Measuring the success of cryptocurrency businesses differently

Measuring the success of cryptocurrency businesses differently

While it would improve consumer protection and market integrity, it would not end the reckless and fraudulent behavior that we have seen in recent years. One example among others: the indictment for having defrauded thousands of investors of the former boss of the FTX platform last December.

According to HBR, there should also be a review of the criteria for measuring the success of these companies which are obsessed with the price, market capitalization and trading volume of competing coins – which attracts “bad actors”. The market should pay more attention to dimensions that closely track progress against the actual needs of consumers and businesses.

In an environment based on price and market capitalization, it is possible to launch a new cryptocurrency token to quickly create a network worth billions of dollars — at least on paper.

In truth, these sky-high valuations are created by limiting the supply of available coins, but they can crash just as quickly when the machine behind them slows down.

This way of doing business is conducive to exit scams and scams that hide well and thrive among legitimate projects.

There is an “urgent need for better metrics” to measure the progress of cryptocurrency companies, argue the authors.

The new metrics should be closely aligned with the impact a crypto app hopes to have on the world.

For example, entrepreneurs who want their cryptocurrency networks to replace traditional payments should compare their growth to the same metrics used by payment operators. They should also measure the savings that consumers and businesses realize by using crypto. These new measures will quickly highlight the benefits that technology brings to society.

In short, a return to basics that has considerable benefits by providing investors, consumers and even regulators with a much better assessment of the possibilities offered by cryptos.