The #1 reason why a cryptocurrency succeeds or fails

The #1 reason why a cryptocurrency succeeds or fails


Marketing.

Yes, it’s that simple. But for many, it really isn’t that simple hence the failures.

You might think your favourite project should do well because of its fundamentals and real world applications but sadly, this isn’t always the case. The success of any project, product or indeed cryptocurrency heavily relies on how it’s marketed to the general public.

Companies like Apple have perfected this to an expert level over the last decade. They can sell millions of new products every year that hardly have a 5% difference from the previous year's model with ease.

And why is this? ...Marketing.

Apple has some of the best marketers in the game, hence their domination over the technology market. Yes they make great products, no doubt, but they feel and sound even sweeter when the Apple marketing machine tells you how their product will improve your life.

They know how to make you feel good, how to make you feel part of something and just in general they make you feel. And this is why they’re at the top of the game. 

As humans, we are very emotional beings and the best way to persuade, motivate and influence us, is to make us feel stuff.

 

Tell me more...

Now let’s apply this lens to the crypto world.

Many projects live and die by the grace of good marketing. Whether that’s run by the official project team or the hype merchants across social media is of no relevance. What is relevant is that a project has exposure, it matters that people are talking about it or at the very least have heard of it.

I have two examples of this to share with you that demonstrate expert marketing to promote a mediocre product and how lack of any marketing has pushed a great project under the radar.

Firstly, the well promoted by completely mediocre product - Dogecoin.

I’m sure we are all aware of the Dogecoin phenomenon that has gripped the crypto and general investing world across 2021. No one has escaped seeing that shiny Shiba Inu face grace the feeds of social media and general media outlets the world over.

Even if you’ve never invested in digital assets of any kind or not delved into investing in general, you probably have still heard of Dogecoin. Mainstream media was covering it as the “fake asset” that was making people millionaires. Whilst not all of this was true, it was still coverage.

But, how did a mediocre project which was created as a joke about the cryptoverse and it’s volatility gain such notoriety across the world?

Again, MARKETING!

From it’s early days, for whatever reason, this project had a strong community following. Probably because the project sounded too stupid to be true but nonetheless it had a strong community presence.

And, as we know, this was only amplified by 3000% when a certain billionaire started to provide daily commentary on this project, which with time, sent it to the stratosphere of stardom.

No one batted an eyelid at whether the project was sustainable, had strong fundamentals or solved any real world problem. All people knew was that everyone was talking about it and they wanted a piece of the action too.

Good marketing can trump any rational moments of common sense.

So, that’s a short story on how marketing can elevate a poor product. But what about the flipside? How does lack of marketing affect a strong project?

The best example of this for me right now comes in the form of Algorand.

The team at Algorand have put together a really strong project but did you know that? Probably not!

It has a literal world famous team headed by a former Turing prize winner, co-founder of cryptography technologies and an active professor at MIT’s engineering and computer science department. 

Plus, it has key strategic partnerships with a wealth of leading organisations and it’s token is available on all major exchanges. And, shockingly in the crypto space, it’s actually trying to solve real problems as the team aims to solve the famous Blockchain Trilemma and help create a new future of finance.

Yet, do you hear much about them? Nope...and that’s sad right? Because (and I hope you’ll agree with me here) this sounds like a pretty strong project.

And this is my point. You can be the best thing in the world right now but if no one knows about you, what you do or why they should care then sadly, you won’t get far.

These are not isolated examples. Many more projects will succeed and fail through quality or poor marketing.

So, sometimes it’s not about who does it best - it’s about who makes the most noise.

It’s not fair but sadly, the emotion of FOMO is bigger than our common sense.


More writing from me…

Algorand Explained

The Dogecoin story: A tale of dog memes, billionaire tweets and lockdown boredom


Important

I’m not a financial advisor, a psychologist or any from of accredited professional. As such, this is not financial advice and I’m not qualified or licensed to provide anything like this. This content is a bunch of thoughts from a fellow human for educational purposes only — that is all.

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That Blockchain Thing
That Blockchain Thing

Tech enthusiast and curious cryptonite. Sharing educational content to make sense of this digital world.


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That Blockchain Thing Blog

Simple educational crypto content from a fellow human.

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