The Need to Build Consumer-Centric Web3 Products

The crypto market is still recovering from a bearish hangover. Macroeconomic conditions, Fed news, and the crypto liquidity crisis have been pushing crypto prices to new lows. Bitcoin (BTC) and Ethereum (ETH), for example, have fallen by more than 65% since their all-time high in November 2021. The total crypto market cap presently stands around $978 billion, dropping 68% from its peak of $3 trillion.

The impact of this downturn has also been apparent in several projects, with some shutting down owing to weaker fundamentals. TerraUSD (UST), for example, dropped from $40 billion to Zero in a matter of weeks as a result of poor token design. Even Celsius went bankrupt after a major liquidation that was not risk-hedged. This has been the case with many others that were shut down because of the current bear market.

The ultimate reasons have pointed to weak fundamentals of projects, such as poor token design, overleveraged holdings, and a flawed product offering. As a result, the need to foster a more stable market has become important. It’s time to quit riding the hype train and start creating products that are truly consumer-centric.

Providing Real World Utilities for Sustainability

Crypto bear cycles have been brutal every time they’ve come, wiping out a number of projects from the cryptosphere. They have been a stress test for all the crypto projects. The only thing that distinguishes the test survivors are projects with strong fundamentals. Now, the term fundamentals may be ambiguous, which is understandable given that it has different meanings for each project.

Even while the fundamentals of each project differ, one primary aspect shared by strong projects is that they deliver consumer-centric solutions. Crypto projects that solve community problems with their products or tokens are the ones who survive the most severe bear markets. They are the ones that bring back the faith that has been lost in the industry and community as a whole. 

Exeno is one such blockchain-based platform that is providing consumer-centric solutions. The team behind the project states that “exeno started as a crypto-only online store for name brand products. We quickly discovered that the project needed deeper solutions and better tools to stay relevant. That’s why exeno coin (EXN), our native cryptocurrency, is armed with features that make it genuinely applicable in the world of e-commerce. We’re talking about a multi-chain coin with bridging technology.”

Exeno is entirely focused on developing real-world use cases that would greatly benefit consumers. “We create solutions that will make cryptocurrency a part of daily life. The period of abstract crypto projects without practical application is over“ says CEO of exeno, Tom Babiak. 

Bear Markets: An Opportunity To Build Better

Bear markets have historically spelled problems for the crypto sector. As a result, relatively few people have explored the possibility of creating something great in such markets. In reality, bear markets level the playing ground by bringing real projects to the forefront that are devoted to their vision and objective. The market limitations enable ingenuity and commitment to generate long-term beneficial improvements. 

It is during these times that entrepreneurs are free to focus on developing their products, communities, and networks without being distracted. It enables project founders to focus on technological advances by identifying the greatest use cases for blockchain and crypto. Axie infinite, for example, was one of the projects created during the 2018 bear market. The Pokemon-style game found its use case in gaming, where it became a huge hit making billions of dollars.

Another example was Compound Finance, a lending platform on the ethereum blockchain. It was built during the 2017-2018 bear market, which also pioneered protocol governance, and is currently worth $3.5 billion in total value locked (TVL). There have been many other bear market hits, such as Aave and Maker, which are presently valued at $10 billion and $7 billion, respectively.  All of these show that bear markets have not only been dreadful, but also brought opportunities to build better.

Enabling a Smooth Transition from Web2 to Web3

Thousands of crypto projects have been launched to date, but only a few have survived long enough. Bear markets have done their part to rid the sector of bad projects while preserving the strong ones. The crypto sector desperately needs strong projects and visionary builders to make it reach the masses. “With projects like exeno creating real-world utilities to tackle community problems, it is an indication that the industry is progressing for the better. An ecosystem like this is necessary to bring communities together by solving their problems, thus making the transition from web2 to web3 easier” sums up Tom Babiak.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.