At a recent Ethereum community meeting in Paris, venture capitalists shared their insights on effective strategies for startups seeking to bring new cryptocurrencies to the market. Ryan Barney from Pantera Capital advised founders to focus on selling to exclusive, affluent customers , or "whales/VIP ,” rather than trying to scale too quickly. He cited the successful example of the Blur airdrop, emphasizing how a well-designed and marketed airdrop can optimize user engagement within the protocol and increase traction.
Barney pointed out that initial coin offerings (ICOs) and influencer marketing are not effective strategies in the current regulatory environment. Regulatory headwinds have largely prevented institutions from participating in ICOs, making them less viable for fundraising. y, recent instances of influencers promoting projects without disclosing conflicts of interest have eroded user trust. However, Tony Cheng from Foresight Ventures disagreed, stating that influencer marketing is crucial in the crypto space as it offers a way to attract users in the absence of centralized traffic sources like Google or Facebook. Cheng emphasized the need for transparency in influencer marketing to maintain user trust and alignment with the project's vision.
Regarding the recent SEC v. Ripple ruling, Cheng suggested that founders should consider non-institutional token sales or ICOs to gain traction. He pointed out that the ruling implies that retail ICOs may be a more acceptable fundraising method compared to institutional private placements. However , Cheng also cautioned against fully embracing ICOs until there is further clarity on regulation. He believes that a positive ruling on retail sales could apply to other fundraising mechanisms, such as initial decentralized exchange offerings and initial farm offerings. Despite regulatory uncertainties, Cheng stated that ICOs could become the primary fundraising method in the future for startups in the US
