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3. Market gaps & shortfalls
In the current market, both within the MultiversX and in the greater Web3 ecosystems, it is easy to identify and acknowledge that there are many gaps and shortfalls, which are all part of the immaturity and youth of the NFT space.
Some of the most common ones are outlined below. But more importantly, in section 4, we explain how ComVerse is proposing to address these shortfalls through a measured and calculated strategic approach.
In traditional start-ups, investability is often measured by the ability, dedication, and characteristics of the team that is behind such entities. Web3 projects present a new dimension and challenge to this, as many of the founders and projects are purposefully undoxxed, meaning that the credibility and reliability of such projects are often short-lived.
We must collectively acknowledge that whilst it is sometimes advantageous to stay anonymous or pseudo-anonymous when dealing with cryptocurrency, most of the time this does not bode well with launching a project that needs credibility.
For those projects that may have doxxed teams and act with the best of intentions, quite often we see a lack of accountability and responsibility in the leadership team. Regardless of how immaculate the utility or art of such projects may be, bad decisions will drive people away and create unnecessary political divisions.
It is hard to find or be great leaders. Our belief is that they must have the following (non-exhaustive) attributes:
- Ability to make decisions and take responsibility for those decisions; that means receiving both good and bad feedback, and acting accordingly to resolve them.
- Have empathy and understanding for other team members as well as the community.
- Have a vision, and follow through with them, with the ability to adapt, chop, pivot, and change if and when required.
A lot of NFT projects launch with little to no utility or purpose. This approach could work in the bull- market and can quickly generate some income; however, it has proven that most non-utility collections die off over time as the hype eases and people look for the next best thing.
How can projects sustain growth and momentum over a longer period of time, right through bearish periods of the market cycles?
Within the MultiversX ecosystem, projects piggyback on each other for their yield strategies. This results in similar yielding strategies, risk profiles, and little to no diversification.
How can a project grow its yielding strategies by branching into other ecosystem-yielding vehicles so that not all eggs are in one basket?
NFT projects in general are heavily artwork based. As mentioned in section 3.2, projects generally lack any utility at all. Whilst PFP collections can be entertaining, there’s only a set amount of addressable market before saturation.
In the bear market phases, it is often the prime time to think about how real-world adoption can be driven and applied to great technologies like the NFT on the blockchain.
Due to the immaturity of the Web3 industry, many projects with roadmaps are either under-delivering or lackluster altogether. When the market is liquid and the sentiment favors risk-on strategies, projects often fly even without a good roadmap. But the eventual outcome is that projects often go into long-term hibernation during the bearish phases of the market cycles.
ComVerse will address in the next section its actionable strategies on how it will continue to build in a consistent manner, no matter bull or bear.
Last modified 1mo ago