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Most neobanks will fail and churn their incentives chasing linear utility curves.
The fundamental category error founders are making is treating Regulatory Friction (Location) and Liquidity Preference (Asset Class) as correlated variables.
They assume that high-friction environments equal low-sophistication users, or that friendly environments equal high-adoption mass markets.
Scraping data from social media across regions and user types shows they are generally orthogonal with p95.
If you map fiat vs crypto friendly zones against fiat:crypto liquidity ratio (how much crypto do you hold vs your fiat wealth) we uncover interesting data pointing to the true crypto neobank user archetypes.
The majority of neobanks you see live on the market today are in the top left, chasing linear utility curves (much loved by @SlackHQ founder @stewart) with the same offers and churning incentives with no real moat.
This only appeals to the "Yield Tourist" (Friendly Env / Low Crypto Net Worth).
These users are mostly mercenaries. Their loyalty is rented, not owned. As soon as a competitor offers a higher basis point or two on benefits, they churn.
You are likely optimizing for a linear curve (more features = more value) when your optimal user is on a logarithmic or exponential curve (basic access = 90% value or whales seeking status such as the Atlas / Amex black cohort).
Real crypto neobanks need to go back to basics and solve real problems for crypto natives.
Can i pay my mortgage with my crypto?
Can i pay for my direct debit with crypto?
Can i treat my crypto like money?
These questions are different depending on where you live and your wealth status.
In reality, only two products will win in the long term.
Product A: Optimizes for helping crypto natives in traditionally hostile environments. It is boring, invisible, and bulletproof. It serves the Hostile Quadrant. It solves hard problems.
Product B: Optimizes for Asset Efficiency and status. It is flashy, complex, and status driven. It serves the Friendly Quadrant. It gives people a better experience while allowing them to do more with their crypto.
Most lie in a no-mans land in the middle, not quite as good as a high street neobank like revolut or cashapp, but not able to be used to truly life off grid.
The true crypto neobank dream is half finished.
The company that verticalizes the stack, closes the loop with merchants and crypto holders while allowing them to spend their crypto like money for real life things will win.
@andrewchen 's work on Allele metrics for closing local loops with Uber is relevant here.
Return to crypto.
Give people freedom to live with their crypto.
Own your stack, close the loop, set people free.
Caveat: This is not a dig at current neobanks, we are so far ahead of where we were just a few years ago and this is a positive sum industry, we win together by overturning legacy systems.
Make no mistake, incumbents will shut down your accounts whether they accept stablecoins or not.
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The first-ever SocialFi community for $ZAAR on BTC Runes!
Join the $ZAAR movement and be part of the Token Launch this October!
💾 Get started now: https://t.co/Pu0V8NdCFL
@Ordzaar x @OdinSwap
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Excited to have Chris May, our Head of Global Sales, speaking at #HelloAI 🇸🇬
Don’t miss this opportunity to join the conversation, link in the replies 👇
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🔶@Ordzaar Phase One is now LIVE!🔶
Unbox the secrets of your #ZAAR boxes and join me on the quest to earn XP together for Ordzaar Tokens.
Use my referral code for a huge XP bonus 👇
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AIRDROP ANNOUNCEMENT:
[ZAAR Unboxing]
Airdrop Phase 0, Unboxing ZAAR allocation of tokens!
[Launch of Airdrop Phase 1]
- Questing
- 3-Tier Referral Rewards System
Starts: 6th May, 2pm UTC
https://t.co/SGi4iHMjfr
More information 👇
You won’t want to miss this!
[ZAAR Unboxing]
Those that qualified for Phase 0 Airdrop can Unbox their ZAAR allocation of tokens!
Note: You will not receive it in your wallet until our TGE [Token Generation Event]
[Launch of Airdrop Phase 1]
- Participate in 'Quest Raiding'
Everyone can participate, complete quests, earn XP, convert into Tokens at the completion of the entire airdrop season campaign.
- 3-Tier Referral Rewards System
The 3-Tier referrals chaining XP, code redemption earns points for all involved, up to three levels deep.
[ONLY Ordzaar Pass holders]
Will be given access and ability to generate referral code on day 0.
[Non-pass holders]
Won't be able to generate a code unless they have used someone's referral codes & Subsequently some anti-gaming quests are put in place before they can generate their own codes.
How does it work?
Level 1 - 1200 XP For level 1 referrals, when a non-holder redeems the code, both parties score 1200 XP.
Level 2 - 600 XP At level 2
When your friend generates their own code and a new referral is redeemed, you earn an additional 600 XP.
Level 3 - 300 XP By level 3
Every new redemption from your initial referrals share rewards you with another 300 XP, keeping the rewards rolling.
Congratulations on making it this far!
You've just uncovered one of the key announcements we've been teasing:
Our team at @Ordzaar has been building @OdinSwap a premier Runes Swap.
Swap & Earn Protocol [COMING SOON]
ᚢᛏᛁᚾᛊᚹᛆᛈ ᚠᚢᚱᛊᛏᛁ ᚱᚢᚾᛆᚱ ᚹᛖᛏᛏᚠᛆᚾᚷᚱ
ORDZAAR PASS HOLDERS this is for you:
We are excited to announce an additional bonus allocation of 3.2 million ordzaar tokens distributed equally to all 2,100 Ordzaar Pass holders for the Phase 0 Airdrop!
Note: This is purely just from Phase 0 Airdrop, not including other allocations that we have yet to unveil. MORE INCOMING!
- This allocation is equivalent to revealing the maximum tier of Zaar Boxes (Mythical).
- The tokens allocation are tied to individual Ordzaar Passes, selling the pass will result in loss of the tokens.
- Tokens will only be redeemable during our TGE [Token Generation Event]
Join our Discord to find out more about Ordzaar Pass Overview & Holder Benefits!
Official Discord: https://t.co/WKBCknLlB7