Failure Analysis
One of the core strategic failures of 37Coins was its dependency on SMS when mobile internet is rapidly becoming ubiquitous, even in emerging markets....
37Coins \USA
37Coins was a pioneering Bitcoin wallet service targeting emerging markets like the Philippines and Singapore with an innovative SMS-based transaction model. Its core problem leaned towards bridging the digital divide in cryptocurrency access by catering to the unbanked and underbanked populations who had no reliable internet connection but had access to basic mobile phones. By leveraging SMS gateways, 37Coins introduced an inclusive financial solution that enabled these communities to participate in the nascent cryptocurrency ecosystem, promising financial inclusion in areas traditionally underserved by banking infrastructure.
Discover the reason behind the shutdown and the market before & today
Market Analysis
Today, the industry has shifted towards internet-based mobile financial solutions with a strong preference for stablecoins for low-fee transactions, reducing SMS gateway dependence significantly....
Startup Learnings
Leverage SMS gateways like Twilio for global communications. Implement flexible blockchain APIs to reduce complexity. Adapt quickly to evolving technology landscapes to stay relevant....
Market Potential
The market potential for cryptocurrency solutions in underbanked regions remains moderate. While the Total Addressable Market (TAM) for mobile financial solutions is large, Bitcoin's...
Difficulty
Building a secure, SMS-based transaction system in the early 2010s was substantially more challenging than it would be today. Custom infrastructure was needed to...
Scalability
The scalability of 37Coins was severely limited by the reliance on SMS, which, though accessible, restricted the speed, volume, and cost-effectiveness of transactions compared...
Rebuild & monetization strategy: Resurrect the company
Execution Plan
Phase 2
Implement blockchain APIs for stablecoin transactions, utilizing Chainlink.
Phase 3
Integrate AI-driven fraud detection systems with Anthropic.
Phase 4
Deploy data management and caching solutions via Supabase.
Phase 5
Run pilot tests in targeted emerging markets to iterate on user feedback.
Monetization Strategy
Monetization strategies would focus on microtransaction fees, subscription models for premium features, and partnerships with local financial institutions to offer co-branded services. Additionally, offering value-added services like microloans, leveraging blockchain's security and transparency, could provide additional revenue streams.
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