Navigating the Crypto Cycles.

Crypto is a crazy industry to be in. It’s innovative and ambitious. It’s heartbreaking. It’s exciting and fun. It never slows down. It does go up and down though. A lot.

In the most recent episode of The Engine, Sasha Barrie talked with Andy Boyan, Ph.D. (of Last ) and Angelo Alessio (of Build CIties) about crypto industry cycles and how to build a business that grows in the summers and survives the winters.

Here are five takeaways from this conversation:

1. Ride the Waves with Purpose

Step #1 is to embrace the cyclical nature of crypto with intention. Study the patterns, much like a surfer studies the waves, to time your ventures—be it fundraising, launching new products, or entering the market. Understanding these cycles is akin to knowing when to ride the wave and when to paddle out, ensuring you're poised for growth when conditions are ripe and sheltered when the storm hits.

2. Balance the Liquidity Sword

Startups in this space enjoy the unique advantage of early liquidity through tokens, a double-edged sword that demands a delicate balance. For the founders, it’s a multi-faceted challenge, from creating the right tokenomic design and launch strategy to balancing the team’s focus and community sentiment through the ups and downs of the market.?

3. The Art of Strategic Patience and Adaptability

Flexibility and patience are your allies in the ever-evolving landscape of crypto. Choosing the right technological foundation, whether it's a specific blockchain, tool, or protocol, requires a blend of foresight and adaptability. Choosing a technical stack in crypto can be similar to investment. New options come up all the time, and you will have to train your intuition to discern the strong projects that will propel you forward from the ones that will not survive the first storm. You will also have to balance pure technical considerations with business calculations, grants, co-marketing, and branding, which can bring a lot of power, especially in the early days of a project.

4. Crafting Calm in the Chaos

Building a strong community culture and brand narrative and focusing on product-led growth can help you insulate your venture from the market's volatility. It starts with anchoring your business in a vision that transcends the immediate ups and downs, attracting a loyal community that believes in your mission. On a deeper level, you can structure your business in such a way that your core operations are decoupled from the market's fluctuations.?

5. Showing Up For The Community

Crypto projects live and die by their community vibes, a mix of culture, aesthetics, and sentiment. You may scoff at memecoins, but they are tapping into the power of belief. Building sustained trust and loyalty with your community is part of every founder's job, and 90% of that job is showing up. Crypto is very personal. You have to make time to be with your community in a personal way - through events, blog posts, Twitter, Farcaster, YouTube, Drakula - or wherever you find them.?

Last But Not Least: Take Care Of Yourself

Both Andy and Angelo emphasized the importance of self-care. Andy believes that the value of mental health cannot be overstated in this high-stakes game. A good therapist can be as crucial as a good investment. And this is not even an exaggeration. Angelo reminded us of the power of community for builders — not just building a community around your project but finding your own tribe. Not only can it help you create important connections, find a signal, and amplify your reach amidst the noise, but simply the opportunity to shelter with good people through the winter storms can make a huge difference to how you navigate it.

End of transmission.

mic gently placed back on the stand

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