Aug 18, 2023
Thought-Leadership
So you want to start a Crypto Company?
by Orderly Network
# Intro: A Turbulent Voyage Starting a Crypto Company is Hard
First off, starting a company is hard. Starting a crypto company? That’s not just hard, it’s extremely hard.
You’re literally trying to build a business on top of technology that, for the most part, is still in the Beta. And let’s be honest, how many real world, validated success stories are there out there to learn from?
Add to that, the looming shadow of uncertain legislation. One misplaced word on social media, and you might find the SEC at your door.
Plus, this industry moves so fast, it makes the information in books obsolete almost as soon as it’s printed.
And then there’s tokenomics. Not only do you have to grasp the complexities of traditional economics, but you also have to master this new, perplexing concept.
In the traditional business world, you worry about the odd email hack or credit card fraud. In crypto, you’re faced with security threats that can totally annihilate your business and drain your customers’ funds in the blink of an eye.
You’ve also got a community of people who have serious skin in the game, emotions running high and the very real potential for dangerous governance votes. On top of that, anyone can legally — and is actually encouraged to — copy your project. You could even fall prey to a vampire attack from a new competitor.
Then there’s the self-custody of company funds, and the challenge of finding talented individuals to hire in such a niche industry. Forget about hiring a traditional marketing company, it simply won’t work here. And paid ads? The crypto world despises them.
Your timing needs to be impeccable when launching a token. Launch an airdrop that’s too small and you’re inviting backlash.
The market can and does go through deep winters where activity just dries up. And remember, the blockchain never sleeps. So say goodbye to your weekends.
Not to mention, your family and friends may not understand and criticize your choice. You will be told It’s an industry for ponzi and fraud.
So why on earth would anyone want to build in this space?
Why build here? Short answer — Because it’s the most unique and rewarding industry on earth.
Where else do you find people actively promoting your business like they’re cheering on their favorite soccer club? In crypto, you don’t have customers, you have die hard fans. The passion is simply exhilarating.
A token, as much as people love to argue about its utility, gives holders a feeling of ownership. Dare to go against governance? Good luck keeping your company afloat.
It’s probably the only industry where it’s exciting to give away 80% of your company. It’s an opportunity to reward your most loyal and early supporters.
Some of the most successful crypto companies haven’t spent a dime on marketing. You’ve got thousands of people keeping you accountable, sharing ideas, generating content, crafting memes, and continually pushing you forward.
Tokens are extraordinary. They can be punishing, but they can also be extremely rewarding.
Web2.0 is stuck in a rut. It’s all been swallowed up by monopolies and turned into another product that plugs into what you’re already using. But with Web3, you’re looking at an open canvas. Everything is fresh and has the potential to completely revolutionize the internet and the entire financial system.
In the crypto world, you are instantly global. Someone in a tiny town, without any formal business infrastructure, can establish a financial system that the entire world can plug into. The technology literally has money flowing through it.
Only those who are truly immersed in the crypto world understand the potential of using a crypto wallet to sign in, or how quick it is to send money internationally. It’s borderless. And frankly, it’s so much better than a bank.
The challenges in this industry are plentiful, but so are the opportunities. Coming up with a product idea isn’t the hard part. There are problems waiting to be solved everywhere. And your competitors? They’re on a level playing field with you. There’s no 10,000-person R&D department spending billions of dollars competing against you.
Got a great idea? Attend a hackathon, chat with the crypto community on Twitter, share what you’re building. If it’s any good, funding will follow. There’s no other industry where so many grants are available to such small companies. Most large crypto protocols offer some sort of grant funding. Blockworks currently lists over 323 grant programs, and this is deep crypto winter.
And remember, you are still early to the game. Ignore the bitcoin price. The price isn’t a reflection of how early this technology is.
So yes, starting a crypto company is extremely hard. But the rewards? They can be out of this world.
At Orderly, we’re builders ourselves, so we understand the challenges you face and we’re here to simplify your process. Need liquidity? Access our shared liquidity layer with ease. Want to boost your revenue? Tap into our infrastructure which offers support for spot and perps trading — one of the most profitable products in crypto history. Our SDKs are also ready to get you started right away.
Join our Discord community and let’s chat — we’re excited to help you succeed.
