I first learned about stepn in January 2022. I saw mapleleaf’s share from my circle of friends: running 9 kilometers can earn about 1000 RMB. Later, I learned that he was an angel investor of stepn. At that time, I intuitively thought that stepn was the same as the fun step in 2018. It was still a Ponzi game without changing the soup.
After in-depth research, I found that its token model fully learned from axie infinity, no longer simply pulling people to do games like fun steps, with high playability and scalability, and established a mapping relationship between crypto and the real world. Later, it became the largest out of circle project in the history of block chain. I boldly infer that behind the circle means the beginning of the Web3 wave.
Since defi summer, most crypto projects have not been out of the circle, but the funds in the circle have been transferred between different projects until the NFT explosion began to have the trend of out of the circle. At present, the market liquidity is getting worse and worse, the stock users are lack of activity, and the new users are lack of stickiness. The main players in the market are looking for a new growth engine. Under various reasons, Web3 out of the circle will become a popular road, and this will also be the biggest opportunity in 2022.
Many friends outside the circle often ask me, what is the landing of blockchain? How to participate in Web3? In the last three months, I have recommended stepn and even offered to share it with some runners. The popular spread of stepn includes the bottom needs of crypto practitioners who want to be recognized by the outside market, as well as the inside curiosity and desire of outside users in the traditional market.
Of course, some people say that the explosion of stepn comes from the father of binance, but there is no chance. Even if binance doesn’t end, there will be other major players in the market. Binance spared no effort to promote, mainly because stepn can indeed transform a large number of new users and activate existing users. Good fathers should also strive for success.
It is not difficult to find that the main elements of stepn success are:
- Timing: according to the research of an entrepreneurship scholar in Silicon Valley, timing is the most important factor in the success of the project, and the entry time determines everything. Crypto has been looking forward to a burst of models in the circle for a long time. Stepn also took over smoothly after the explosion of NFT and gamefi.
- Product market matching: stepn not only meets people’s desire to make money, but also advocates a healthy lifestyle to meet the advanced needs of human self realization.
- Ingenious GTM strategy: KOL of all kinds of social media spreads spontaneously. Running and clocking in can easily stimulate the psychology of “showing off”, which is conducive to the rapid growth of customers.
- Main outcome: binance aims at the opportunity to vigorously promote stepn. At present, the market is depressed and the stock capital needs a carnival.
GTM strategy is crucial
GTM’s full name is “go to market”, that is, the strategy for products to enter the market. Defi developers don’t pay much attention to GTM strategy, but in the Web3 wave, if a product wants to realize large-scale application, it needs not only to build community culture, but also to formulate efficient GTM strategy in order to continuously obtain a large number of users.
Why do application-oriented products need to pay attention to user scale? Because the user scale brings network effect, it determines the breadth of the product moat. The head effect in web2 is very obvious, so web2 companies try their best to increase users and occupy the city first. Web3 is no exception. Head players will have more competitive advantages. Therefore, GTM strategy is very important.
Web3 products may break out easily in the early stage by virtue of token incentive, but if the GTM strategy is not carefully designed, users are easy to lose significantly after the marginal reward decreases, and can not form sustainable growth. Therefore, a good GTM strategy can be considered from two aspects:
The significant difference between Web3 and web2 lies in openness. Web3 should go to platform thinking and no longer be large and comprehensive of all in one, but focus more on product plug-in and become a part of other Web3 products. After free market competition, excellent products stand out. Although they are open to each other, the benefits of comparative advantage will give birth to the winner position of the head.
If a product is composable, it will be easy to integrate into the Web3 ecosystem. Whether it can be combined or not mainly depends on how to interact with the super players of the product, such as other project parties, independent developers, community KOL, etc. If it can be incorporated into the portfolio, it will not only quickly obtain customers and achieve growth, but also help to establish public praise. It will be difficult to be replaced by later developers in the later stage. In the Web3 world, openness is the best GTM strategy and the broadest moat.
- Net recommended value
In 2003, Fred Reichheld proposed the concept of “Net Promoter Score” in Harvard Business Review, which is called NPs for short. In short, NPs assesses how likely users are to recommend products to others, so as to measure product reputation and user loyalty.
The specific calculation formula is: NPs = percentage of total recommenders – percentage of total critics.
Web3 pays more attention to individuals and users have stronger self-awareness. Therefore, using Hukou monument is more important than traffic. This is also reflected in the market valuation. Many Web3 products have only thousands of daily lives in the early stage, but the valuation is more than 100 million. How to evaluate the potential of a Web3 product? In the early stage, it depends on whether it can meet the user’s self imagination, whether there is enough motivation to show off, and whether the user is actively spreading.
According to Maslow’s demand theory, generally, products that meet the high-level needs of users have high recommendation values, such as design needs, respect needs, self realization and so on. If a product can be actively recommended, it will gain high trust and sustained attention. At the moment of scarce and expensive traffic, this has been more than half successful.
Nansen and discord value chain snowball products.
After receiving the invitation code, I participated in the deepgo internal test as a seed user. According to my project evaluation criteria, it will be analyzed from four aspects, including:
- Whether the product is addictive: after exploring, we found that deepgo has strong playability, but can it attract super users in the industry and be urgently needed by them?
- Whether the GTM strategy is effective: social products naturally have strong interaction. GTM strategy can emerge in endlessly, which is easy to split marketing. Can deepgo become the leader of social fi?
- Is the strategy scalable: if deepgo can win people’s hearts and become a gathering place for Web3 investors, what expansion will it have in the future after both flow and liquidity? Do you have sufficient bargaining power?
- Whether the token captures value: the token is a key part of the ecology. While effectively building a defensive moat, can it have an inevitable appreciation logic?
For ordinary users, deepgo is a bit like a snowball on the chain. It is a Web3 investment and research community of social to earn. For KOL, deepgo establishes its reputation in the chain and obtains more loyal fans. It is an infrastructure tool that can easily build Dao. For the crypto project side, deepgo has built a Web3 project circle, gathering users who hold the project token, which is more efficient than the discord community management method.
Of course, there are some problems with the product, such as the user interaction is not particularly smooth, and there is still a lot of room for optimization in the follow-up.
GTM strategy (8 / 10)
I have been immersed in the deepgo community and communicated with its operators. Their GTM strategy is product driven growth, that is, the popular “PLG” in Silicon Valley, which realizes growth through the matching of core values of products.
According to my understanding of deepgo, if you want to get out of the circle and become a star product, you should focus on three aspects:
- Data identity plug-in
Deepgo analyzes the reputation of each address in the chain, such as how about the return on investment ability? How is the risk control capability? In which Web3 circles are you active? Users’ reputation on the chain can be applied to many scenarios of Web3, such as loan agreements, social products, etc.
Deepgo should be similar to cyberconnect to build a social graph protocol and support more calls from Web3 developers. Cyberconnect has gained 100000 early users in just a few months through the open protocol standard.
- Tool value
For the Web3 project side, the deepgo circle gathers token holders, summarizes the data on the chain, visualizes the cash flow of the holders, and finally generates the analysis chart of the holders of the project side. The innovative project evaluation method can reflect the mobility quality and social heat, and contribute to the brand appreciation and traffic improvement of the project party.
In addition, the project party selects KOL through the reputation on the chain, and the transparent cooperation will greatly improve the efficiency of the project party’s airdrop cooperation. After accumulating a certain amount of user traffic, deepgo can also cooperate with some products to drain them and provide users with more additional services.
- Out of circle cooperation
In the investment circle, most users like to stick together, so they are more concentrated, which gives birth to snowball, eToro and other investment community products. If deepgo wants to become a gathering place for Web3 investors, it should also focus on the traditional investment circle, such as cooperating with snowball V to build a reputation on the Web3 chain.
In the environment of gloomy stock market, many traditional investors gradually care about the field of Web3, but they have never had the opportunity to participate. Therefore, it is not difficult to attract snowball V to settle in. There are many marketing methods for social products. If deepgo combines high-level methods such as NFT and social to earn, it is easy to obtain a large number of incremental users outside the circle.
Strategic expansion (8 / 10)
Recently, more and more newcomers from outside the circle have joined Web3. The better choice is to join or set up Dao, such as social Dao, developer Dao, investment Dao, etc. In decentralized autonomous organizations, it is easier for newcomers to understand the panorama of Web3, and it can be expected that 2022 will probably be the first year of Dao.
Deepgo’s circle is the prototype of Dao, but it is far from enough. Deepgo mentioned in the roadmap that 2022 Q3 will become the infrastructure of Dao and the initiator of Dao, which is worth looking forward to. At present, there are many Dao tools on the market, but most of the functions are weak and lack of stickiness. I have experienced many so-called Dao tools, which are not as good as web2 products such as notion and discord in the end.
Based on the reputation built by behavior on the chain, deepgo users maintain high stickiness through circle social networking. With the provision of traffic and mobility, deepgo can easily become a Dao if it further cooperates with more Web3 infrastructures_ OS。
Each Dao will bring large-scale incremental users and eventually form a Dao economy – which is a bit similar to the public chain. Many application projects are derived from the public chain, so the value of deepgo will be increased ten times.
The seed round investment of NGC ventures has not been listed in the Institute. At present, it is in the stage of product internal test. According to the white paper, the token value of deepgo is highly integrated with the application scenario, and most of its users also need to become coin holders.
The appreciation of deepgo token mainly comes from:
a. Dao War: the more deepgo tokens you hold, the greater your voice in deepgo’s Dao economy.
b. Liquidity control: the more deepgo tokens you hold, the more liquidity quota you will guide or allocate. As a Web3 aggregator, deepgo will provide mobility services for major protocols.
c. Profit Repurchase: deepgo Treasury will repurchase deepgo token every quarter, and then burn and destroy it. Treasury profit mainly comes from users’ demand for core functions, such as group building, Dao building, etc.
Through social connection, deepgo captures the network effect of Web3 and constructs a moat. Coupled with the combination of token economy, it will be more defensive.
General evaluation of the project
Deepgo has the opportunity to become the infrastructure of the meta universe and the Web3 entrance for ordinary people in the future. Focusing on the investment theme is a wise entry point. Both users in the circle and newcomers outside the circle can easily be clearly marked as “fomo” by real wealth, with unlimited expansion in the future.
Most investors like to share actively. If the product can meet the user’s self imagination, pay attention to “showing off and sharing” and “being different”, combined with high-level playing methods, it will be very helpful to the secondary communication, so the growth of deepgo will be more rapid.
Deepgo is making a rare attempt to build its reputation on the chain, capture the network effect of Web3 and build it into a Web3 aggregator. While catering to the great opportunities, deepgo will also face various challenges. Can deepgo detonate the circle? Let’s wait and see.
2022 is two words, out of the circle!
After the explosion of stepn, there are many x2e imitation disks, but it is of little significance. “What will surpass stepn in the future is not the imitation plate, but the essence of going out of the circle in 2022”. If you can’t see this, you will only be cut into leeks again; And if you can see through the essence in a second, you can keep catching unicorns.
Great Web3 products should not be limited to one corner. The goal should be to reshape the traditional business and show their strength in the vast world, so as to make a large-scale circle. Unfortunately, at present, most products in the coin circle do not pay attention to the GTM strategy and are not aware of the value out of the circle. As a result, the most promising products in the market are discord, notation and other web2 products. Although these are centralized platforms and do not issue tokens, they are more open and composable than many Web3 products.
“Some people go to the examination room at night, some resign and return to their hometown”. Since the popularity of NFT in 2021, the old generation of crypto has gradually subsided, and the new generation of players have stepped on the stage. Times have changed. How to capture the next stepn? We need to re-examine the rules of the game so that we can keep pace with the times in the wave of Web3.