How To Build Trust In Your Crypto-Native Company
There is a growing swell of businesses that are beginning as crypto-native businesses, meaning that they’re built on the blockchain, building projects either to the benefit of crypto users or using crypto technology as their core service offering. This is a sector that is likely to grow considerably over the next few years as the transition into Web3 cements itself, but, for the moment, trust in the space is precious. How do you build it so that your target market is more willing to engage with your business?
Transparency And Clear Communication Is Vital
If you want to build trust in your Web3 business, then you have to start with radical transparency. Transparency is one of the key selling points of the blockchain, and you can lean further into this with on-chain metrics, governance decisions, and protocol changes, ensuring that stakeholders and your service users are kept aware of any changes and decision-making processes well in advance of them happening. You have to be able and willing to communicate things like updates and roadmaps with explanations that your lowest-information users are going to be able to understand. If possible, you might want to keep the channels of communication open with social media tools like X/Twitter or even Discord to build a community that appreciates that transparency.
Stay Financially Compliant And Trustworthy
Financial integrity is crucial to building trust, especially in an industry like crypto, where there have been multiple cases of rugpulls; projects disappearing after they’re successfully funded. Proactive demonstrating your compliance and active financial management with crypto accounting software can help to alleviate a lot of potential doubt in the project. Your ability to track wallets, on-chain transactions, token distributions, staking rewards, and real-time valuations all make it much easier to ensure tax compliance, as well as your ability to keep up with regulatory and reporting requirements. If you keep your financial records audit-ready, then you can respond to regulators and investors to clear up any doubts.
Address Environmental Concerns Through Sustainable Practices
Some of the most persistent concerns around any crypto-driven business are the environmental impacts it could potentially have. Finding and using the right sustainable solutions for your crypto ecosystem business can help assuage those concerns and build trust that your business is not only effective but has values beyond profit alone. This can include using energy-efficient mining solutions that use renewable energy sources, crypto mining containers that optimize energy usage, and investing in cooling systems that mitigate water waste as best as possible. Educate your community about the steps you take to minimize waste and follow green operating practices, and it can show you to be a much more forward-thinking company within the space than many others.
The first companies exploring the Web3 space will have to put in a lot more work to earn the trust of a market that’s still learning about it. However, if you can do that, then you also stand ot gain the lion’s share of the benefits first.
