To: Tezos Foundation:
The success of Tezos hinges in large part on its network effect which in turn is a function of its adoption. Adoption happens when new technology offers better solutions to existing problems than what existing technologies have to offer. But it has to be communicated to a larger audience.
So if XTZ doesn’t want to end up like Sony’s beta VCR, which many claimed to be superior to its competitor, VHS, there has to be a strategy for overcoming the very real first mover advantage that ETH has.
Looking at another competitor of Tezos, Cardano, illustrates how an effective branding strategy can have a positive impact on a blockchain’s network effect. In early 2020, Cardano decided to hire a marketing company to help them gain more brand recognition and greater exposure among developers, users and potential stake pool operators.The strategy paid off. In March of 2020 ADA bottomed at a market cap of $750M, while XTZ was roughly $200M higher. Today, the market cap of ADA is $13.8B, while XTZ is around $2.2B. Cardano outperformed XTZ by a factor of almost 6x since they hired a marketing company. That is despite the fact that Cardano hasn’t even launched smart contracts on the mainnet yet. Tezos is far ahead in terms of development, but sadly lags in terms of adoption/network effect.
There is nothing wrong in looking at the competition and copying what works.Remember,imitation is the sincerest form of flattery.
Please consider producing a report at least quarterly instead of semi-annually. Please also consider hiring an outside marketing company to add leverage to your strategy and perhaps to advise you on what an effective strategy might entail.
Thanks for reading.