Lessons from Failed Blockchain Marketing Campaigns

Marketing lessons from failed blockchain campaigns offer valuable insights for those involved in this evolving industry. These lessons highlight the importance of understanding and respecting the unique dynamics of building businesses in Web3.

• Misalignment Between Brand and DAO Operations: The Bankless case illustrates the risks when a brand and its associated decentralized autonomous organization (DAO) operate without clear alignment. The BanklessDAO’s fundraising and education initiative, which was proposed without the knowledge of Bankless HQ, led to significant backlash from the community. This situation underscores the importance of ensuring all entities sharing a brand name are in sync, especially regarding major initiatives​​.
• Blockchain marketing efforts often fail due to a mismatch between content and the target audience. Graphite Docs initially had a good reception from blockchain-savvy consumers and failed to land on a pricing strategy that resonated with buyers in the highly competitive enterprise space. By focusing on the wants of crypto enthusiasts, as opposed to enterprise-level users, Graphite Docs made a critical misstep and could not bridge the gap between these two groups effectively. This, ultimately, is what led to their demise.
• Sometimes, more than a good product with a valuable target market is needed. The importance of considering your models when developing a partner ecosystem became evident in the case of we.trade, an IBM-backed network of banks to facilitate international trade using blockchain technology. Despite a successful product deployment, a strong network of founding banks, and very valuable features needed explicitly by the industry, it failed to gain adoption by other banks, largely because its business model was not deemed viable.
• Pepsi’s failed NFT initiative faced criticism for its artwork, which didn’t appeal to the community and was a lazy campaign in every sense of the word. It was critiqued for a lack of promotional efforts and media relations to support the launch, revealing a misconception that their brand popularity in Web2 would automatically translate to success in Web3.
• Chevrolet’s first NFT, which included a ‘free’ 2023 Corvette Z06, failed spectacularly, receiving no bids in two rounds of auction. A primary issue was the high starting bid price (206 ETH, about $240,000 at the time), which was seen as a cash grab, especially given the car’s original price of around $90,000. This misstep reflects a broader misunderstanding by Web2 brands about the nature of the Web3 space and its community’s values

These are all stories exemplifying four crucial elements of a well-executed product launch:

• Ignoring communities: The backlash faced by Bankless due to the misalignment between its DAO and main brand underscores the critical importance of community engagement. Similarly, Pepsi’s unsuccessful NFT initiative highlights the need to align marketing strategies with the unique culture and values of the Web3 community. These cases demonstrate that understanding and respecting community values is a fundamental element of your marketing campaign in Web3.
• Aligning Product Offerings with Market Expectations: Graphite Docs’ struggles with its B2C pricing strategy and we.trade’s inability to attract broader adoption despite a viable product point to a common oversight: the need for alignment between product features, pricing strategies, and market expectations. This alignment is especially crucial in blockchain ventures, where consumer expectations can differ significantly from traditional markets.
• The Importance of Viable Business Models in Blockchain Ventures: The case of we.trade also highlights the importance of a sustainable business model in blockchain ventures. A product’s technological viability does not guarantee success; it must be backed by a business model that appeals to its target market and withstands the industry’s competitive pressures.
• Understanding Web3 Dynamics for Traditional Web2 Entities: The missteps by established Web2 brands like Chevrolet, with its NFT auction flop, reveal a common misunderstanding of Web3 market dynamics. Traditional companies venturing into Web3 must recognize that the values, expectations, and engagement strategies that work in Web2 might not directly translate to success in the decentralized and community-driven world of Web3.

These failures of Bankless, Graphite Docs, we.trade, Pepsi, and Chevrolet provide invaluable lessons for any entity looking to venture into blockchain marketing in Web3. Success in this new era requires a nuanced understanding of community engagement, precise market alignment, viable business models, and an appreciation of the distinct dynamics of the Web3 space. By integrating these lessons, businesses can navigate the complex landscape of Web3 with greater awareness and potential for success.