Over the last few years, I researched more than 1.000 crypto projects and wrote many articles to share my insights. Every year, hundreds or even thousands of new cryptocurrencies and tokens launch. But few survive the competition.

Most of the projects’ fate is to end up forgotten by the community with their tokens approaching zero value. There are many reasons why a project fail. Unable to attract users is one of them. In this article, I will tell you 9 reasons why many crypto projects fail to attract users.

1. Having names that are difficult to spell and remember

HalloweenShibaZilla, PummpshibaXX, and Shibadogebitcoin Inu. You won’t believe how many coins and tokens there are which contain the phrase ‘shiba’.

I can understand that when thousands of coins are out there, it becomes hard to find a name that sticks. But crypto is international. When giving a name to a project, it is important to find one that is easy for users to remember. It should be simple, not too long, and not difficult to spell.

2. Not providing enough precise information about what the project actually does

Unfortunately, a lot of projects don’t do a good job when it comes to explaining to potential users what they are all about.

For example, almost daily I see Twitter accounts that only offer very vague information in their bio such as “built by the people for the people”. That’s nice and all but as a first-time visitor, this doesn’t tell me anything about what the project is about. As a result, people feel confused and probably lose interest to read further.

Similar problems exist with the websites of many crypto projects. In the best case, visitors should be able to get the most important information within seconds. The page should briefly address the following:

Furthermore, other resources such as white papers, use case descriptions, roadmaps, and more should be accessible with as few clicks as possible.

The problem: Many projects get lost in marketing fluff and endless details without really becoming concrete.

3. Super fancy website with animations that are difficult to load

I am probably nitpicking here but this is something a lot of projects do and I find it annoying — creating complex website animations that look super cool, take forever to load, and ultimately do little to help with understanding the project.

Don’t get me wrong. It is good to be creative and show how unique your project is. However, make sure to build something that is easy to load for people who have just average-speed internet. Also, the animations should not be too long. The average first-time visitor stays only 8 seconds on your site. Use this time wisely or potential users will lose interest and go somewhere else.

4. Assuming users already know the technology

According to TripleA, crypto users only account for about 4.2% — of the global population. As an active part of these approximately 420 million people, you quickly forget that many people have never had anything to do with blockchains and crypto. And even for those who deal with developments in the crypto space on a daily basis, it is becoming increasingly difficult to keep track.

The following graphic illustrates this:

While many new crypto projects aim to reach out to people outside the orange circle, they don’t provide the necessary foundation these people need to get into their projects and crypto.

In order to increase awareness, understanding, and adoption, detailed tutorials and documentation are vital. For example:

5. Launching a crypto project at the wrong time

I analyzed 1.600 ICOs to see which ones performed best:

One finding was that it plays a major role in the performance of a crypto project whether it is launched during a bull market or a bear market.

New coins and tokens usually do not perform well if they are launched during a bear market. That’s because when the markets are down a lot of people leave the crypto space. The hard truth is that a great project launched at the wrong time will perform much worse than a crappy project launched at the right time.

6. Failing to build a strong community and not engaging with the community enough

Strong communities are essential for success, as crypto projects thrive on the network effect. Accordingly, sufficient resources should be provided for the community to grow rapidly. This includes the production of engaging content as well as the quick answering of user questions via various channels.

While good marketing and community management don’t solve all problems, they are usually the pillars of success. There are many mediocre projects that hold a spot in the current top 100 largely because of their dedicated community.

7. No real use case

In my opinion, this is one of the main problems of many new crypto projects. People will only use new tech or product if it brings significantly greater value to them.

For example, Coingecko is currently tracking over 400 NFT projects. Now I don’t know how saturated the market is. But it seems to me that many new projects will have a hard time penetrating the market unless they have very strong partners.

And the same can be said for many new projects in other areas. For example, many projects issue their own tokens which do not add any value to the project or the users.

8. Bad user experience

This is a persisting problem that has multiple reasons.

One of them is crypto’s inherent complexity. Even one of the most technically capable people in the crypto space, Vitalik Buterin, recently admitted that using the technology is difficult.

Wallets, key management, and many different platforms make it difficult for beginners to find their way around.

In addition, there is often a bad user experience due to bad designs. Over the years, this has gotten much better, since various design standards have now proven their worth. However, this is not the case with many new crypto projects and users have to deal with products that are difficult to use.

Many providers try to simplify the user experience by cutting corners and centralizing certain functions — the opposite of what crypto should be.

9. Poor risk management and security issues

Each year, many crypto projects get hacked. Critical security incidents are poisonous, especially for new projects.

In one of my previous analyses, I found that after a crypto project is hacked, the value of its token decreases significantly. That by itself is not really surprising. But what I also found is that most of the time, the prices of affected projects never recover.

In some cases, a loyal user base will forgive established projects when security incidents occur. However, most new projects do not have this luxury. That’s why safety must be taken seriously from the very first minute.

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