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Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency actually falls under the larger category of blockchain.

Cryptocurrency is a digital currency in which transactions are verified and records are maintained by a decentralized system using cryptography.  Essentially, it is a currency that runs through the utilization of blockchain technology.  Blockchain is a term that refers to a set of technologies that uses a system of record keeping by cryptographically linking blocks of transaction data together in a ledger.

While each cryptocurrency projects will have a special use case, the really valuable component is how those projects are using blockchain technology.  Unfortunately, while blockchain technology is making inroads, it is still relatively unknown.

Blockchain Technology is Growing but Remains Relatively Unknown

One fascinating aspect of the business growth vs. marketing debate is even the underlying technology upon which crypto is based is still relatively unknown.  Netherlands-based credit management firm, Onguard, published results of a survey conducted by Verdict, about the awareness of blockchain technology and how it might prove useful within the financial service space.  Shockingly, 29% of finance professionals surveyed had no idea what blockchain technology is, and 19% had no clue how it could be deployed within the business world.

The results published in this survey are eye opening because although blockchain is becoming a buzz word within the business world, those who would perhaps be tasked with the responsibility of deploying such technology wouldn’t know where or how to begin.  This circles back to the question of how important marketing is, specifically Blockchain PR, in building a business.  I would argue that is of paramount importance.  While growing a business organically through sales and partnerships is of course important, there will be no business or sales or partnerships if people have no idea it exists.  Further, if financial professionals don’t even have a strong grasp of the underlying technology, how could they possibly begin to understand more niche projects within the cryptocurrency world?

Final Thoughts

As to whether crypto companies understand how important marketing is, it seems the answer is a resounding yes.  There appears to be a growing need for community/ecosystem managers within the cryptocurrency space.  In fact, Chainlink Labs is currently looking for an ecosystem manager.  These roles are normally heavily involved in creating content, partnering with social media influencers, managing media channels such as Reddit and Telegram, and ultimately attempting to build a thriving community.

At the end of the day, blockchain technology and cryptocurrency are still relative unknowns within the finance world.  I have no doubt that this will change over time, but until the day comes, it is imperative for companies to take advantage of all the available communication channels in order to spread awareness.  Each company has its own mission and purpose but, ultimately, we are all in this together.  If it’s good for one, it’s good for all.

Image by Icons8_team from Pixabay

Altcoins

XRP Price Outlook Seems Promising as US Debt Ceiling Deal Sparks Risk Sentiment

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XRP price has been in a steady uptrend for five consecutive days despite macroeconomic factors weighing on markets. At the time of writing, XRP was trading slightly higher at $0.4853, with its market cap inching higher for the day. The coin’s volume has also moved higher in the past 24 hours, hinting at a bullish outlook.

Fundamental Analysis

XRP price has staged a significant recovery in the past few days, jumping more than 6% in the past week. The coin has managed to secure a place among the best-performing altcoins in the past week. Its market cap has tilted higher to $25 billion, ranking the asset 6th after USD Coin.

The cryptocurrency market was in the green on Monday, with the global crypto market cap jumping more than 1% over the day to $1.15 trillion. The total cryptocurrency market volume increased by nearly 62% over the same period. The recent rally in the crypto market has been on the back of the finalization of the US debt ceiling deal that has been gnawing on markets for the past few days.

The US dollar shied away from its six-month high on Monday after US President Biden and House Speaker Kevin McCarthy finalized a budget agreement, suspending the $31.4 trillion debt ceiling to 2025. This will allow the US government to continue borrowing money and pay its bills on time. Even so, Congress must pass the deal before June…

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Ethereum Price: ETH Has Managed to Flip Major Hurdle at $1,800

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Ethereum price has been in consolidation mode for the past few days as macroeconomic concerns send investors into conservation mode. At the time of writing, Ethereum was trading slightly higher at $1,832.32. ETH’s total market cap, as well as its total volume, have increased over the past 24 hours. It currently has a market capitalization of $220 billion.

Fundamental Analysis

Ethereum price has been moving sideways for the past few days, in tandem with the global cryptocurrency market as investors shift their focus to US debt ceiling talks and Fed’s monetary policy outlook. The global crypto market cap has increased by 1.30% over the last day to $1.13 trillion, while the total crypto market volume fell by more than 7%.

The cryptocurrency market has been moving sideways for the past few days characterized by a mix of bullish and bearish trading sessions. The recent trend in the cryptocurrency market has been amid the uncertainty around the outcome of the US debt ceiling talks and the prospect of a US government default. With less than a week to default, investors have shifted to conservation mode, especially around risk assets such as cryptocurrencies.

Potential interest rate hikes by the US Federal Reserve have also been weighing on the markets. Traders have ramped up bets of an interest rate hike in the Fed’s next meeting in June after several policymakers sounded their support. According to a gauge released on Friday,…

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Polkadot Price is in Consolidation Mode: What Next?

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Polkadot price has been under intense pressure for the past few days amid the recent bearish sentiment in the crypto market. At the time of writing, DOT was barely unchanged, trading at $5.351. The altcoin has dipped more than 25% for the past month but remains 24.23% higher in the year to date. The asset’s total market cap has slipped over the last day to $6.343 billion, ranking it the 13th largest cryptocurrency.

Is the Worst Yet to Come?

Polkadot price has been consolidating for the past few days amid the recent sell-off in the crypto market. Statistics by Coinmarketcap show that the global crypto market cap has dropped 1.29% over the last day to $1.13 trillion, while the total crypto market volume decreased by nearly 7%.

The biggest cryptocurrencies, Bitcoin and Ethereum, have been in a freefall for the past few days, falling to $26,880 and $1,807, respectively. Most altcoins, including BNB, Cardano, Solana, Shiba Inu, and Avalanche, have plunged seeing that most altcoins move in tandem with the performance of heavyweights Bitcoin and Ethereum.

Looking ahead at the global market mayhem with the US debt ceiling debate and the US banking crisis, investors expect more downside in the crypto market. The US dollar has continued growing stronger, hovering around a six-month high against the Yen, as optimism around the US debt ceiling talks in Washington raised expectations of higher-for-longer interest rates.

Two…

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