Today’s most successful entrepreneurs tapped into their wealth through startup technology companies such as Amazon, Oracle, Facebook and Microsoft. Just ask Jeff Bezos, Larry Ellison, Mark Zuckerberg and Bill Gates, who continue to serve as the world’s tech leaders.
Yet, the stage is still open for additional leaders to join this round table of sorts, and the invitation is floating throughout the blockchain and cryptocurrency space. With leaders such as Binance’s Changpeng Zhao and Ethereum’s Vitalik Buterin, many cryptocurrency companies today are still hoping to capture the Silicon Valley promise: aiming to shift away from centralized businesses and transform existing infrastructures into a decentralized ecosystem while recognizing that traditional Wall Street ventures such as Goldman Sachs have still not felt the need to penetrate this industry.
As the wealth continues to spread across many throughout the industry, the new crypto vogue-rich such as CZ aren’t yet sitting at the same table of net worth as Facebook’s Mark Zuckerberg, who has continued to be in the privacy hot seat in recent years — but they are catching up quickly.
The overall growth and “success” that companies such as Uber enjoyed early on can now be traced back to the participation of its earliest adopters, simply through supply and demand subsidies.
Why reinvent the wheel?
Ridesharing platforms such as Uber and Lyft connect people who need immediate transportation with system-vetted drivers that can provide such a service. The same goes for Airbnb, which connects individuals who need a place to stay with those who choose to offer their furnished homes for short-term rentals. There’s an extremely high demand for rentals surrounding global tech conferences, including but not limited to Las Vegas’ Consumer Electronics Show, Austin’s South by Southwest, Utah’s Sundance Film Festival and the World Economic Forum, for example.
Indeed, looking to two Silicon Valley-based startups such as Uber and Airbnb with users on both the supply and demand sides of these networks only brings home the fact that the blockchain and crypto spaces don’t need to reinvent the wheel or come up with a new growth model. It’s already there.
When Uber first launched, it was faced with the dilemma of choosing which pool of customers to focus on first — the supply side or the demand side — to effectively grow its user base. According to a recent Harvard Business Review case study on Uber, Etsy and Airbnb, these companies focused on a two-tiered growth phase.
The classic phases of growth
The first step was getting the first 1,000 users by focusing on the service side of the equation. In the case of Uber, it focused on offering incentives to black-car drivers.
Uber went on to the second tier of the growth phase where it was focused on the customer side for rideshare users from 1,001 to 1,000,000. The case study mentioned above went on to identify that in their growth phases, Uber…