Benefits of a Bear Market for Web 3.0 Community Building and Marketing

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For Web 3.0 projects, the bear market can be a time of innovation and growth. It’s a good time for developers to build, and ultimately a good time for building communities and marketing in Web 3.0.

But why?

Benefits of the bear market

A bear market should not be viewed as entirely negative. There are elements of a bear market cycle that Web 3.0 projects would be wise to leverage to drive community growth and marketing.

Advertising and sponsorships become more affordable

On the one hand, advertising and sponsorships become cheaper. Companies generally have more money to spend during a bull cycle, which makes it harder for small businesses and smaller budgets to compete.

When the money is flowing, sponsorships, conference booths and advertising opportunities cost an average of five to ten times more than during a bear market.

Advertising quality can also take a hit. A bear market levels the playing field and allows businesses of all sizes to stretch their budgets further to reach a wider audience.

Bear markets are a time to align with values

Community growth during a bull market is easy. According to a beginning Web 3.0 Developer Report 2022the number of developers hit an all-time high in December 2021 when crypto prices were also high.

Many projects also continue to grow during the bear market however, those drawn to the project by a desire to get rich quick are likely not contributing to positive values-driven conversations through social and community channels.

When token prices fall, those who joined the community for the wrong reasons will fall, leaving those who share values ​​and believe in the mission of the project. Teams and communities aligned with values ​​and mission can ultimately achieve so much more.

Projects that take advantage of slow economic cycles to build a foundation of shared values ​​and align with the vision will be in the best position to sustain themselves over the long term.

Facing the challenges of the bear market

No business is cycle proof and of course economic downturns present challenges from a financial and growth perspective. The question then becomes how do projects overcome these challenges, using these challenges as springboards to launch ahead of the competition?

Even the strongest Web 3.0 companies are not immune to the pitfalls and challenges of the cycle. Take Coinbase, for example, which announced hiring freezes and layoffs due to the bear market. They are just one of many who have been hit hard by the decline in cryptocurrency prices.

Business growth and hiring become more difficult during downturns. Still, it’s an opportunity for smaller projects to attract experienced talent who believes in the project’s vision.

A bear market has a similar impact on growing and building Web 3.0 communities. For example, during a bull cycle, a community can gain thousands of followers per week. but during a bear market, this number can slow down to a few hundred.

However, as organic growth slows, the opportunity to focus on and strengthen existing community involvement increases. An aligned community is a valuable asset that must be protected, regardless of the economic cycle.

Another challenge during a bear market is general morale. Company and community interests may no longer align, due to net losses or economic impacts. It can be difficult to maintain enthusiasm for a project, and morale will take a hit. Discussions about markets and money can alienate builders and community members.

Retool, rework, regroup

There is no perfect solution to the challenges faced by Web 3.0 communities during a bear market cycle, but there are ways for projects to leverage the benefits to help them navigate it.

Reorder goals and metrics to prioritize retention over growth. Double the true believers, meet their needs and focus on development. The overall numbers may decrease, but the quality of your community will only increase.

Rework your marketing budget. Cut the fat and go lean. Focus on high-quality audiences that will stick around, regardless of the type of cycle.

Bear market builders want substance. Reach them organically with a more discreet and targeted marketing message. Save what you can to be ready when the next bull cycle arrives.

Regroup. Focus on team morale and instill a “help build/grow” mindset. Psychologically, a bear market can be tough, especially for Web 3.0 teams that were working during a bull market.

Focus your leadership efforts on supporting your team, sharing insights, and accompanying them on the journey with a shift in strategy. Highlight the good work in progress, advocate for your ecosystem builders, and work smarter no more difficult so you are ready when the next cycle begins.

There will always be an ebb and flow between bull and bear market cycles. As we look to the future and the end of this current cycle, it is important to carry the benefits of this bear market into the next bull cycle.

Projects that continue to focus on aligning values ​​and creating a strong shared vision within Web 3.0 communities and through marketing efforts will emerge from the recession stronger and more resilient than before.

Claire Kart is the Vice President of Marketing and Communications at the Mina Foundation the public utility company serving Mina Protocolthe lightest blockchain in the world.

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Feature image: Shutterstock/Vadim Sadovski/INelson