WhoBuilt

How to Survive the Crypto Boom & Bust Cycle

Apr 2, 2024· 10 min· 15K views·Watch on YouTube

Speaker

Chandan Lodha, co-founder of CoinTracker, talks with Y Combinator about building through crypto market cycles and adapting the company to changing user needs.

A product born from a founder problem

Lodha says CoinTracker aims to help people use crypto with more confidence through portfolio tracking and tax software. In 2017, he and co-founder Jon were frustrated with traditional financial infrastructure and built a tool to track their own crypto assets. They later added support for crypto taxes.

Surviving crypto winter

Lodha describes crypto’s sharp swings between periods of rapid growth and prolonged downturns. In 2020, CoinTracker was six months from running out of money. He credits a long-term focus on the company’s mission, a strong co-founder relationship, and candid conversations with the team for helping them through.

Recognizing the product had fallen behind

CoinTracker grew 14 times during the prior bull run, but customers later said the product was not keeping pace with newer crypto activity. The team had fallen behind on advanced DeFi use cases such as liquidity pools and Uniswap. They paused other work for nine months to focus on product quality.

Making user feedback part of daily work

For CoinTracker 2, the team made user contact a responsibility across support, design, marketing, product, and engineering. Lodha says he speaks with users daily and looks for feedback on Reddit and Warpcast. The company also changed its principle to “Think long term, ship today,” which encouraged experimentation and faster execution.

Using downturns to prepare for growth

Lodha says CoinTracker launched version 2.0 in January after a year of product quality work. His advice is to stay humble during a boom and keep believing through a downturn. He sees crypto winters as a chance to strengthen a company before the next wave of adoption.

Takeaways

  • Check whether your product still handles the use cases customers rely on today.
  • Talk with users regularly across every team, not only in product research.
  • When growth slows, focus company effort on the most important product gaps.
  • Share difficult company realities honestly with employees.
  • Treat downturns as time to improve the business for the next growth cycle.

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