• Crypto has a branding problem, which is causing it to fail to live up to the hype.
• FTX spent millions on marketing and advertising, but failed to create a lasting bond with customers.
• For crypto businesses to be successful, they need to focus on creating meaningful connections with their target market.
Crypto’s Branding Problem
The crypto industry is in a new phase of its notorious market cycles, creating excitement for rising investment and deeper liquidity. However, in order for the market to come back stronger, lessons must be learned from what happened before. The collapses of 2022 continue to be analyzed by TV stations, newspapers, magazines, blogs and social media — one key lesson being that crypto has a branding problem.
FTX’s Failed Marketing Strategy
FTX spent 15% of its revenue on marketing and advertising — including $375 million on multi-year sport sponsoring contracts — hoping it would raise awareness and name recognition among global populations. But this strategy only works if people understand what FTX stands for; otherwise it fails to create any meaningful connection or lasting bond with potential customers.
The Value of Meaningful Connections
For crypto businesses to be successful in the long term they need to focus their efforts on creating meaningful connections with their target markets instead of simply spending money without any tangible return. A business can make a lot of money in a bull market but will see little value from expensive marketing campaigns if no one buys their product or services at the end of the day.
Lessons Learned
FTX’s story provides an important lesson — when it comes to spending money on marketing and advertising during times of growth, brands should look beyond awareness and name recognition alone and focus more on developing real relationships that will last even when the market turns bearish again.
Conclusion
In conclusion, while there are some advantages in anticipating mass-market adoption through pre-emptive global brand awareness campaigns, crypto businesses must realize that such investments don’t guarantee customer loyalty or long-term success unless they are able create meaningful connections with their target audience first.