Anouk Morin | Source | Ditto PR

During the bull market, many traditional companies entered Web3 to make a quick buck. This has inevitably led to an explosion of ‘Web3’ projects that oversaturated the market, and people lost interest over time.

Companies need to provide value and utility. This is where Porsche got it wrong; their first NFT drop offered no real perks to buyers, other than owning a digital version of the 911. A lot has changed during the bear market and consumers want NFTs that hold true value. For example, we’ve seen the rise of phygital NFTs and unlockables, which allow users to connect real-world products to the digital world, bringing more concrete use cases to the space.

Companies need to ask themselves the ‘why’ and the ‘what’. Why is Web3 the right path for our project?” and “what value are we bringing to the table? Web3 is a means, not an end. Companies should not rely solely on it to make money - Web3 can see right through this - it should just be a new medium of expression.

“While the SBF trial deals with fraud, a problem not confined to the crypto world, there's a genuine fear that it might cast a dark cloud over the entire crypto industry. We should look at FTX as a cautionary tale: too much undue attention and focalisation on one actor can negatively affect an industry. Sam Bankman-Fried was a very prominent figure in the crypto world and received substantial attention from both the industry and the media, including Forbes and TIME covers. When the scandal unraveled, it had repercussions for the entire crypto industry. Hopefully, we can learn from our mistakes and exercise caution when lauding projects and their founders, especially in emerging tech spaces where hero-worship can become a problem.”

“In the next few weeks, and after the trial's conclusion, crypto companies must be strategic in their external messaging. While the crypto world is made of diverse communities, from Bitcoin maximalists to Ethereum evangelists, for the greater good, they must all collectively move beyond the FTX controversy and project a message of unity. In bearish markets and amidst scandals, a strong communication will be essential to show the public that the space is still holding on strong and actively building”