From: thepipeline_xyz
Onboarding new users to the cryptocurrency space is a critical and evolving challenge, with user experience (UX) and security being paramount. Phantom, a widely used crypto application, is aiming to streamline this process, particularly with its day-one support for Monad’s testnet [00:00:08].
Phantom’s Approach to User Onboarding
Phantom has had access to the private Monad testnet for several weeks, preparing for launch day to provide a custom-built experience for the Monad community [00:00:22]. The integration aims for a fast, super clean experience without the need for network switching [00:01:57].
Phantom emerged as a leading product for onboarding new users to crypto, akin to its impact on Solana in 2021 where it was a “game changer” and often users’ first wallet [00:03:14]. It set a standard for smooth and thoughtful UX [00:03:30]. Key aspects of its early UX design included managing multiple wallets cleanly [00:03:38], hiding spam tokens and NFTs [00:03:43], and adapting to environments with much cheaper gas fees, which can lead to new types of attacks [00:04:14].
The Monad team views Phantom’s day-one integration as “quite special” [00:03:04] because it enables a smooth experience for many users [00:05:01]. The Monad chain’s speed and low gas fees, reminiscent of early Solana, align well with Phantom’s UX focus [00:05:11].
Challenges in User Onboarding and Retention
A significant challenge in crypto onboarding is the “last mile” experience [00:08:00]. New users face a steep learning curve, needing to understand concepts like seed phrases and private keys, and how to back them up securely [00:08:30]. This difficulty can make or break the onboarding process for non-crypto-native individuals [00:08:20].
Beyond initial onboarding, user retention is crucial [00:09:44]. Wallets must not only onboard users but also keep them engaged and retain them within the ecosystem [00:09:33]. This involves:
- Protecting users and ensuring their safety [00:09:50].
- Preventing unintended actions [00:09:53].
- Providing general education and customer support [00:10:07].
The launch of a new environment like Monad presents a huge opportunity to onboard many new users [00:11:05]. The goal is to provide enough value to users so they keep returning day after day [00:11:47], ensuring their journey on Monad is special [00:12:25].
Innovations in User Onboarding
Phantom addresses the challenge of onboarding new users by continually innovating. The team made a strategic bet on Solana early on, which fostered a “paranoid survive” mentality, driving continuous improvement and shipping new features [00:16:17]. This includes adapting quickly to market trends, such as the rise of meme coins [00:13:21], and developing features like a trending page for tokens [00:20:34].
Phantom’s approach prioritizes net-new, mainstream users, packaging the best of the ecosystem in a palatable way for those accustomed to platforms like Robinhood [00:22:50].
Key innovations include:
- Social Login: New users can onboard using Google or Apple ID with a four-digit PIN, simplifying the process and reducing friction associated with seed phrases [00:09:00]. This has led to a tremendous uptick in its use [00:25:50].
- User-Driven Discovery: The trending token page is based on aggregate user activity, helping users discover what others are engaging with, especially in fast-moving metas like meme coins [00:23:46].
- Mobile-First Experience: Recognizing that Ethereum L1 and L2s can be cumbersome on mobile, platforms like Monad aim for a fast, snappy experience essential for mobile users [00:26:13].
The Future of User Experience in Crypto
The future of crypto UX is seen as increasingly mobile-oriented and mobile-first, driven by fast and cheap infrastructure [00:32:53]. While a multi-chain world is anticipated, it will likely consist of only a handful of significant ecosystems [00:33:14]. The concept of a “chain-specific wallet” is expected to fade, similar to how there are no chain-specific centralized exchanges [00:33:37].
Wallets will need to abstract the complexities of crypto without losing its core characteristics (like seed phrases and self-custody), while also integrating features like easy cash in/out and social functionalities (e.g., usernames for finding friends) [00:34:17]. The goal is to build a “crypto unique concept of a social network” rather than just a Web2 clone [00:35:22].
A major unsolved problem is “discovery” in crypto, akin to a Web3 Google [00:52:00]. Google is uninformative for crypto-specific searches due to SEO, ads, and lack of wallet awareness [00:52:27]. Bringing together fragmented discovery methods (DEX screeners, CoinMarketCap, Telegram groups) into one platform like Phantom could significantly aid user acquisition and onboarding [00:54:19].
Advice for New Users
For those looking to enter or learn more about the crypto space, several pieces of advice for crypto founders and users are offered:
- Download Phantom: It provides an easy starting point with social login and a “Discover” tab featuring trending topics and a “Learn Center,” including articles like “Monad 101” [00:46:55].
- Be an Explorer: Crypto rewards those who tinker and keep an open mind, exploring the fringes of the technology [00:48:03].
- Buy First, Research Later: For major assets like Bitcoin, Ethereum, or Solana, having “skin in the game” after a purchase can motivate more effective learning [00:50:00]. (Note: This advice may need adjustment for meme coins, where some research is recommended first [00:50:38].)
- Join a Community: Engaging with a group of like-minded individuals makes the journey less frustrating and helps with motivation and navigating highs and lows [00:55:17]. This aligns with the strategic approach to engaging with a crypto community.
- Just Do Things: For those on the sidelines or looking to break into the industry, pick a niche, develop a skill, and start building or creating content. Putting your name behind your work can be very impactful [00:58:18].
- Take More Risks: Humans often over-index on potential downside. In general, taking calculated risks and putting oneself out there is encouraged [00:59:46], which also relates to navigating risk and security in crypto investments.
- Focus on Metrics and Consistency: Measure progress with clear metrics (KPIs) to maintain motivation and drive. This applies to individuals and companies alike [01:00:26]. This also ties into the importance of social media marketing in crypto.