Web3 startups need a serious attitude adjustment if they want to compete with established tech giants. The days of secrecy and anonymity are over. To build trust and attract serious investment, Web3 companies must embrace transparency.
Doxxing Your Team: It’s Not Optional
This means publicly identifying key team members, especially executives. Think LinkedIn profiles, Twitter accounts – the whole nine yards. Forget the hoodies and jeans at conferences; professional attire projects professionalism. Consider podcasts featuring high-profile guests to build connections and credibility. While you can maintain personal privacy, your professional online presence should be clear and verifiable.
Ditch the DAO (Maybe), Embrace Legal Structure
Instead of relying solely on Decentralized Autonomous Organizations (DAOs), consider establishing a formal legal entity like an LLC or C-Corp. If a DAO is essential, ensure its governance is completely transparent, with publicly available frameworks, voting mechanisms, and financial information. Compliance with all relevant regulations is paramount.
Community is Key: Transparency and Communication
Community managers should be identifiable. Develop a robust customer service system, even if partially automated, to respond promptly to user feedback. Treat your community as partners, not just users. Regularly share development updates, including code commits, bug fixes, and roadmap milestones, on platforms like GitHub or Notion. Explain internal decisions clearly and concisely in press releases, avoiding jargon. Maintain consistent communication, even during market downturns.
Advisors: Quality Over Crypto-Fame
Instead of focusing on crypto influencers, seek out experienced advisors with proven track records in the tech industry. These advisors should be genuinely invested in your project and actively involved. Publicly list your advisory team, including their credentials and roles. Legal counsel is crucial to navigate securities laws, KYC/AML regulations, and tax obligations. Make your commitment to legal compliance clear.
Why Transparency Matters
Investors are wary of the high failure rate in the Web3 space. Transparency builds trust and reduces this risk. It shows potential investors that you’re building a sustainable, long-term business, not a get-rich-quick scheme. While doxxing carries risks, the potential rewards – attracting serious investment and establishing credibility – far outweigh them.
The Bottom Line: Adapt or Die
The Web3 landscape is rapidly evolving. To survive, companies must adapt. Transparency, legal compliance, and professional conduct are no longer optional; they are essential for success. By embracing these principles, Web3 projects can differentiate themselves from the countless others destined to fail.