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The Demand For Trust With Blockchain Businesses

By

Skyler Vondra

on

May 28, 2021

Over 90% of crypto startups fail, according to a 2019 article on Leap Rate. This statistic weighs heavily on the minds of investors and developers alike. What is causing this type of failure rate? Is the blockchain industry really that risky? Well, when you take a look at the things that surviving projects have in common, one thing they all agree on is the importance of trust. Trust can be built in several different ways, but when you're dealing with investor funds the most important thing is not to skip over this crucial step.

When building a crypto project, how your product is received by stakeholders should be the primary concern. Getting people fully on-board with your idea is the difference between making it and breaking it. So when you're presenting this idea it's important to not only explain the use cases, which is obvious, but to overcome the objections someone would have. I like to think that aligning you and your customers beliefs will get you 90% to the sale, but the part where you have to overcome their objections is the last 10% you need to convert. It might seem like the first 90% is what you should focus on and let the objections iron themselves out. But I would caution you not to overlook the complexity of that issue and focus on them from the start.

I believe that trust is the #1 objective that your customer/stakeholder/partner will have holding them back. So how can you answer this challenge? There are several ways.

Align your beliefs

The most straightforward part of any crypto project is the problem at hand that the project's technology can solve. Many developers understand how to communicate this to other developers, but that may not necessarily be the audience that you want to get on board. What I would challenge a developer to do here is to give two explanations. One that is as in-depth as possible, for those people who are sincerely interested in the intricacies of your technology -- and another, extremely simplified version for folks that have no idea what's going on, but want to understand on the surface level in as much detail as it takes to invest. This simplified version should absolutely be as short as possible. The fewer words the better. It'd be best if it was under three sentences if we're being honest. If you start out your relationship by confusing your prospect it's going to be hard to reel their attention back in where you want it to be.

Overcome objections

This is what I was speaking about earlier. Aligning beliefs will get you 90% of the way to a buy-in, but you can't forget about the last 10%. Overcoming objections is going to be unique to each project. So you have to be creative when in finding out what these objections will be. The best way is to ask a prospect directly, "What is holding you back from participating in this project?" after 50-100 interviews you should have a good guess about what they're thinking. Some common objections may be:

"If I invest, how do I know that my money will be safe & secure?"
"What separates your project from the competition, and how will you maintain that competitive advantage?"

The more clear and concise you can be with these answers the better. Remember that you're trying to build trust, and that requires a bit of relationship building for credibility. So take your time here and don't rush through.

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