This is part of a series of interviews with founders and builders in the Web3 space called the Web3 Growth Handbook. The official handbook will be released in the coming months, but you can read all of the other available interviews here.
"The most difficult part of growing LinkDrop is how early we are in the blockchain space. There are not many web3 companies that have revenue, so I guess the main challenge is that companies can’t measure long-term value of customers and they can’t justify spending money on getting new customers."
User adoption is one of the ongoing concerns across the entire Web3 space. While many are still focused on building the infrastructure to support eventual adoption, others are ready to onboard the 99% who don’t know anything about crypto. One such company doing just that is LinkDrop. LinkDrop makes it easy to create customer acquisition campaigns that utilize crypto. Through a simple link, a company can onboard new users and even distribute crypto assets. Founders Artiom Ignatyev and Mikhail Dobrokhvalov believe fully in the power of easy onboarding and user growth through referrals.
Founded in March of 2019, LinkDrop went through the second cohort of the Consensys Labs startup accelerator program, Tachyon. Since the program ended, they have been busy attracting attention from some of the biggest names in the industry. LinkDrop provides an intuitive interface for designing onboarding and referral campaigns that can kickstart the adoption of decentralized projects by non-Web3 users. Through non-custodial onboarding tools, asset transfers, and analytics, LinkDrop gives developers the tools to onboard the next million users.
We had the chance to speak with both Artiom and Mikhail about their growth thus far, struggles that impact them and the entire industry, and what needs to happen to overcome some of the growth issues facing Web3.
How do you define growth at LinkDrop?
We define growth as the number of companies using our services. We track the number of campaigns and number of transactions flowing through LinkDrop. Our main metric is the number of transactions as a result of LinkDrop campaigns. We are also tracking the number of new users brought into the space via campaigns.
What has been the most difficult part of growing your company so far?
The most difficult part of growing LinkDrop is how early we are in the blockchain space. There are not many web3 companies that have revenue, so I guess the main challenge is that companies can’t measure long-term value of customers and they can’t justify spending money on getting new customers.
It’s hard to solve for being early, so what do you think needs to happen to help with growth as a whole?
I think the companies should have a product that they can charge for in order for us to overcome this. They need steady revenue. I hope companies like Wyre and Moonpay can help with that because they simplify on-ramping users. If more companies can integrate with them, it will help with adoption of the products these companies make. An example of one good business that has value for regular people is PoolTogether. So I hope simplifying the UX and onboarding will bring more people to companies like that.
What tools do you wish existed to help with growth?
Identity solutions would be beneficial because it would solve the wallet problems. Currently, there are many wallets but they are still hard to use. We control most of the UX issues in LinkDrop, so I don’t think it’s the biggest priority, but it’s important to the rest of the space.
What are your predictions for Web3/Blockchain growth in 2020?
I hope we will see some use cases that will be attractive for the mainstream. I would guess something like PoolTogether would be the type of use case that drives normal adoption.
Founders and developers in the Web3 space should focus on user adoption. When they do, LinkDrop can provide the tools to help refer and onboard new users. Check them out today.