From: thepipeline_xyz
The concept of “consumer crypto” is currently a widely discussed topic, referring to consumer-facing products built within the cryptocurrency space [00:00:21]. One example of a team operating on the cutting edge of this sector is Pulse, which is developing a consumer-facing product that integrates both software and hardware [00:00:30].
Pulse: A Case Study in Consumer Crypto
Pulse is a lifestyle wearable designed to enhance productivity by focusing on overall health and well-being [00:03:57]. The inspiration behind Pulse stems from the founder’s personal experience of neglecting health while building startups, and realizing the importance of taking care of one’s body to maintain productivity and an “edge” in work and personal life [00:01:51], [00:03:35]. Unlike traditional health wearables, Pulse aims to make users better “operators, builders, and humans” by leveraging data across various life aspects, not just health [00:04:05].
The device collects data through sensors like accelerometers, temperature sensors, and heart rate monitors to estimate user activities such as lifting weights, running, boxing, yoga, and Pilates [00:30:15]. It also tracks general lifestyle data, like prolonged sitting, to encourage more energetic behavior and combat procrastination [00:31:53].
The Web3 Advantage in Consumer Wearables
Pulse differentiates itself from traditional wearables by incorporating Web3 components, offering several unique advantages:
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Data Ownership and Rewards Users are rewarded for the data they generate, unlike traditional platforms where data is sold without compensation [00:05:30]. This means users can be notified of opportunities to license their data to third parties, such as universities conducting clinical studies, and decide whether to participate [00:06:22], [00:06:44]. The use of crypto rails serves as a transparency mechanism for data brokerage [00:06:17]. This approach makes it a “live-to-earn” model rather than purely “health-to-earn,” as even non-exercising users’ data is valuable [00:33:28]. The long-term vision includes incentivizing users to contribute additional data like blood work, DNA, and electronic health records to build a comprehensive “Health digital twin” [00:33:50].
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Transparency Crypto rails ensure transparency regarding how long data is shared, what it’s used for, and with whom [00:06:54].
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Data Security Pulse aims to store as much data as possible encrypted on-chain using technologies like Multi-Party Computation (MPC) powered encryption and Fully Homomorphic Encryption (FHE) [00:36:01], [00:36:32]. This ensures that only the user can decrypt their data, preventing hacks and data leaks that have affected traditional platforms like 23andMe and Change Healthcare [00:36:11], [00:37:23].
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Community Building Crypto is considered highly effective for forming culture and communities through token ownership and shared values [00:21:23], [00:21:53]. This offers a significant advantage over traditional wearables that lack this community aspect [00:22:05]. The ability to “bootstrapped a user base” and gather feedback from loyalists is a “superpower” in blockchain development, reducing the need to pay for product testing common in traditional startups [00:37:53].
Challenges and Strategies for Growth
Developing a hardware-software integrated product in crypto, like Pulse, presents unique challenges:
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Hardware Complexity Building hardware is described as extremely difficult and time-consuming, requiring extensive work on finding suppliers, testing capabilities, designing, logistics, fulfillment, and branding [00:08:05], [00:08:45]. Unlike software, a single mistake in hardware can require a complete restart [00:08:21]. Despite the difficulty, developing proprietary hardware creates a “moat,” preventing displacement by competitors like Whoop or Oura Ring, and allows for direct integration of crypto wallets via an NFC chip for features like “proof of pulse” (one wallet equals one human) [00:10:34]. It also provides an API and SDK for other teams to build software on top of the wearable, treating it as infrastructure [00:11:14].
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User Acquisition and Growth Strategy Pulse’s initial growth strategy targets a “hardcore fan base” of 0-10,000 users primarily within the crypto community [00:15:16]. This allows for refinement of the app, positioning, and branding. The next phase involves expanding to the “Normy Market” (mainstream retail), which will require shifting marketing to platforms like TikTok, YouTube, and Instagram, using language tailored to diverse user segments (e.g., busy moms, students, high performers) [00:15:58], [00:16:17]. Once a healthy distribution level is reached (e.g., 100,000 daily active users), the focus will shift to data acquisition deals with third parties interested in licensing user data [00:17:19].
Building on Monad
Pulse chose to build on Monad due to its focus on speed and user experience, which is crucial for a consumer-facing product [00:41:18]. The Monad team’s confidence, the chain’s throughput, and low latency were key factors [00:39:47], [00:41:20]. Additionally, the Monad community is already deeply engaged with the value proposition of consumer crypto and health/wellness, making it a natural fit for Pulse’s growth and community building efforts [00:41:55], [00:46:41].