Liquidity hacking: How to build a two-sided marketplace

What is liquidity hacking?

In short, liquidity hacking is the strategy that successful marketplace businesses employ to reduce the challenges associated with low transaction volumes. It often requires narrowing the scope drastically of the offering until sufficient scale allows you to expand to achieve a broader marketplace.

This type of hacking is completely necessary in my opinion. The thing with marketplace businesses is that they work great at scale. Once you have hundreds of thousands of users on the supply side and the demand side, then everything works great. The challenge is almost always – how do you get there?

Provide value to one side

  1. Offer portfolios – Many different people like to showcase their…

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