Why tokens solve the network effect problem Web3 founders face

Executive overview

Consumer internet apps need critical mass before they deliver value — the chicken-and-egg problem. Tokens reframe this: early users get ownership upside, so joining before the crowd makes financial sense.

Tokens transform the network effect cold-start problem from a liability into a competitive advantage.

Sisun Lee left a pandemic-hit beverage startup, spent a year exploring, and found Web3 through a community of ambitious builders. He co-founded Ramper to abstract away wallet complexity so any app can onboard mainstream users without exposing them to crypto UX.

Why Web3 caught his attention

• Builders were shipping without a fixed end goal — a creative freedom rare in traditional tech
• Crypto communities formed at a speed never seen in conventional software
• Tokens let companies replicate Uber's driver-incentive playbook without legal friction
• Ownership economy flips the value curve: early adopters gain, not just late majority

How tokens change the network effect graph

• Standard graph: value per user rises only after a critical mass of users exists
• Tokens add a second curve: financial upside for being first, giving users a reason to stay
• The cold-start problem becomes an onboarding incentive rather than a barrier
• Consumer apps have no equivalent lever — they rely on referrals, retention hacks, and niche seeding

What Ramper is building

• Ramper is a wallet-as-infrastructure layer for decentralised apps
• Wallet setup today requires downloading Metamask, installing a browser extension, and managing keys — most users drop off
• Ramper handles key management invisibly; users experience a standard mobile app
• Goal: a dApp using Ramper is indistinguishable from a non-blockchain app

Founding decisions and team

• Co-founders found online-first — normal in Web3, unusual elsewhere
• Mission set early: make Web3 accessible to everyone
• Iteration on product expected; speed of learning from developer feedback is the key variable
• First version will receive critical feedback; the question is how fast the team can push fixes

His risk philosophy

• Risk of failure is roughly equal whether building a sandwich shop or blockchain infrastructure
• Effort required is also equal — so optimise for upside
• Ambitious goals attract ambitious people; mission is a recruiting tool
• Deliberate choice: if it fails, it should at least have been the most ambitious attempt possible
• Entrepreneurship is resilience and iteration, not prior knowledge of how to succeed