No Place for Lone Wolves. The Importance of Partnerships in Crypto
Amazon, Facebook, and Tesla are just a few of the big companies with their free-spirited CEOs. This is often the first image that comes to mind when people think about business. However, the truth is quite the opposite. Business is frequently a team sport, so any company's success is rooted in trust and respect between the partners. "It's the same in the world of crypto," said Leah Li, head of marketing at Binance US.
GoPro and Red Bull have teamed up, as some of you may know. If you're looking for two lifestyle businesses, these two seem like a natural fit. We use the term "lifestyle" to refer to an adventurous, daring, and often extreme one.
Another example of a successful partnership between two fast-growing firms is Spotify and Uber, which have teamed together to give stereo control for Uber passengers. In addition to Starbucks and Barnes & Noble, another fascinating pairing is the latter's ability to stay afloat despite the loss of brick and store consumers.
A company's ability to expand is directly related to the number of partnerships it has. In order to get ahead of their rivals, merchants and dealers have traditionally made strategic alliances. Today, the trend is very much alive.
Partnerships: the Crest of a Wave
In 2022, 82% of B2B business owners expect to expand their network of business partners. Nearly 70% of channel program costs are expected to increase in the foreseeable future.
Intriguingly, three times as many fast-growing companies rely on marketing alliances as slow-growing ones. Finally, 74% of US customers confess to browsing two to three non-retail websites before making a purchase, while 16% admit to visiting more than four.
A partnership can take a variety of forms, from company owners working together to invest in a project to companies exchanging technical information and ideas. Whatever a company performs, the most important thing is to find a partnership arrangement that both sides can profit from.
The foundation of any partnership agreement is built on mutual trust and respect. It is essential to be able to trust your partner's judgment, temperament, vision and expertise if you are a deal-maker, and the other way around. Keep an eye out for each other's strengths and weaknesses.
Crypto Lives on Partnerships
The importance of strategic alliances may be clearly seen. The same is true in the cryptocurrency realm. Working with other crypto companies has a lot of advantages, including enhancing the services and opening up a broader range of markets and prospective customers throughout the world. All of these things contribute to a more successful firm and a more compelling offering for its clients.
“The opportunity for Binance US is that we license a larger Binance brand and their technology so we have a very strong infrastructure. And on top of that infrastructure, we have the flexibility to partner with a lot of different types of companies. We're looking at different types of players but we're looking at the very early-stage startups as well,” said Leah Li, head of marketing at Binance US.
She noted that startups tend to be small and nimble, and they tend to focus on the most pressing issues that touch a large number of individuals in the ecosystem. So Binance is looking at a wide range of potential partners.
Interesting fact: the concept of strategic cooperation made its way to the crypto industry from more traditional corporate sectors. Commercial relationships between two firms with a "win-win" philosophy are referred to as "win-win" relationships. As a result, they form a mutually advantageous collaboration.
“I feel like partnerships and traditional finance are moving into crypto and trying to incorporate it into their system all the way to investing in early-stage projects and creating their own tokens. I feel like everybody is at a different stage of understanding how they can get involved,” said Leah Li.
But Who Needs Partnerships Today?
Each partnership has its own unique set of motivations for forming. A new product or service may be developed as a result of a partnership between two or more firms. Others are looking to broaden their consumer base or establish a new market area. Research and publication of new market data can also be done together by the partners. Every industry, company, and aim is unique.
Five essential reasons for strategic cooperation exist independent of the specific goals: to minimize risks, cut costs, stimulate innovation, outperform rivals and cope with regulatory impediments. Strategic partnerships, on the other hand, are mostly used to attract new consumers by raising liquidity, providing additional trading pairings, or simplifying the listing of tokens.
Partnerships are also critical for the broader blockchain sector; the more individuals who know about and utilize cryptocurrency, the more quickly it will be adopted.