The recent crypto crash offers an opportunity for Crypto Investors in the decentralized finance space. This opportunity can help them rethink how the whole system works. Moreover, it gives crypto investors a chance to rebuild it,
There are steps that crypto investors, companies and projects can take right now to create a more secure and stable future for decentralized finance (DeFi).
The crypto projects cannot exist without their investors and they must diversify their target audience, take responsibility for educating them, and look beyond moonshots.
A broad variety in Paramount
Cryptocurrency, like any currency, is most successful when it is by a variety of crypto holders Think about it.
Everyone, everywhere, has some kind of fiat bill or coin in their possession. No matter what socio-economic background they come from. This is what crypto needs to strive toward.
Moreover, the best way to inject reliability into crypto is to spread it out as much as possible. Further, the Corporations with DeFi investments are incentivized to play it safe in order to protect shareholder interests.
The Hedge funds are able to take big chances because they have the financial wiggle room to make daring bets on different coins and tokens. Day traders add a layer of depth to the distribution that can keep currencies from tipping too fast. When will we reach the stage where casual investors can be found anywhere?
How can business leaders address this issue? By identifying target investors – and users – the way that well-run businesses do. Instead of courting whales, blockchain projects should prioritize attracting and retaining a broad array of investors. Companies like E*TRADE and Charles Schwab know how popular crypto is and offer guidelines for their investors. There is a growing potential for crypto projects to court the same investors that trust their long-term investments to these companies.
No one in fiat invests their entire pension in one stock, so why do many crypto projects assume investors will do the same? Recent weeks have revealed that presenting crypto as a get-rich-quick scheme is a fool’s errand.
Industry leaders need to present their ideas as steady, long-term projects. Now is the time to move on from crypto looking like a modern form of gambling and actually instead demonstrate its uses as a decentralized currency built for the long game.
To do so, blockchain projects need to be explicit about who they are, their long-term goals, and what they hope to accomplish with their project. At RAILGUN, we prioritized transparency on our website by listing our core team members, their individual credentials, and links to professional pages. When potential investors are looking at our project, they know exactly who we are and what qualifications we have.
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