Why Every Crypto Founder Must Master Political Strategy

Absolutely, it seems many of you find politics either confusing, unimportant, or even dislikable. However, it’s crucial to acknowledge that having a grasp on political dynamics or using political influence can significantly impact the success of your endeavors. Ignoring this aspect might lead to failure.

Politics is everywhere. And I’m not talking about your local government or national elections. I’m talking about the everyday politics that influence every decision,, success, or failure in the world — even in your new protocol. To succeed, you must understand what really motivates people, how to direct a divided community toward your goals,, and how to communicate your vision clearly. Unfortunately, most founders don’t get politics. They probably watched Silicon Valley instead of Veep or House of Cards. The word itself makes them sick. They make the crucial mistake of not knowing how the game is played and what drives our world.

Why politics matters

You might assume that since cryptocurrency is decentralized, it’s free from politics. However, I must laughingly dispel this notion: politics are indeed present in the world of crypto, perhaps even more so due to its open nature. Navigating the intricate and demanding political landscape of crypto is crucial; without a grasp of the various motivations and interests at play, and an ability to form alliances effectively, you may find yourself in for a bumpy ride.

How would you approach being a politician? Let’s delve into some tactful methods for navigating the political landscape. For those not initiated into politics (or those yet to take the “red pill” of politics), diplomatic maneuvers can appear covert, underhanded, or even dishonest. However, it’s essential to understand that this isn’t always the case. Politics is more like a game of chess, where every player and their power are visible on the board for all to see. All possible moves and strategies are out in the open. The challenge lies not just in knowing these moves, but in executing them skillfully using your intellect and influence.

Politicians across parties will collaborate when they see mutual benefits, as the power structures are evident to all participants. In their interactions, politicians are straightforward rather than evasive. They understand the game’s mechanics, and they strive to emerge victorious. However, they recognize that solo victories are impossible; they need their party members, and sometimes even their opponents. When the rules of engagement are clear and accessible, it promotes transparency and directness, which in turn encourages action or execution. Interestingly, this open environment can actually foster cooperation and progress.

Four Personas That Drive the Game

In the realm of cryptocurrency, the figures who can significantly influence your endeavor are as varied as they are numerous. There’s the profit-seeking traders, the problem-solving builders, the boundary-pushing tech enthusiasts, and the compelling storytellers. Each group has its unique ambitions, passions, and at times, conflicting objectives. The challenge for a successful leader is to discern these differences and find a way to bring them together in pursuit of your vision. From this moment on, you are an aspiring president tasked with uniting four distinct factions into a formidable coalition to achieve your mission: empowering the people (end-users), ensuring security, fostering wealth, promoting prosperity, and building a promising future.

To put it simply, how can you align diverse or even conflicting groups towards a common goal within the dynamic crypto market? The key lies in thoroughly grasping the four main personality types that influence this market significantly.

1. The Tech Purist: Here for the Tech

Tech enthusiasts aren’t concerned with the value of your digital tokens. They’re drawn to the technology itself – always eager for groundbreaking technological advancements such as novel consensus mechanisms or advanced encryption techniques. If a development stretches the limits of coding or algorithms, they’re fully invested. However, don’t anticipate them to focus on earnings, popularity, or market performance. Figures like Vitalik Buterin and Nick Szabo are primarily dedicated to the code and technology, rather than marketing or branding. They will thoroughly analyze your whitepapers, examine your security measures, and engage in extensive discussions about scalability. Overlooking them could mean losing the support of those who can verify your technology’s authenticity.

2. Traders: Here for the Money

On one end of the spectrum lies the trader who is often skeptical, astute, and perpetually seeking the next major opportunity. To them, the crypto market is essentially a colossal casino, and their primary goal is to maximize profits. Profitability is the sole key performance indicator (KPI). As for technology, it’s merely a narrative or a tale used for trading purposes. They’re always assessing whether your innovation has already been factored into the price or if there’s still potential for further growth. One day they might pump your project and the next, they’ll dump it. If you aspire to attract figures like Arthur Hayes or Andrew Kang, you need to offer something that justifies their investment. However, bear in mind that they’re not interested in long-term investments; they’re here for quick profits and then moving on. Grasping their strategy might help keep them engaged with your project for a while, potentially benefiting it.

3. Builders: Here for Changing the World

Apart from innovators, there are also storytellers. They aren’t merely present to captivate—they exist to resonate with their audience. For them, blockchain is not simply a tool; it’s a means to address genuine issues in society. They identify the shortcomings of existing structures and aim to rectify them, brick by digital brick. Unlike tech purists, they aren’t fixated on the technology itself but on the difference it can create. They understand the intricacies of the market and trading, yet consider these aspects as a supporting role compared to their primary objective. Charismatic figures like Stani Kulechov or Hyden Adams can either elevate or dismantle your project because they will collaborate with you on design, expand upon your project, promote its adoption, and ultimately bring your vision to life for the world to see.
4. Narrators: Here for the Community

Introducing journalists, publicists, and content creators – the storytellers, influencers, and information disseminators. They serve as intermediaries between technology, markets, and the general public, particularly in fast-paced and intricate domains such as cryptocurrency. In this dynamic landscape, their roles become indispensable. They collect, analyze, and simplify data for broader consumption. Their narratives carry significant weight, shaping or reshaping projects based on their presentations to the world. Some are factual reporters, letting the audience decide, while others aim to build a following, gain recognition, and impact the market. Regardless of their approach, they’re valuable allies for any project. Without figures like Laura Shin or Bankless, your project is merely a ripple in the crypto sea.

Navigating through your professional responsibilities isn’t a walk in the park; you also have to deal with those who control access – the regulatory bodies. These range from law enforcement agencies, government departments, to your company’s legal sector. Their roles are multifaceted: they oversee securities, derivatives, and futures markets, handle tax implications, enforce anti-money laundering (AML) policies, implement know-your-customer (KYC) regulations, and monitor practices to prevent financial deceit. In essence, their supervision is extensive.

Building a Coalition That Works

As a founder, it’s essential to recognize that while having a great idea is crucial, it’s just the beginning. Now, your task is to orchestrate an alliance encompassing these four personas, along with the gatekeepers. This alliance should be structured in such a way that each member has a designated role at the table, reflecting their influence and potential contribution to the success of your venture.

It seems you’re aiming for prestigious venture capital firms to invest in your vision. You desire exceptional development teams to construct on your platform. You seek robust security measures to prevent breaches and maintain privacy. You aspire for rapid expansion, gaining widespread recognition, securing podcast interviews, and television appearances. Your goal is to amass Total Value Locked (TVL) from around the world. You aim for substantial revenue, competitive fees, and a token that surpasses market performance. You wish your airdrop to have significant impact. Lastly, you hope to attract numerous end-users to your innovative project, aiming for it to soar, become a market leader, and ultimately dominate the industry.

To illustrate EigenLayer’s approach, consider this example: The team skillfully struck a balance with EigenLayer. They didn’t solely concentrate on the technology, although their novel concept of shared security drew the attention of tech enthusiasts who joined the security committee right away to enhance risk management. Simultaneously, they ensured sufficient venture capital funding and incentivized traders using a scoring system, thereby attracting Ethereum for staking which fortified the platform. Builders recognized its potential to address real-world issues using AVSs, utilizing Ethereum’s security. It’s also essential to acknowledge the role of communicators who publicized the concept of restaking, discussing the ramifications of this new innovation on various platforms. This is a testament to what can be achieved — uniting diverse parties with varying objectives, adhering to established rules (successfully thus far), to create an enduring and valuable entity (and one that appears promising on paper).

Navigating conflicting interests

If you can’t find a balance and don’t bring a well-rounded approach to your project, several key players may respond negatively. For instance, The Tech Purist might point out flaws in your code and discourage the core community from using your smart contract. The Trader could exploit your tokenomics for their gain. The Builder might opt for a competing platform instead. And the Storyteller could publicly discredit you in front of potential supporters. There’s also a chance they might ignore you or never even learn about you, which is similar to what happens to unsuccessful politicians – they lose support and fade into obscurity because they don’t understand or follow the rules that matter to their audience. To avoid this fate, make sure you cater to all relevant parties in your project.

Consider it as forming an alliance in politics. A powerful alliance doesn’t necessitate everyone sharing the same views on every topic. It needs each member to identify a piece of their own benefits within the collective objective. That’s what you should aim to establish. You aren’t simply a founder, but a political figure, a negotiator, and a tactician. If you can master this skill, you’ll achieve more than just success; you’ll lead.

Keep in mind that the opinions shared in this article belong solely to the writer and may not align with those held by CoinDesk Inc., its proprietors, or its associated entities.