:1 targeting banners

• define us many personalized banners for as many conditions as they would like

The result is that no longer will "everyone see the same shopping floor" but "everyone will see a personal shopping floor" based on his transaction history.

Next steps

Here are our recommendations:

Projects with advertisement restrictions

If you are a DEX or Borrow/Lend project, you have advertisement restrictions, meaning your choice of ad systems is limited. If this is true, you must stick to the "old methods"—crypto media, banners, influencers, and quests. It would help if you tried to choose the most resonating with your potential users.

**Step 1. **You can still use interest-based targeting to drive users to the website—i.e., target the users whose interests resonate with your offering. You can do this by choosing crypto media that resonate most with your product offerings and placing media articles or banner ads.

**Step 2. **When new users are on the website, use 1:1 targeting messages instead of "1930s style of same shopping floor for everyone".

Projects without advertisement restrictions

You have no advertisement restrictions if you are not a DEX or Borrow/Lend project.

Step 1. Start to generate traffic to your website with:

• intention-based wide targeting and

• intention-based narrow targeting

Step 2. When users are on the website, you can target them with 1:1 messages based on their address history and intentions.

What is the success rate of this method?

You can calculate 2x effectiveness improvement on every step:

• 2x more visitors to your website with the same budget

• 2x more visitors to connect their wallets than without 1:1 targeting

• 2x more connected wallets to transact than without 1:1 targeting

This method brings your Web3 marketing unit costs to the same level as Web2. This means you can compete with Web2 platforms regarding user acquisition costs.

On the cash flow side, this method directly translates into higher client conversion rates, revenues per client, and cross-sales per client.

On the innovation side, It also means you can reduce your marketing budget and allocate more funds to real innovation.

How to get started

Get started with 1:1 targeting and personalized messaging with a special perk for InnMind community from ChainAware with 3 months of free platform use! Mention InnMind in the contact form description to claim the perk & get personalized onboarding!

This and many other perks can be found here.

About the author

Martin is an old guy in Web3 and crypto (Co-Founder of SmartCredit.io and ChainAware.ai). You can reach him via his LinkedIn or directly via InnMind profile.

More Details

• https://chainaware.ai/blog

• https://learn.chainaware.ai

Read also:

https://blog.innmind.com/2024-crypto-growth-hacks-essential-strategies-for-web3-token-success/

https://blog.innmind.com/web3-marketing-tools-revolutionizing-digital-strategies/

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The Evolution Beyond Art

Initially, the NFT craze was fueled by speculative buying, with pioneers like CryptoPunks and BAYC creating exclusive, investment-driven communities.

In 2023, the NFT market witnessed a significant transformation, with a shift from speculative trading to utility-driven collectibles. According to DappRadar, on-chain NFT activity surged 44% from the previous year, averaging 316,614 daily Unique Active Wallets.

Such an increase despite a long bear market indicates a growing interest in utility and community-based projects.

While successful in generating buzz, this model overlooked the creative and intellectual individuals eager to contribute more than capital. The essence of web3, after all, is not just about financial transactions but about creating genuine, engaging communities that offer a sense of purpose and belonging.

A Shift Towards Engaging Experiences

The call for a paradigm shift is clear. No longer should NFTs be mere collectibles; they should be gateways to interactive experiences, integral parts of narratives that users can influence and engage with. The intersection of web3 gaming and NFTs presents an unparalleled opportunity to redefine digital ownership, making it a more active and rewarding experience.

Recent studies have shown a 30% increase in engagement rates for NFT projects offering interactive or gamified elements. Projects integrating these features have not only reported higher retention rates but also a more vibrant and active community, underscoring the potential of gamified NFTs to transform user experience.

One such pioneer navigating this new terrain is CypherClans, a project that merges the intrigue of solving complex puzzles with the thrill of NFT collecting. With a staggering $1 million prize for the first to unravel the mysteries of its 13 clans, CypherClans is not just a game—it's an intellectual odyssey. It rewards creativity, teamwork, and problem-solving, encapsulating the essence of what the next evolution of NFTs could look like.

The Dawning of Intellectual Communities

CypherClans stands as a testament to the potential of NFTs in fostering communities based on intellectual merit. By engaging players in a quest that challenges their intellect and collaborative skills, it creates a vibrant, purpose-driven community. This approach not only revitalizes the concept of NFT communities but also sets a new benchmark for meaningful engagement in the digital realm.

A huge survey by CoinGecko reveals that utility is the #1 reason people buy NFTs, while 68.8% of NFT holders buy-in because of “Becoming part of the community”: they want to join the community of fellow owners around the project. This statistic highlights the shifting interest towards NFTs that offer more than just aesthetic value, emphasizing the demand for intellectual and interactive content.

Similarly, projects like Sorare and Zed Run offer unique takes on community engagement and gameplay through NFTs.

Sorare, a global fantasy football league, uses NFTs for digital trading cards, allowing users to manage a team and compete in leagues.

Zed Run, a digital horse racing platform, uses NFTs to represent ownership of horses, with each horse's attributes and performance history stored on the blockchain.

These projects not only foster vibrant, purpose-driven communities but also set new benchmarks for meaningful engagement, illustrating how NFTs can serve as the cornerstone of intellectual and strategic gameplay.

In addition to CypherClans, last cycle’s projects like Axie Infinity and The Sandbox have also been instrumental in pushing the boundaries of NFT integration within gaming, offering players a blend of entertainment, creativity, and economic opportunity. These platforms demonstrate the diverse possibilities of web3 gaming, from battling and breeding digital creatures to building and monetizing virtual landscapes.

The Future of NFT Gaming is …?

Forecasts by Fortune Business Insights predict that the web3 gaming sector will grow by 300% in the next years, with NFT integration playing a pivotal role. This growth is attributed to the increasing demand for immersive, interactive digital experiences that blend gaming with real-world value.

As we look to the future, it's evident that web3 gaming is on the cusp of a major breakthrough. With the crypto market showing signs of an impending bull run, projects that leverage NFTs for more than just speculation are poised to lead the charge. The anticipation around upcoming launches of new conceptual projects is a glimpse into the growing appetite for games that offer more than just digital ownership—they offer a chance to be part of something larger, a community of like-minded individuals driven by the pursuit of adventure and intellectual achievement.

In 2024, as we stand on the brink of this new era, the fusion of NFTs and gaming is not just an exciting prospect but a reality unfolding before our eyes. The journey from speculative assets to dynamic components of web3 gaming underscores a broader shift towards a digital ecosystem that values creativity, engagement, and community above all.

As we continue to explore this uncharted territory, one thing remains clear: the intersection of NFT artistry and gameplay is just beginning, and its potential is as boundless as the digital worlds we are yet to create.

Read more:

https://blog.innmind.com/how-to-design-token-utility-research/

https://blog.innmind.com/supply-side-tokenomics-supply-distribution-optimization-for-price-performance-cost-efficiency/