In the excitement and debate about the development direction of cryptocurrencies and whether they are legal, sustainable, and prudent investment, the interest of marketers is obscured: Bitcoin (Bitcoin), ether (Ethereum), Cardano’s Have, Litecoin (LTC), Ripple, Dogecoin (dog) Wait, the encryption brand?
If so, how are these brands created and what role do they play in the adoption of each token? Or, for that matter, how can brands jointly promote (or weaken) the legitimacy of cryptocurrencies when seeking to increase mainstream acceptance/use?
related: Decentralization and Centralization: Where is the future?Expert answers
To start answering this question, consider David Ogilvy is a British advertising tycoon, known as the “father of advertising”-the definition of a brand: “the intangible sum of product attributes.” These usually include identity, voice, empathy, value proposition, and consistency in fulfilling promises. Ultimately, attributes such as these will surround the core of the product/service like atomic particles to create trust, preference, and loyalty (or lack of trust).
One might argue that fiat currencies are a brand because their issuing countries strive to create value and confidence for them. However, there is almost no competition in the home country. The distribution of commodity identities (US dollar, British pound, Euro, RMB, etc.), the government (“brand” owner) or other entities have not really tried to change the way the currency is perceived or even used. For this.
Looking at other examples in the financial sector, stocks are a way to own a brand that issues stocks. Mutual funds also assume the halo of the brands that manage them-although in some cases funds such as Fidelity’s Magellan Fund and Vanguard’s Wellesley Income Fund have become well-known brands. You can also think of the fund as a basket of brands.
In addition, commodities such as gold, silver and copper are also commodities. This brings us to cryptocurrency.
Consider the following:
- Bitcoin has many unique monetary attributes, such as: 1) The heroic epic narrative, which reached the now-famous 2008 in the form of Satoshi Nakamoto’s pursuit of a decentralized currency alias white paper2) An identifiable and evolving identity, and its perception as the founder of digital currency; 3) The “first mover” advantage that all other brands (cryptocurrencies) are forced to compare or contrast.
- It can be said that there are two main players or well-known brands-Bitcoin and Ethereum-and more and more “challenger brands” in the form of altcoins.
- The challenger brands each have their own selling propositions, and—such as Avalanche, Sushi, and Chiliz—a way to help investors/consumers remember them.
- The whirlpool surrounding Dogecoin and other so-called memecoins-crypto dictionaries description As a “joke that becomes a cryptocurrency”-illustrates how popular culture (and marketing) affects the market. Older people may cringe, but especially for the younger generation of investors, there is nothing unusual about positioning Dogecoin and others as consumer currencies.
- Finally, and perhaps most importantly, the cryptocurrency market is growing rapidly, in which technology/platforms compete not only for financial participation, but also for social currencies—that is, sharing voices on social media within and outside the cryptocurrency community.
For all these facts, there are still some interesting questions: first, if decentralization is the core of the concept of cryptocurrency, then who is controlling and nurturing each brand? If trust is the core principle of brand health, how does trustless technology adapt?
related: Bitcoin’s evolving narrative makes it anti-fragile
Cryptocurrency is the first true user-generated brand
Unlike user-generated content (UGC)-it is solicited by a marketing organization to provide customers with voice, authentic views and active participation-user-generated brand (UGB) content is largely unsolicited and uncontrolled . Just like yeast, let’s start, it will grow on its own. (Given the prevalence of Sourdough in the global COVID-19 pandemic, this seems to be an appropriate analogy.)
Due to the lack of a central owner or identity equivalent to a brand manager or chief marketing officer, these brands are created and nurtured by project founders, user communities, investors, miners, etc. They are on parties, forums, chat rooms, and subreddit. In fact, brand health may be related to the active level of dialogue on such channels.
Brands are shaped by a growing community of influencers, including crypto heroes such as Andre Krone with Vitalik Butrin, Technology pioneers like Mark Anderson With Elon Musk, financial stars like Cathy Wood and Jamie Dimon, and pop voices like this Shark tankMr. Wonderful (Kevin O’Leary) and The Mooch (Anthony Scaramucci). All this shows that the trajectories of these UGBs and how they will be consumed by individual investors, institutional investors, and the media are largely unpredictable. Or is it?
related: Expert answer: How does Elon Musk affect the crypto space?
Build an encrypted brand
Many (if not most) crypto projects have a foundation or decentralized autonomous organization (DAO). Think about Bitcoin.org, the Ethereum Foundation, the Cardano Foundation, and other open source resources. There are too many resources. These foundations publish white papers as de facto advertisements and raise funds through crowdfunding using initial coin products as their currency. And, yes, advertising agencies are hired and use other resources to shape their brands-although the people who actually approve the idea may vary widely, and may be the user community itself or the people who hold governance tokens.
Ultimately, from the perspective of traditional brand management, when these projects seed and guide their UGB, only so much control exists. With this active, committed, and highly enthusiastic community, they can:
- Take advantage of the herd mentality bias that drives most categories. This is heuristic and describes the tendency of investors to join the Conga series-to follow other investors more based on emotion (fear of missing out) rather than rational considerations, and helps most of the space quickly increase. Arm yourself with influential people and let the game begin.
- Stoke content momentum. User-generated content is a bit like a street performance: let a few people yell, and more people will watch what is happening, which causes the audience to swell. Therefore, high-quality content will attract the crowd and leave more high-quality content. The key word here is “quality”.
- Make education fun. Let’s face it: most people don’t want to spend time deciphering how Merkle trees and nonces work. They want to understand what this new asset class is, why it needs to be considered and how it will help them achieve their personal goals. Therefore, there needs to be a strategic call to make the content easy to consume.
Going back to the second question, the most important task of any foundation and its follower community within its UGB may be to build trust among those who do not trust. In other words, according to its technology/project review method, security, true independence, and-perhaps most importantly-how it quickly answers this question to distinguish and differentiate currencies: What is it for?
Of course, the last point is not unique to cryptocurrencies and their UGB. Institutions that must communicate their choice to customers, companies that sell exchange-traded products, exchanges themselves, wallet applications, etc. are growing rapidly in this category, but are still a huge one for everyone except a few The mystery will ultimately differentiate yourself into the mainstream by doing what other great brands have done: clear, simple and fulfilling promises.
In other words, in order to eliminate the misunderstanding of the vast majority of non-crypto nerds, that all cryptocurrencies are designed to replicate fiat currencies to purchase daily goods and services, but to clarify their very specific purpose.
Where will the cryptocurrency go? It is worth paying attention to.Ark Investment recently description Bitcoin is “the purest form of currency ever.” In a strange way, it may also become the purest form of marketing ever.
This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.
The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Rich Feldman Currently responsible for the marketing of Finario, which is a SaaS provider for corporate capital planning. Prior to this, he was the chief marketing officer of PrimaHealth Credit and the institutional owner/partner and chief strategy officer of Doner CX (part of the MDC partner network), where he led CRM, analytics, digital media and others Business in the field of strategy. Rich taught strategy in Syracuse University’s New York University Masters of Marketing program and was an adjunct professor at Western Connecticut University-he was a member of the advisory board of the Ansel School of Business.He is also the author of this book Deconstruct creative strategy.