How Web3 Companies Can Strengthen Their Operations with Better Payments

Can web3 companies avoid the tech layoff contagion? 

In the last several weeks, a plethora of stories have been published about tech company layoffs - even as I write this now, the Wall Street Journal just reported Sony has laid off 8% of its staff in the Playstation business unit. The question now for the web3 sector is: will this extend to our most promising companies and startups? We can’t know what every board has in store for their executives, but if you’re a founder or executive in a web3 company, the time is now to find cost-effective solutions - before your shareholders come asking. One of the best changes you can make now, before moving on to larger and more difficult decisions like layoffs or pursuing even more funding, is to find areas of marginal gain. Cost savings can be exponentially powerful and are a marginal gain worth pursuing. 

To this, I can speak with some experience, as marginal gains are something we obsess about at XEROF. What we consider a marginal gain in our line of work - cutting one percent off a transaction fee, or saving half a day in a transaction time - can be a major gain for a company. Especially one that seeks to scale while also keeping costs low. When we talk about reducing friction in payments, we’re talking about these marginal but effective efficiency gains. If your payments can be made on a specific, earlier day instead of days from now, the time value of your funds is preserved. If you can start your treasury department with one person, and keep it one person even as you grow, because that one person has plenty of support from their partners in managing AML/KYC compliance issues, that’s a net gain for your organisation. A better payments and financial process pays dividends, and it is something most founders and investors we work with say is top of their priority list for 2024. And with stablecoins, digital currencies, and plenty of other fintech innovations available today (and interest in these areas continuing to grow - see our suggested reading below), there’s no reason why your payment processes should be painful or costly. If they are - get in touch. There’s a marginal (read: major) gain to be had. 

If you have any questions or want to discuss how XEROF can help your web3 company make significant marginal gains, please don’t hesitate to get in touch.

Best regards,

Marc

Market Moves & News of Note 

What the executive and research teams at XEROF are reading. 

Bloomberg: JP Morgan sees retail traders jump back into crypto markets in February
Retail traders have returned to cryptoasset markets, pushing Bitcoin and Ether to multi-year highs; this is compounded by anticipation of the Bitcoin halving and Ethereum network upgrade, signalling a move towards retail-driven momentum in the digital asset space.

CoinDesk: Bitcoin could hit $150K this year, says Fundstrat's Tom Lee
Despite recent market stagnation, Fundstrat's Tom Lee predicts Bitcoin could reach $150,000 this year, driven by new spot Bitcoin ETFs, the halving, and expected monetary policy easing. Analysts anticipate short-term cooling but emphasise long-term bullishness, suggesting potential pullbacks as strategic entry points amidst ongoing volatility.

‍Bitcoin.com: Grayscale Research identifies Dencun upgrade as 'coming of age' event for Ethereum
Grayscale Research suggests that Ethereum's upcoming upgrade, Dencun, could advance the network's maturity and growth. Dencun aims to solidify Ethereum's position as a leading smart contract platform by addressing issues like high transaction fees and enhancing modularity.

Views from Switzerland

Other reading, insights and resources from XEROF’s research and executive team.

From stablecoins to consumer protection – industry identifies next big payments trend for 2024
In a recent interview with Fintech Times, XEROF CEO Marc Taverner predicts that stablecoins will take the lead in the payment industry this year. Marc forecasts stablecoins, like USDT and USDC, as the primary payment trend of 2024.

Why real estate agencies need cryptoassets
Cryptoassets and blockchain tech in real estate transactions expand global markets for buyers. Agencies must adopt blockchain to stand out in this competitive industry by offering benefits such as accelerated transactions and fractional ownership.

The impact of open source technology on cryptoassets
The revival of open-source development is a testimony to the power of collaboration in digital assets. This ethos promotes inclusivity and security, pushing the evolution of decentralised systems and paving the way for a more equitable financial ecosystem.

AI and blockchain: a synergistic future
AI and blockchain technology enhance security and introduce innovative applications like AI-powered NFTs and gaming. This alliance strengthens blockchain systems against security threats and ensures regulatory compliance.