Image credit:pixabay
There was a time in crypto space when utility of a coin coupled with fundamental analysis can pave the way for its performance in the market. These days a lot has changed or is still changing in crypto space. In fact, crypto is a wild west where weird things happen.
First, let's define what utility is all about. Utility of a coin refers to the use case of the coin. It simply refers to what real problem a coin can solve or provide a solution to.
Some crypto projects/blockchains come up with protocols and algorithms that help solve real world problems. In fact,they have utility but there is no significant increase in the value of the tokens in the market.
Why ? This boggles the mind and leads me to write this piece.
The answer is simply Marketing. Yeah, marketing. I have come to realize that marketing is such an important tool in crypto space. A coin can have all the utility it can and once it doesn't have a good marketing team and strategy, it is bound to fail.
The marketing team of a project strive to promote the project, its utility,visions/roadmap,etc. In fact it is responsible for creating awareness for the project work through contents, collaborations,social media visibility giveaways, etc.
In addition,a project should have a unique utility that can differentiate it from other projects. Unique utility because some other blockchains might be solving the same problem it is solving. Unique utility in the sense that their competitors aren't doing close or even better yet than what they are doing. This requires smart work and innovations on a regular basis.
Furthermore, a strong community base can affect the performance of a coin in the market. Members who keep talking and creating hype for a coin can help influence the price of a coin by making investors invest in it. This is because in crypto, sentiments and hype works a lot. Take for instance, the Shiba Inu coin, although with no real utility but the community behind it and the hype is making people invest in it.