It’s time blockchain marketing grew up
Last week’s 25% bitcoin price surge harked back to November 2017, when the market traced a similarly astonishing trajectory. 18 months on from the great bull market, the nascent blockchain space is unarguably older — but is it wiser?
Certainly some of the marketing tactics employed by crypto projects back then makes for neither glowing reminiscence nor good example.
The many marketing mistakes of blockchain
Who dares not to cringe when reminded of John McAfee’s “Coin of the Day”, in which each tweet lionised a “favourite” crypto token (that McAfee may have been paid to promote). In the case of his tweet about Burstcoin, this resulted in a near-instant price eruption of 350% — followed by a precipitous fall of a similar magnitude.
While McAfee’s near-million-strong follower-count enticed several projects in the moment, the cumulative effect of “Coin of the Day” was a loss of credibility for specific projects and the industry as a whole. Nor was this discredited mechanic a rare eddy in a millpond of competence: examples of shoddy practice are myriad. So, as crypto embraces the exponential once more, how can its marketers play their part in avoiding the dubious promotional practices of the past?
ICOs defined the last bull market, with their necessity to rapidly attract retail investment. Creating short-term community buzz became the default strategy. It was not bereft of issues.
Fake followers
In the race to build social-media momentum, some projects purchased fake followers. The social metrics of Airfox — an ICO that refunded investors after SEC intervention — demonstrate rapid spikes in Twitter followers followed by similar drops a few weeks later: the hallmarks of bulk follower purchases.
Using fake followers to boost community numbers impacts trust and engagement. Yet it persists. A 2019 analysis alleged that Twitter sentiment regarding Ripple’s XRP token was controlled by a “bot army” of thousands of simulated accounts. Another has estimated that in the case of Justin Sun, founder of TRON, a sizeable proportion of recent followers were fake.
Airdrops and bounty campaigns
Airdrops and bounty campaigns were another infectious marketing malady. In the case of the former, providing free tokens to holders of another token was a fast way to achieve interest — until the SEC’s ruling on Tomahawk Coin made it clear that the Howey test applied even to freebies: perhaps saving us all from a horde of derivative projects.
While Bounty campaigns have their uses (such as crowd-sourcing code-bugs) rewarding users for posting about a project is problematic. One side-effect is the blockchain project Telegram “ghost” group: many thousands of members but just a handful of active users. Few are fooled.
Back then, influencers could name their price to promote an ICO. Many failed to disclose their interest. The apogee: Paris Hilton and Floyd Mayweather facing SEC sanction. Such practices have no place in other sectors; nor should they be allowed here again. Far better to be transparent: long-term users reward those they trust.
The new bull market
Instead of the ICO, we now have STOs and IEOs — not to mention many funded projects with MVPs seeking to accelerate roadmap progression, drive user adoption and build engaged communities. Marketing must evolve to suit.
Crypto influencers continue to provide access to a global audience. Their current properties are a far cry from the low-fi YouTube “Ask Me Anythings” of yore. Podcasts and newsletters such as Peter McCormack’s What Bitcoin Did and Anthony Pompliano’s Off The Chain are taking blockchain to new audiences.
Blockchain networking events and conferences are also achieving new levels of quality and quantity. They allow existing projects to attract mainstream interest and the current choice is ideal for negotiating valuable sponsorships.
Opportunities
Digital advertising has been historically stymied by Facebook and Google’s crypto bans. As these barriers lift, we have a new channel to acquire customers. The stage is set for targeted ads to drive far greater adoption for blockchain companies.
As social sentiment becomes more savvy, credibility has never been more important. Community management remains a significant but necessary commitment. Active social-media channel maintenance, regular posts and fast responses to inbound enquiries are not optional. Failing to maintain an active and accurate presence is reputation-imperiling.
The current market is notable for its levels of competition. Each niche is hotly fought over by a number of valid projects. Winning the user adoption race thus means overachieving your fair share of visitors from search engines. Yet relatively few blockchain projects prioritise SEO. The paucity of search-first companies perfectly encapsulates the sector’s ongoing marketing adolescence.
The credibility imperative
If, and when, John McAfee’s luck runs out, few will miss the role he and others played in blockchain’s promotional past. Compelling leaders are emerging. Take Binance’s Changpeng “C.Z” Zhao: while he may occasionally misstep (such as his recent suggestion to reorder bitcoin to reverse a hack), having a communications-first CEO remains a powerful asset for any ambitious crypto brand.
Overall, we must forsake the facile marketing tactics of old and build trustworthy global brands with broader appeal. As institutions with eight-figure marketing pockets assimilate our space, hiding places will be severely rationed. Blockchain’s promotional agendas have always benefited from agility and experimentation. Now they must develop a new marketing virtue: sustained credibility.
Joe Rudkin, Marketing Director at Block Influence, in conversation with James Bowater.
[A version of this article originally appeared in the City AM newspaper’s Crypto AM section on Tuesday 21st May 2019. The original PDF can be downloaded here.]
Want to read more?
- Our guide to the 10 best places to buy bitcoin and crypto
- Read our how-to guide on doing your own ICO marketing
- Read how to choose the right London blockchain marketing agency
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