Crises bring opportunities
Basically, the last two years have been an excellent time for anything related to Web3, crypto, NFT, and blockchain. The market has grown tremendously - we've seen new all-time highs and some sobering lows alongside exceptional and consistent innovation. Even though recent events have clearly brought out bad actors and put the field in the spotlight for all the wrong reasons, we are optimistic about the future of Web3 and recognize trends that will be highly relevant, especially next year. Therefore, in this blog article, we would like to discuss the emerging opportunities brought forth by scandals such as those surrounding Sam Bankman-Fried and the crypto exchange FTX.
- Crises bring opportunities
- What happened?
- Trends for the Web3 space
The former third largest crypto exchange ever - FTX - collapsed in early November. The reasons for this are so criminal that the liquidator in charge caused bewilderment by stating "never in my career have I seen such a failure of corporate controls and such a lack of trustworthy financial information as I have seen here." Sam Bankman-Fried, the founder and CEO of FTX, reportedly placed no value on record keeping, embezzled millions of dollars in client funds for personal use, and used software that hid just that. Needless to say, this news created a sense of disaster in the crypto space, prompting countless individuals to pull out their deposits on all exchanges. It is referred to as "perhaps the darkest day in crypto history."
In addition to this, the recent collapses of Celsius and Terra Luna are giving the media a lot of work. These events continue to make the Web3 space a volatile and polarizing one. The tenor of the mainstream media continues to portray NFTs and cryptocurrencies as a fringe movement rife with fraud and scandal. Along with this, the prices of most cryptocurrencies have been questioned over the past 12 months and even the outstanding Bored Ape Yacht Club NFT collection is currently 75% below its peak of €400,000 last February.
Trends for the Web3 space
Media sentiment and the prices of NFTs and cryptocurrencies are just the insignificant tip of the iceberg for us. Web3 is the next evolutionary stage of the internet and consumer behavior, driven by blockchain technology. As consumers spend more and more time online and younger generations grow up with increasingly intertwined versions of physical and digital realities, we expect today's foundations of emerging Web3 technology and culture to grow exponentially and have profound impact.
The customer approach must change
In the last 24 months, we have seen excellent use cases in the Web3 space. Unfortunately, in some cases, NFT projects were also launched arbitrarily, trying to create artificial media hype with the help of buzzwords. For 2023, we are sure that the go-to-market strategy will work somewhat differently, which is due in particular to the negative events described above. Users are now more cautious and also more reserved when it comes to NFT and blockchain. In the case of the winners of the last few months, we see a well-thought-out strategy that focuses on sustainable brand development. For this reason, it is important for 2023 to pursue a differentiated customer approach and develop a targeted go-to-market strategy. Brands that want to be successful in the Web3 space next year must clearly identify their target audience and address them accordingly. Technical terms like "NFT" are communicated with paraphrases like "digital collectible," "access key," or "membership." This simplification and technological abstraction is increasingly common as new platforms like Reddit and Instagram also use "mainstream-friendly" terms.
Web2-friendly solutions are required
Tech giants' investments and pilots are bringing a large new audience into the Web3 space. Whether it's Shopify, Google, Instagram, Amazon, or recently Reddit, these companies are experimenting with multi-million dollar investments to create a core product offering that is a blend of Web2 and Web3. Users don't want to deal with the complexity of installing a wallet or setting up a network. This is because the hurdles involved have, in turn, been exacerbated by the negative events in the crypto space described above. In a previous article, we already talked about a solution to get customers on board with maximum user experience.
Token ticketing brings clarity
Another clear opportunity for Web3 to create more transparency, value and trust is ticketing. For businesses, ticketing can not only eliminate the black market, but also create new opportunities for holistic experiences in the physical and digital worlds. Here, we're thinking primarily of token-gating opportunities that enable digital and exclusive post-event experiences. Again, the benefits of ticketing on the blockchain were discussed in a previous article. While there have already been big announcements from sports clubs and festivals this year, we believe that broader adoption of blockchain-based ticketing is to be expected, especially next year.
Web3 will become increasingly popular
We are aware of the economic and technological environment and that the impact of macroeconomic forces and regulatory changes could play an important role in the development in 2023. All in all, however, we remain firmly convinced: Web3 will become increasingly popular in 2023. Therefore, we are looking forward to another dynamic year in Web3 and, most importantly, to the realization of more projects. Especially for Web2-friendly Web3 solutions our software Berryfy offers the perfect start.