How to Determine if a Crypto Community is Strong & Will Survive
Joe Robert
Investing For 20+ Years | Managed $150M+ in Real Estate & Crypto | Strategies from millionaires so you can Invest Like the Top 1%
United We Are Strong
??A simple but meaningful phrase that was popularized back in the 40s in the US in a patriotic way today applies to any community worldwide. Apple and Android users, PS4 and PC Gamers, and sports teams. They all have one common element: a "fan base", or more likely enthusiasts that will help bring awareness to what they cherish and eventually present reasons why other people should be part of that same group.
??Regarding cryptocurrencies, community strength is a crucial factor in determining the likelihood of a project's success. This statement is exemplified by Dogecoin and Shiba INU, where the community supporting those coins is way more relevant than what their team is accomplishing and the project itself.
Why Community Matters
??Since the early stages of projects in development, teams invest time and money into building a favorable environment for communities to grow. They represent the first contact of newcomers to a particular company and are responsible for explaining why people should be using their specific product or service and its value to the world.
??Communities have a strong power of providing scalability to a company. By nurturing their own "intrapreneurs" and their diffusion actions, more people will spontaneously join the project, and the network effect will iteratively take place.
??Creating an engaging and growing community is similar to building the foundation structure and the pillars of a building. It is not only essential to have many participants in a group. Also, the bond between them and their positive interactions are vital to determining their strength.
Gauging Community Strength
??Compared to traditional finance, valuation methods aren't commonly used, and investment funds apply new methodologies to their research. To determine the community strength, it's worth looking at the social media metrics.
??This analysis makes sense to crypto projects since they are driven by what the community considers is best for its development.
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??After collecting the data, it is of significant importance to compare a specific project's community with its competitors to check the stages they're at and which one was able to have the most significant growth over time. This might be the first indicator of the community's strength:?its growth speed. It means that if the project could attract more users at a specific rate and faster than its competitors, it might sign a potentially continuous network effect.
??Community tone significantly shows the current status of the project. The strength factor is also determined by?aligning the community's expectations and what the crypto company delivers to them.?Suppose the company listens to what they have to say and constantly prioritizes what users consider important. In that case, there is no reason for people to express negative sentiments on social media, create a bad tone and consequently?discredit the project.
??Many consolidated crypto communities broke down after they were dissatisfied with the company, so both indicators (growth speed and tone) should be taken into consideration.
Don't follow the herd - but analyze their movements
??Since it is a fact that community strength is directly related to the time a crypto project will survive, investors should always put this metric on the radar when making financial decisions of where to put their money into.?At Robert Ventures, this factor is constantly monitored in all of our potential investments.
Joe Robert??is currently the Chief Executive Officer of Robert Ventures, with over 20 years of asset management experience. Since he has started Joe has created predictable double-digit returns for investors & Partners.?Joe has invested in seed rounds with equity and tokens, along with a portfolio of Bitcoin, Ethereum, and other top cryptocurrencies.?
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