The cryptocurrency market has been on a bullish streak in recent months.
Bitcointhe first and most famous cryptocurrency, has made headlines with its continued price increases.
But cryptocurrencies are more than just investments for businesses; they also open doors to innovative new revenue streams.
This article explores the different ways companies are benefiting from the crypto revolution beyond trading, from the growing world of decentralized finance (DeFi) for crypto fundraising.
Finished? Let’s learn a little more about crypto methods to make money.
Crypto Fundraising
ICOs (Initial Coin Offerings) are fundraising mechanisms that allow companies to raise capital directly from their customer base, which they sometimes call “communities.”
They build these communities from social media campaigns in which they offer perks to people who subscribe to their product or service, also called ‘lead magnets’. They then sell further services to their army of followers via email series, with ICOs being one of the latest in the digital world.
Successful ICOs create a win-win situation. Customers gain access to potentially game-changing ventures, while startups acquire the resources needed to scale their operations.
The crypto community is invested in the brand’s success: the more they grow, the more their followers benefit brand ambassadors and become early adopters of the product or service in question.
Links to cryptocurrency exchanges
Cryptocurrency exchanges act as marketplaces where individuals and businesses can buy, sell and trade cryptocurrencies.
These platforms make money by charging money transaction costs for each transaction executed. As the crypto market continues to grow, so does the volume of transactions, leading to significant revenue for popular exchanges like Coinbase and Binance.
Many companies use affiliate links to these exchanges or accept payments from them. a cryptocurrency casinofor example, accepts deposits from players in Bitcoin or altcoins so they don’t have to touch their fiat balance.
The rise of crypto debit cards is another recent development that is helping bridge the gap between crypto and traditional finance. This allows users to spend their digital money at a crypto-friendly merchant.
Both accepting crypto payments and building affiliate links allow companies to tap into the growing market of crypto users and expand their customer base.
Crypto Rewards
Some companies are not only accepting crypto payments, but are transforming themselves into a crypto paradise full of digital rewards for their loyal customers.
These usually include discounts or exclusive product lines specifically for crypto users: tapping into a fast-growing digital demographic. By catering to this audience, brands can position themselves as innovative and forward-thinking.
Key examples include Starbucks, which will open in 2022 launched its NFT rewards program Odyssey for regular customers. This gave the best supporters access to exclusive tokens that they could trade or sell to other customers, or simply keep for themselves as a treasured memento.
Like ICOs, this type of program encourages repeat customers and fosters a sense of community among crypto-using customers – a win-win for everyone involved!
Create their own digital currency
NFTs are one thing, but some companies are taking it a step further and launching their own cryptocurrencies.
PayPal is a prominent recent example of taking a step into the digital currency market with its own stablecoin launched in 2023. Unlike typical cryptos, stablecoins are pegged to a fiat currencysuch as the US dollar, which allows them to maintain a relatively consistent price.
The big appeal for PayPal is that the more people use their stablecoin, the more transactions they attract to their ecosystem, creating more fees.
If successful, this type of offering will become attractive to smaller brands in the coming years.
The future of crypto and business
The future of cryptocurrency and its impact on businesses has yet to be fully measured. As the technology matures, we will see even more innovative ways for businesses to use crypto to their advantage.
Here are some potential future trends to look out for.
Decentralized Finance (DeFi)
DeFi aims to build a financial system without intermediaries such as banks. This could change traditional financial services and create new opportunities for companies in the crypto space.
Metaverse integration
The metaverse is a virtual reality space where users can interact and transact. This could lead to further integration of cryptocurrencies as a means of payment within these virtual worlds.
Despite the controversy surrounding it, cryptocurrency remains a growing part of the business world. As more and more brands adopt it, you can expect its impact on your daily life to increase every year as we move fully into the digital age.
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