The year 2023 had been full of obstacles for crypto thanks to heightened restrictions on trading and a sense of skepticism still prevailing in the industry. Moreover, this significant drop visible in crypto market capitalization and the prices of digital assets is largely due to the current bear trend in the industry. In times wherein many projects are facing substantial losses, it becomes crucial to understand how to build a Web3 community in bear market?
Though there is nothing to worry about since there is a plethora of lucrative possibilities even in the ongoing bear market. The crypto realm has consistently evolved and innovated in the bear market too given the cutting-edge products and services arriving at a rapid pace, making it more secure and reliable.
As per the Crypto Fear & Greed Index, crypto investors in general are “fearful” of the ongoing bear market environment. However, historical instances have depicted that top-notch technological solutions flourish in the fertile conditions created by this lack of market hype. For instance, in the early 2000s DotCom Bubble burst, and major firms including Google, Amazon, Facebook, and e-Bay endured this crash and emerged much stronger than before. This was largely because they did not get demotivated due to the negative market sentiment and volatile trends, and put a redefined focus on community building.
In this article, we will highlight how to build a Web3 community in a bear market. Let’s get started:
What Is a Bear Market?
In the context of cryptocurrency, a bear market refers to a prolonged period marked by a declining market and dropping prices of digital assets, leading to a downward curve. Since investors are worried about their investments in crypto projects, the bear market slows down the economy. This price decline is generally 20% or more than the recent market highs.
If you lack a well-thought-out community-building model alongside a foolproof Web3 strategy, the bear market can become an exhausting conundrum for you. You need to make each day of your Web3 project a learning experience.
Why Is Community Building Needed In a Bear Market?
As per statistics, the market capitalization of Web 3.0 is approximated to be around USD 27.5 billion. Web3 projects require you to constantly engage with fellow users, forge meaningful partnerships, and create a warm environment. Before asking how to build a Web3 community, let’s understand why it is needed in a bear market in the first place. Bear market calls for Web3 community building due to the following reasons:
- It creates a sense of integrity and camaraderie amongst the participants of a Web3 project.
- For building legitimacy within your project’s community, your fellow members become a source to request user-generated content.
- There is little scope for growth without having a compelling and well-researched community management strategy.
The community can provide valuable feedback, assist with bug fixing and testing, and ultimately help drive the adoption and usage of the platform. Thus, in the initial stage itself, the founders must focus on creating a strong Web3 community.
Strategies To Build Web3 Community In a Bear Market
Since the bear market allows you to create a strong team, you get access to better talent who are ready to get on board at reasonable costs. This is very fruitful in distinguishing your long-term visionary individuals from short-term enthusiastic ones. As per the data by Dove Metrics, around 438 Web 3.0 companies have raised funding of nearly $4.5 billion so far. Thus, projects marked by strong fundamental value are always appealing to prospective investors.
You can refer to the following set of strategies to build your Web3 community in a bear market:
1. Be Open and Transparent
As Web3 is committed to open-source information, one has to constantly interact with their community by resolving queries and receiving feedback. Keeping the information (like tactics, instruction, research, and code) open, the Web3 founders need to be open and transparent for maintaining a certain level of trust and maximizing the extent of your project’s community growth.
If you are concerned about how to build a Web3 community by being open and transparent, you can refer to the following points:
- You should create an active public forum to engage with your community
- You should inculcate a community-driven decision-making method for your project
- You should give regular updates to your community
- While creating and revising your project, you should open-source your code by relaying as much information as possible to your member.
2. Garner Genuine Members
It is all a matter of time before you can easily figure out who are the most genuine community members you should attract. Since most of them would enter your Web3 project at the peak of the bull trend in the market, they are bound to be full of enthusiasm and euphoria. But the genuine ones stay with you even when the bear market seeps in. They are primarily your project’s core team, your friends in the community, and members who held a firm belief in your project. This small yet strong band of community members plays a huge role in further attracting people with likewise attitudes. This consolidates your project’s foundation and garners high-quality members.
The project foundation becomes built on solid ground and brings in even more high-quality members. Thus, for resolving your queries regarding how to build a Web3 community, you should strive to attract those members who have values that are similar to you and possess a long-term vision.
3. Create Meaningful Partnerships
Creating a sustainable ecosystem for your Web3 project is crucial for maintaining a well-knit community. Thanks to the wide variety of players in the Web3 ecosystem, you can reap multiple benefits from the new opportunities leading to rapid growth and expansion. You can amplify the chances of your project’s success by bringing on board like-minded members and projects. This can be done by forming meaningful partnerships and offering purposeful value to both yourself and your community members.
4. Create Real-World Use Cases
As a Web3 leader, you are expected to focus on creating real-world use cases for your project. To achieve this, you can develop decentralized applications (dApps) by working alongside enterprise partners to develop. Launching dApps instantaneously leads to a stronger developer community within your Web3 project. Thus, a well-charted-out use case helps you easily attract talent and promote the adoption of your platform.
5. Foster Technical Development and Innovation
Technical development and innovation are directly proportional to stronger community building. As a Web3 leader, you should not forget the prioritization of technical development of your projects keeping in mind the concerns of security, scalability, and interoperability. While understanding how to build a Web3 community, you should also realize that building a Web3 project or a decentralized platform for that matter is not an easy task.
To foster technical development, you can partner with well-reputed blockchain development agencies, full-stack development companies, and Web3 incubators. These players can help you overcome the abovementioned challenges of security, scalability, and interoperability, and thus, help your projects reach fruition. In a bear market marked by less hype and enthusiasm, Web3 leaders can focus on offering solid user-centric solutions instead of generating hopes of the arrival of an electrifying bull market.
6. Collaborate Constantly
You need to understand that Web3 does not thrive on competition as much as it does on collaboration. In times when the Web3 realm is at its nascent stages and the market is embracing innovation, you should constantly collaborate with different communities. You could do this by hosting events like physical and/or virtual hangouts for prospective partners.
7. Nurture a Long-Lasting Sense of Confidence
As per statistics, usually, a bear market lasts for an average of 388 days. A bear market might take a very long time to recover. For instance, the DotCom bubble in the early 2000s saw a bear market trend for surprising 929 days and prices reached new highs after nearly a decade. So, the bottom line is that no one can predict how long your Web3 community might have to wait. This calls for nurturing long-term confidence amongst your community members during stages of stark market declines. It can be attained by having and acknowledging a firm belief in your project and the technological support behind it.
If you are worried due to the dilemma of “how to build a Web3 community”, you need to know that some of the biggest Web3 projects like Axie Infinity, Solana, and Avalanche started in the 2018–2020 bear market trend.
8. Reward Your Members
Who does not love getting rewarded? And that too when you are a member of a strongly held-together community.
Getting rewarded for early and active participation is a significant aspect of Web3 community building, particularly in a bear market. You can not only conduct giveaways exclusive to your Web3 community but also reward your early members.
Moreover, you should put your Web3 community as the #1 priority to let them know that you truly care about their interests and benefits. For this purpose, several communities have been relying on airdrops.
9. Build a Well-Defined Value Proposition
Why would any user want to become a member of your community? What set of values differentiates your Web3 community from the rest of the market players?
In simple terms, the value proposition is your Web3 project’s promise of value in terms of how the benefits of your project’s products and/or services would be offered, experienced, and acquired by the community members. Thus, value proposition refers to the characteristics that make your project desirable, how its values are distinguished from similar products, and why a prospective member or client should become a part of it.
Thus, utilizing the above-mentioned strategies is extremely vital for the sustenance, maintenance, development, and success of your Web3 project. Working alongside a top-notch agency like Blockwiz, especially in a bear market, gives you a competitive advantage over other market players and sets you apart from the crowd by establishing your Unique Selling Proposition.
Conclusion
Success is not the only parameter to measure the progress of the Web3 project since it is a long-drawn process. You must emphasize solid foundation building and well-knit community formation so that your Web3 project not only endures but also flourishes in a bear market trend.
Get in Touch with Community Experts Now
Concerns surrounding “how to build a Web3 community” can thus be solved by forging a robust virtual ecosystem, focusing on market fundamentals, and dynamic community building and strengthening. All of this ultimately steers your Web3 project toward the path of long-term success.
A feasible solution to this community building is partnering with a Web3 community building agency, which can offer tailor-made solutions to help you build a strong Web3 community even in times of a bear market trend.
Frequently Asked Questions
1. Is a bear market trend the best time for you to build a Web3 community?
Ans: Yes, bear markets are the best time for Web3 leaders to form a strong and well-integrated community to not just create an expansive market share but also a collective sense of “mindshare”.
2. What should I do to easily engage with my Web3 community?
Some easy ways for you to engage with your Web3 community include answering their questions, paying heed to their feedback, and regularly sharing updates with them.
3. What are the five main principles of how to build a Web3 community?
The five principles that help understand how to build a Web3 community are as follows: (i) being involved with your community members on a personal level, (ii) prioritizing information accessibility, (iii) practicing an inclusive approach (iv) appreciating your community’s collective as well individual efforts, (v) being clear with all the rules and regulations.