When I’ve joined crypto, I’ve read a lot, trying to understand how to invest my money. Since there are thousands of projects, it was a challenge to choose which are the best tokens to invest in. I was lucky at that time that the first exchange that I’ve used was Tradesilvania, a Romanian crypto exchange. I’m still using that exchange because it has the lowest fees and there is no fee for adding money into your wallet or for buying crypto with a credit card.
Only projects with real life utility are worth investing?
One of the recommendations read everywhere was to invest in projects that are useful and that can bring real use in real life. Accordingly, I’ve started to do research about any project before buying tokens. On the other hand, I was witness of Shiba Inu explosive growth, and I’ve seen many other projects without any utility that had a fantastic growth in a very short period of time.
At this moment I think that a project in crypto market hasn’t to be useful in real life in order to bring wealth for investors or for traders. Not at all! It must have a great marketing and it must create a very large community. In order to do this, it is important to be engaging via social media platforms and to bring the feeling of a great and developing community.
Real life products without having a utility
Even if you go beyond the crypto projects, we may see products with decades of existence in the real world that aren’t useful. In my opinion, Coca-Cola or Pepsi are two good examples in this context. I’m aware that some readers may find this example as inappropriate, since there are many people who love to drink Coca-Cola or Pepsi. I’m not criticizing those who love these drinks; neither have I intended to change their opinion regarding those drinks.
I just want to point out some examples of products that aren’t useful in real life, and yet they brought wealth for a lot of people and investors. Coca-Cola may be tasty, but isn’t useful. It has a lot of sugar and many ingredients that may be dangerous for human health, as many studies point out such facts [1], [2], [3].
On the other hand, we may assume that Coca-Cola is one of the largest communities all over the world, if we discuss about those ones who drink Coke in every part of the globe. And this is due to a great marketing strategy.
Sometimes marketing is far more important than real utility
Coca-Cola has been aggressively promoted across various media channels such as TV ads, sponsorships or online ads. Almost everyone knows that Santa Claus and Christmas comes with Coca-Cola trucks. Moreover, Coca-Cola has sponsored events like NBA, NASCAR or the Olympics. As you can see, even if Coca-Cola has been created at the end of the 19th century, this product is still advertised in various channels and mediums nowadays. Coca-Cola marketing strategy is studied as one of the most successful marketing strategy [4], [5].
Going back to crypto, we may observe that there are projects and exchanges that are promoting using various online channels, but also by becoming sponsors for sport events or sport arenas [6], [7], [8], [9], [10]. Furthermore, the hype in meme coins for example shows that social media and the online influence is much more important in price evolution than any other real utility of those tokens [11]. Accordingly, marketing is more valuable for a product than its real value or utility. The value of a certain product is giving by the market itself, by those who resonates with a product or a service and decide to put their money into it.
Conclude remarks
Concluding, I consider that wealth may be brought even by projects that don’t have a utility in real life. This assumption is valid for both crypto market and stock market. Since a lot of people are convinced through the help of marketing tools that something is worth to invest or to buy, then nothing else is important. Based on that, in the upcoming bull market, I will seriously consider focusing on tokens that aren’t useful in real life. Of course, those projects will represent a short term investment, but they will be on my radar.
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