The positives of a harsh (crypto) winter

I’ve always found it difficult to pick my favourite season (I was born and brought up in the UK where there is little certainty of what a season will bring, after all). It’s the change of seasons that I like, with each bringing different perspectives, different experiences.

This sense of renewal is how I look ahead to the onset of ‘crypto winter’.

Without doubt, the last few months have done nothing to convince no-coiners that they were wrong all along. The steep decline in crypto prices and spectacular implosion of the UST ‘stablecoin’ have added fuel to the fire of the likes of the FT’s Jemima Kelly — which is painful in itself. But like any winter, a crypto winter can and will have distinct benefits.

I’ve spoken to many people raising funds for crypto businesses in the last few months. Those who’ve secured investment are now exceptionally well-positioned to put their heads down and build product, regardless of what is going on in the markets. And many who’ve not had such fortuitous timing have seen seemingly concrete offers withdrawn at the last minute or are finding the bar has been raised significantly. Well done to the former group, and good luck to the latter.

Ultimately the evaporation of easy money for crypto start-ups is, to some extent, a good thing as it will mean funds are focused on the strongest ideas. We’ll see an explosion of innovation coming out of these leaner times that will fuel the next spurt of growth and adoption of crypto.

But what does a crypto winter mean for how crypto businesses communicate?

First and foremost, it puts much greater emphasis on the need to very clearly articulate real-world relevance, impact, and long-term value.

Far too often crypto initiatives have lost themselves in a sense of their own self-importance — you can just about get away with that in a bull-market where the mere link with crypto makes a particular initiative ‘interesting’. But winter brings with it a harsh jolt of reality.

Crypto founders need to ask themselves the following. How exactly is your project interesting or different? What will it change and with what impact? How is it viable long-term? Why should people care?

If you have compelling answers to these questions and communicate them consistently over time, you’re much more likely to flourish long after crypto winter.