Importance of Strategic Crypto Partnerships
Strategic crypto partnerships have long been essential to a company's growth strategy. It's the same in the world of cryptocurrencies.
Have you ever wondered how well-known crypto brands co-exist? Alternatively, why are some crypto exchanges more successful than others despite the market fall?
Undoubtedly, this year has caused so much pain for the traditional and crypto markets.
Despite the ongoing crypto winter, many big-name cryptocurrency brands and influencers survived and maintained their global presence.
The primary reason for how web3 founders, influencers, and brands are able to maintain their presence far and wide is their strategic crypto partnerships.
While the investors’ sentiments are down since the crypto market is showing bearish tendencies, the surprising fact is that the crypto space has witnessed a number of partnerships formed through the year 2022.
Web3 founders, influencers, brands, and celebrities look at strategic alliances as the best means to gain popularity.
In this article, we will look at successful examples of strategic collaborations between crypto enterprises and how they influence the market.
What are Crypto Partnerships? The Idea & The Concept
Collaborating with well-known brands and influencers is the most effective business development strategy. Thanks to crypto partnerships, brands can now reach a larger audience without investing a lot of time in generating leads that eventually become consumers.
Crypto institutions can position themselves as creative and reliable name by partnering with brands and vice versa. These alliances help in expanding the audience base and serve as a great way to capture the attention of the influencers and customers.
The concept of the strategic partnership came to the cryptocurrency industry by more established corporate sectors. Simply put, it refers to a win-win idea and long-term economic relations between two parties. Thus, a collaboration that benefits both parties is formed.
Each partnership is unique. Some businesses collaborate to develop brand-new products or services. Others wish to broaden their consumer base, attract new customers, or enter a specialized industry. The partners may also work together to undertake fundamental research and publish the most recent market report. It is always based on industries, businesses, and their objectives. Regardless of the specific business goals, there are 5 main reasons for strategic partnership:
- Lowering risks
- Reducing costs
- Driving innovation
- Outperforming competitors
- Dealing with regulatory barriers
Added Advantage for the Community
While no doubt collaborating businesses would have mutual benefits, it is unclear how customers will benefit from these alliances. Such initiatives typically result in premium products and solutions because both companies want to draw in more customers and boost revenue. Partnerships also help young startups mature, which may benefit a certain industry or the entire crypto economy.
Types of Crypto Partnerships
In the web3 space, 3 types of crypto partnerships usually take place.
1.) Paid Partnerships
In Paid Partnerships, an influencer or institution is compensated to promote your brand via storytelling and marketing in different spaces. These influencers have a sizable fan base in their specialized fields. A partnership of this kind often lasts from one month to six months, depending on how the community and market react.
Motivated by a vision and targets, the best crypto partnerships occasionally assist web3 and cryptocurrency companies in optimizing their marketing and promotional activity.
2.) Pro Bono
Pro Bono partnerships are designed to assist people in developing their professional skills or learning current industry trends. This type of collaboration is often small but provides excellent opportunities to sell products or services.
To scale their web3 products, for instance, a Singaporean start-up called Lumos Labs collaborates with various educational platforms. Both parties benefit from the collaboration. The crypto partnerships that provide fundamental value rather than just money are the greatest.
3.) Venture-backed Crypto Partnerships
Deserving start-ups or initiatives are funded to scale their products through a crypto partnership supported by a crypto foundation or non-profit organization.
Algorand, for instance, provides an accelerator program for its ecosystem partners to use financing to extend their services, build teams, hire people, and create and test dApps. The most effective example of venture-backed partnerships is the most recent Polygon-Disney accelerator program.
The Polygon team will receive coaching and product insights from user behavioral research and surveys as part of the Disney accelerator program.
5 Biggest Crypto Partnerships
Explore 5 biggest alliances of the cryptocurrency industry so far.
1.) Coinbase Strikes a Deal with Mastercard
Coinbase has teamed up with Mastercard to “classify NFTs as digital assets to allow a wider set of consumers to buy NFTs,” in line with its objective to “promote economic freedom in the globe.” The first cryptocurrency exchange to go public intends to “unlock” a new Mastercard card payment method very soon.
2.) Tesla Teams Up With Block and Blockstream
Tesla is working to build an open-source, solar-powered Bitcoin mine with Block and Blockstream. The 3.8 megawatts solar PV array and 12-megawatt-hour Megapack from Tesla will power the mining complex. This would show that Bitcoin mining can be carried out using renewable energy on a massive scale.
3.) FIFA Ties Up With Algorand
This collaboration will make a blockchain-based wallet usable for the 2022 World Cup in Qatar. FIFA and the blockchain startup Algorand have inked a sponsorship and technical collaboration deal. The deal states that Algorand will offer a “blockchain-supported wallet solution” as FIFA’s official blockchain platform.
Alogrand will also serve as an official sponsor of the FIFA Women’s World Cup Australia and New Zealand 2023 and a regional supporter in North America and Europe. Alogrand will help FIFA develop its digital assets strategy in return for FIFA providing sponsored assets like advertising, media exposure, and promotional possibilities.
4.) YallaMarket Partners with CoinMENA
The UAE grocery market delivery service YallaMarket will now accept $USDT and $USDC stablecoins on its app in partnership with the Bahrain-based cryptocurrency exchange CoinMENA.
5.) Binance and Khaby Lame Team Up
Binance roped in the popular Tik Tok artist, Khaby Lame, to educate the audience about web3. Khaby will explain web3 as a subject in his distinct approach.
Lame said in a statement –
“I’ve been curious about Web3.0 for some time and jumped at the chance to partner with a leader like Binance because it aligns perfectly with what I usually do: make complex stuff easy and fun for everyone.”
Check out this video for other popular crypto partnerships.
Partnerships are Important
As you can see, all of the above crypto partnerships have some greater objectives. Each one aims to boost its market share by gaining access to a big pool of potential customers in markets throughout the globe. Additionally, they will see themselves collaborating with industry leaders as they build a stronger brand and product for their clients.
These collaborations are also critical for the larger blockchain sector – the stronger the use cases, and the more people aware of crypto and who use crypto, the faster the adoption rate will be.
Although there is no shortage of partnerships announced in the cryptocurrency industry, many of them are merely created for public relations purposes. They rarely have the same substance as those mentioned in this article.
The only way digital currencies and cryptocurrency projects will be successful is by developing solid products and solutions used by people worldwide. Projects will need to form the appropriate strategic crypto partnerships in order to provide those products and services—at least ones that will succeed.
Elevate Your Project to a Higher Level with UniFarm
Today, UniFarm has become a synonym for helping retail investors diversify their crypto portfolios. We’ve pioneered the token-farming pool model that has seen 100+ DeFi projects across 37 Cohorts.
We’ve helped our 100+ crypto partners achieve their marketing objectives in a short span of time.
Get in touch with our Partnership Head, Nayan Mathur, for a free consultation.
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