A decade ago, Y Combinator introduced a crucial principle for new ventures: "Do Things That Don't Scale." But does this advice hold true for crypto startups today?
The core idea is that startups, in their early stages, must:
- Manually recruit users.
- Manually deliver exceptional user experiences.
These efforts are often seen as inefficient or "non-scalable" because larger companies typically avoid them. After three years and nearly 200 startups through AllianceDAO, it's clear that this approach remains highly relevant in the crypto space.
Why "Non-Scalable" Work Matters in Crypto
The crypto ecosystem is still relatively small and tightly-knit. Social distances are short, and communities are highly engaged. This environment creates unique opportunities for founders to connect directly with early users, gather feedback, and build loyalty through high-touch interactions.
While token incentives provide a native scalability mechanism for user acquisition, they cannot replace the foundational work of building genuine relationships and understanding user needs. The most successful crypto startups combine both approaches.
Case Studies: Crypto Founders Doing the "Non-Scalable"
Synthetix: Embracing Short-Term Narratives
Synthetix, a leading derivatives trading protocol, succeeded by aligning with prevailing narratives during the 2020 DeFi summer. Founder Kain Warwick actively engaged with concepts like liquidity mining and staking, even discussing TVL (Total Value Locked) on Discord and Twitter.
He also remained one of the most active members in Synthetix's own Discord, constantly interacting with the community. This hands-on approach helped gather influential supporters and build a strong foundation.
0x and Matcha: Solving the Liquidity Challenge
The 0x team, behind one of the earliest DEX protocols, built their own internal market-making infrastructure when professional market makers were skeptical about DeFi. This solved the cold-start problem and allowed them to deeply understand liquidity provision pain points.
They later spun out this infrastructure as Periscope Trading, demonstrating how manual, initial efforts can evolve into scalable solutions.
Ribbon and Aevo: Direct User Engagement
Julian, co-founder of Ribbon and Aevo, identified the 20 most active individuals in every options protocol Discord. He personally messaged each one, bringing them into the Aevo community.
Even more remarkably, when users struggled with entry or exit liquidity due to limited on-chain options volume, Julian manually located liquidity and posted bids/asks on their order book.
Pendle: Personalized Outreach and Sales
TN, co-founder of Pendle, personally reached out to potential liquidity providers (LPs), scheduling one-on-one meetings to pitch yield opportunities on Pendle. Despite having no sales background, he improved through practice and began converting contacts into users.
He also identified influential figures he wanted to work with, researched their interests and habits, and prepared customized materials he believed they could use publicly.
Tensor: Strategic Partnerships and Whale Targeting
The Tensor team identified Solana NFT whales through on-chain tracking, found their Twitter accounts, and DMed each one. When competing against the larger Magic Eden, they formed an alliance with Hadeswap—building them a new frontend in exchange for a backlink, significantly increasing Tensor's distribution.
Clique: Extreme Persistence for Partnerships
To secure a partnership with Lens Protocol, co-founder Jaden flew to San Francisco without an event ticket after the team canceled a meeting. He waited outside the venue until the event ended, found the right person, and eventually closed the deal through sheer determination.
Caldera: Building Custom Features for Clients
To sign early B2B clients, Caldera's Matt built small, temporary features for them—each requiring 2-5 engineering days. This high-touch, customized support generated significant goodwill, leading to referrals and more deals within the tightly-knit crypto B2B space.
Kravata: Building Trust Through Personal Connection
Felipe, founder of Latin American fiat on-ramp service Kravata, focused on building genuine human relationships. He met clients for coffee and desserts, always paying himself rather than expensing it. Sometimes he flew to meet them in person, discussing shared concerns like regulations and offering business advice without expecting immediate returns.
Key Strategies for "Non-Scalable" Crypto Growth
- Identify and engage your niche community - The crypto space remains small enough that you can potentially talk to everyone in your particular niche.
- Provide exceptional, manual support - Be available to users around the clock, especially in the early days. Solve problems personally before building automated solutions.
- Build custom solutions for early clients - Create temporary features or workarounds to address specific client needs, building goodwill and gathering valuable feedback.
- Attend to narrative trends - While not chasing every trend, be aware of prevailing conversations and concepts that resonate with your target audience.
- Form strategic alliances - Partner with complementary projects to increase distribution and provide mutual value.
- Focus on relationships over transactions - Especially in regions with weaker legal frameworks, personal relationships often matter more than technical features.
The Role of Token Incentives
Token incentives represent crypto's native scalable user acquisition mechanism. From immediate rewards to retroactive airdrops and point systems, these strategies can powerfully drive growth.
However, token incentives cannot replace the foundational work of non-scalable efforts. They complement rather than replace genuine community building and high-touch user support. The most successful projects combine both approaches effectively.
Even protocols where the token is central to the product—such as DePin, stablecoins, some games, and L1s—started through personal connections, friends, investors, and random Twitter interactions.
Frequently Asked Questions
What does "doing things that don't scale" mean for crypto startups?
It means performing manual, high-touch activities that larger companies wouldn't typically do—such as personally onboarding users, providing custom solutions for early clients, and building genuine relationships within niche communities before focusing on scalable growth mechanisms.
How can crypto startups balance token incentives with non-scalable efforts?
Token incentives should complement rather than replace foundational relationship-building. Start with manual efforts to understand user needs and build community loyalty, then layer in token incentives to accelerate growth once product-market fit is established.
What are some examples of non-scalable activities that work well in crypto?
Personalized outreach to potential users, manual liquidity provision, custom feature development for early clients, active Discord and Telegram engagement, attending industry events to build relationships, and providing 24/7 customer support in the early stages.
Why do non-scalable efforts matter in a space dominated by automation?
Crypto may be built on automated protocols, but early adoption still depends on human relationships and trust. Personal connections help overcome initial skepticism and create advocates who will champion your product within their networks.
How long should crypto startups focus on non-scalable activities?
Continue until you've established product-market fit and developed scalable systems that maintain the quality of user experience. The transition should be gradual, ensuring that automation doesn't degrade the user experience that attracted early adopters.
Can non-scalable efforts actually lead to scalable outcomes?
Yes, many of the case studies show how manual efforts—like building custom features for early clients or forming strategic alliances—eventually led to scalable growth patterns, referrals, and organic expansion.
Conclusion: The enduring value of hands-on building
The most successful crypto startups combine the power of token incentives with the personal touch of non-scalable efforts. They understand that technology alone doesn't build communities—people do.
By doing the manual work early—recruiting users individually, providing exceptional support, and building genuine relationships—founders create strong foundations that scalable systems can later expand upon. This approach remains as relevant in crypto today as it was in traditional startups a decade ago.
The crypto ecosystem's unique characteristics—global reach, token-native mechanics, and community-driven growth—create both opportunities and challenges. But at its heart, building successful crypto projects still requires the same fundamental commitment to understanding and serving users that drives all successful startups. 👉 Explore more startup strategies