The Best Ways To (Ethically) Market Crypto Companies
The large sign was abruptly removed from the Miami Heat stadium.
As the letters were demolished, FTX Arena became no more. The NBA team recently announced the ending of their relationship with the cryptocurrency company after going bankrupt earlier this month. Only last year was the arena renamed in a massive 19-year $135 million deal.
It wasn’t the only notable sports deal FTX made recently.
MLB umpires wore the logo on their uniforms. Sports games were interrupted by commercials, starring athletes promoting the fifth-largest cryptocurrency exchange in the world, as per Forbes.
A lot of chicanery went into FTX’s swift downfall. Run by 30-year-old Sam Bankman-Fried, the company ran into trouble when Binance — the largest cryptocurrency exchange in the world — announced it was selling all of its FTT tokens — a large amount of which was held by Bankman-Fried’s hedge fund, despite the two businesses being separate.
Others followed suit, resulting in $6 billion in requested withdrawals over three days. The company promptly filed for bankruptcy. The lack of transparency has caused concern that has rapidly spread amongst the various crypto ecosystems. We recently wrote about crypto currencies and the industry's constantly evolving market, but much has changed in the blockchain since then.
With the amount of unscrupulous behaviors, including Bankman-Fried allegedly transferring millions in backdoor dealings through the hedge fund, how can a social media marketing strategy be implemented, especially considering the uncertainty in digital currency?
Establish Normative Ethics
If you want to dust off your old Marketing I textbook, you’ll find that the term “normative ethics” is a justification-related moral standard that determines why a decision is being practiced and articulated. The aspects of crypto that should be emphasized (i.e. trustworthiness, transparency, data integrity) all fall under this ethical framework. These ethics emphasize guidelines for decision makers (or in this case, the consumer) to make more socially responsible judgements.
In working with a client, determining normative practices will be key in evaluating the potential business’s affect, behavior, and cognitions, and how they would be evaluated. The centrality of this mutually transparent relationship will be critical in deciding whether or not the specific crypto is a good match for your firm.
Empower Consumers
In the sharing economy, consumers will always take on expanded roles. When dealing with virtual currency, your audience may be elevated to a prosumer, adapting to such responsibilities related to promotion and quality control. As per The Middleman Economy by Marina Krakovsky, those roles can include “trader, a miner, a validator, or a developer.” As a result, the empowered consumer will eventually shape the operational transformation of a particular blockchain platform or brand. If the crypto company holds themselves to the highest standard of moral values and duties, it’s the consumers/prosumers responsibility to maintain these existing expectations in the crypto communities.
Emphasize Usage
It’s not hard to see the widespread usage of crypto in our day-to-day routine. Bitcoin can now be used in nearly every eCommerce website. There are also stores that accept virtual currency as a payment, undercutting the laws of standard credit cards and PayPal.
For digital marketers, examples of SEO, PPC, and content marketing can promote this aspect of investing in the service. As an aside, mining is currently the most popular type of crypto startup, and emphasizes ecological issues, further supporting businesses transparency as being environmentally conscious. Most mining is made by energy by-products like natural flared gas to mine Bitcoin — an issue that has so far become problematic for the crypto market.
Selecting The Proper Platform
Despite the recent bad publicity in FTX, the blockchain market is still expected to grow to $20 billion in annual revenue. Therefore, competition in the global crypto industry remains fierce with over 300 million crypto users worldwide.
That’s a ton of viewers.
Sharing content builds authority and trust for guidance, specifically in choosing the proper social media channel to publish. Facebook remains the most popular platform, but its appeal to the older generation that struggles to catch up with digital currency may be problematic. On the opposite end of the age spectrum, Snapchat and Instagram are for the younger generation that may lack adequate finances to get into crypto.
Enter Twitter.
The app has a large community of crypto enthusiasts and promoters, often supplemented by the numerous thought leaders that constantly share information on the platform. Reddit, Discord, and Telegram, amongst others, are appealing options to connect to the audience, both formally and informally.
Over 2,000 cryptocurrencies failed last year alone, and FTX has cast the industry in a harsh light. However, the global crypto market hovers at $983.72 billion — it’s far from going away.
We like to believe we have a finger on the pulse of social media marketing. To hear about our current and forward-thinking digital strategy, contact Firebelly Marketing today.