Web3 Entrepreneur Thoughts (02): About Feedback and Decision-making

 Original Title: "Sleepy's Entrepreneurial Thoughts #002: On Feedback and Decision Making"  

Original Source: Sleepy, Founder of WeirdoGhostGang

In the bear market, it is most suitable for reflection and review. Recently, I reviewed the development experience since starting a business. The cyclical nature of Web3 can seriously distort the actions of entrepreneurs. Many times, what we think is positive feedback may just be riding the bull market elevator. With this feeling as motivation, I wrote this essay.  

TL;DR

1. Web3 periodic misguidance may lead to distorted judgments by entrepreneurs, and the positive feedback of a bull market may only be a short-term market reaction.

2. It is recommended that entrepreneurs break out of the Web3 cocoon, stick to their core beliefs, and continue market education.

3. Be prepared for the bear market: financial management, core product optimization, community interaction, team training.

4. Ensure physical health and arrange work and rest reasonably. 

Feedback and Decision-making: The Illusion of Bull Market and the Test of Bear Market. Web3 entrepreneurs are easily influenced by market signals, especially in this rapidly changing and developing field. 

The Illusion of Bull Market:

-Easy Financing and High Valuation: Many projects quickly raised funds during the bull market, which may lead to a disconnect between their valuation and true value, laying hidden risks for financing after the market turns bearish. - Rapid User Growth: A large number of users are flocking to Web3 projects, but many of them may only be chasing short-term gains, and there are also a large number of bots present.

-The rapid rise in token/NFT prices: During a bull market, due to market liquidity overflow, token and NFT prices can easily rise, but this rise may not be sustainable and can quickly fall after the market turns bearish.- Technical and product decisions may be distorted: Due to the market's "positive feedback" in a bull market, entrepreneurs may have overly optimistic evaluations of their technology and product direction, and overlook issues with their products, decisions, and team. They may also try to apply a set of methodologies that worked in a bull market to a bear market.  

Bear Market Test:

 -Difficult Financing, Low Valuation: Tightening of funds, cautious investors, and more realistic project valuations.-User growth slowdown: The growth rate of users is decreasing, and a large portion of the retained users are still attracted by quick cash-outs and speculative trading.

-Token/NFT prices continue to fall, liquidity dries up: In a bear market, with increasing selling pressure and hesitant buyers, token and NFT prices will continue to decline for a long time, and liquidity will also be greatly reduced.- Error methodology summarized from the bull market: The positive feedback of the bull market does not necessarily mean correctness, it may just cover up the problems of the project with price increases.

How to make wise decisions?

-Breaking out of the information cocoon of Web3: Entrepreneurs should not limit themselves to the small scope of Web3, but should expand their horizons, learn methodologies from other fields, and seek new user and market opportunities.

-Continuous market education: Ensure that investors and users understand the true value and long-term goals of the project. -Stay calm and stick to core beliefs: In all market environments, the team needs to have calm judgment and long-term strategic vision. 

Strategy Adjustment: Facing the market shift from bull to bear market. This part is singled out because recently, in communication with some friends, it was found that some people are still using certain projects' decisions in the bull market as a reference for the company's strategy in the current market situation, which is quite worrying for them.  

When the market turns from a bull market to a bear market, entrepreneurs will face a series of new challenges. Tightening of funds, weakened investor confidence, and overall market pessimism will directly affect projects. In this situation, most of the events that occurred during the bull market may not be of reference value. Therefore, how to respond steadily is a question that every entrepreneur must consider.  

1. Financial Management and Cost Control

Entrepreneurs need to learn to review and optimize their budget. Cash flow is the lifeline during a bear market, so all expenses should be reviewed and cost-cutting measures should be taken in non-core areas. Cost-cutting not only refers to the investment of funds, but also the conversion of time and personnel costs into money. It is particularly important to note that our industry always has summits around the world, and travel costs are not low. Therefore, whether or not to attend these conferences is worth considering before making a decision.

2. Internal optimization of the product- Strengthening the development and deepening of core products: focusing on improving core products, enhancing their competitiveness and user experience. This includes DApps, media articles, GameFi, NFT IP, and so on, depending on what business you are in. Taking our little ghost as an example, the core product here is of course the little ghost IP itself. We need to reflect on our previous shortcomings, tell the brand story well in the bear market, do the content well, and make this IP stand firm in the hearts of the public and continue to expand its influence and monetization capabilities in Web2.

3. Market Strategy and Community Building 

-Increase interaction with the community: Founders and teams should stay in the community and sincerely listen to the opinions and suggestions of the community.

-Breaking through barriers and expanding influence: striving to expand into markets beyond Web3, such as collaborating with traditional industries, seeking new partners and user groups, or providing introductory tutorials for users unfamiliar with Web3.

-Repositioning brand and information communication: Communicating clearer and more authentic brand information to the outside world, making it easier for external parties to understand the core value of the project.  

4. Team and Partner Relationships - Internal training within the team: Utilize this downturn period to conduct skill training within the team, so that the team is prepared to deal with the current market challenges and potential next upswing cycle. For example, many members of our team now have the ability to independently BD Web2 brands, rather than just being limited to the Web3 circle. This is a new skill that is applicable to our current business.

欢迎加入律动 BlockBeats 官方社群：

Telegram 订阅群：https://t.me/theblockbeats

Telegram 交流群：https://t.me/BlockBeats_App

Twitter 官方账号：https://twitter.com/BlockBeatsAsia