Crypto: companies forced to turn their business around

Crypto: companies forced to turn their business around

The Bear Market is forcing some companies to reinvent themselves, or risk disappearing. This is particularly true of Tropee and Multis.

We often tend to see the crypto sector in black and white. There would be companies that succeed and those that fail. But in reality, with the Bear Market, there are above all many companies that are pivoting their business.

In recent months, the number of start-ups that have changed their business model is increasing. Some have left the 'retail' sector behind to focus more on enterprise (a more profitable business), while others have changed their approach altogether. "It's never easy, but it's the only condition for having a future", explains a French investor with a stake in several start-ups.

Tropee is more in the category of companies that have changed their approach. Launched in 2021, the French start-up, which raised €5 million in 2022, began by supporting NFTs collections in creating and retaining their community. But with the market crashing, the company had to quickly reposition itself.

Now Tropee helps businesses, not just those in Web3, manage and engage their community. "This strategy has enabled them to start generating revenue," says a person close to the company.

Multis is another example of these pivots. Regarded in 2021 as one of the nuggets in the field of crypto payments and cash management for businesses, the San Francisco-based start-up, which raised $7 million (€6.5 million) in 2022, has never really found its positioning. "The product is good, but there isn't enough demand for it", says a good industry insider.

In this context, Multis, which has seen the arrival of competitors such as Fipto, cut back sharply in 2023 by parting with a good proportion of its teams, and the company is looking to monetise its services more. One way of doing this would be to work more with traditional companies interested in crypto. According to our information, the company is expected to unveil its new strategy soon.

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