On March 22, 2023, The National Assembly’s Economics Committee voted to approve a plan prohibiting influencers on social media networks from directly or indirectly promoting crypto asset services from unlicensed suppliers. According to the proposal, individuals caught violating the prohibitions could face a two-year prison sentence and a 30,000 euro fine. On May 25, 2023, the regulation was formally adopted with the unanimous consent of French senators and lawmakers from the Economic Affairs Committee.
Faced with the growing abuse of online influence, and even for the purpose of fraud, French senators want legislation to strengthen the regulation and accountability of all influencers, including foreign influencers.
The influence of these influencers on social media networks is so significant that the public can be convinced by them to join or invest in any project that they promote.
However, it is exactly because of the surge in the number of users brought about by the promotion that it will cause fatal damage when faced with the subsequent “black swan”.
The US SEC sued former NBA star Paul Pierce for promoting EMAX on Twitter;
The US SEC accuses US reality TV star Kim Kardashian of promoting EMAX;
A $1 billion lawsuit has been filed against several financial YouTubers who promoted FTX;
NBA star Shaquille O’Neal was sued by investors for repeatedly promoting crypto products.
The French ban will undoubtedly make the crypto industry, which is already in a sluggish state, worse. For the current crypto industry, the following ways can help them get promoted:
However, in the past two years, with the tightening of policies on the crypto industry in most countries, platforms such as Facebook and Instagram have prohibited NFT-related content, and Google Ads/Twitter Ads have greatly reduced their support. If there is no KOL promotion, the development of crypto projects can only rely on their own brand operation and incentive activities.
Therefore, Web3 marketing will be the most important channel for the promotion of crypto projects.
First, from the perspective of the general environment, the current Web3 industry is more profit-driven. Simply put, users prefer to participate in projects that can obtain benefits. The simpler and the higher the value, the more users can be attracted;
Second, from the perspective of traffic, the number of users aggregated by mainstream marketing growth platforms has been comparable to or even surpassed that of KOLs, such as the Galxe Twitter account with followers 800K+, the TaskOn Twitter account with followers 250K+;
Third, from a functional point of view, these marketing platforms not only provide social media exposure, but also help projects attract users to register, download, use, and even consume by setting on-chain tasks;
Finally, from the perspective of cost performance, using the marketing platform for activities, the project only needs to pay the reward amount and gas fee.
Let’s take the medium-sized TaskOn platform as an example:
In addition, the author also found an interesting function of the platform: in the USDD×TaskOn joint campaign, there is a geographical restriction for users to be qualified.
*United States is not in the eligible countries/regions.
This function is very useful for crypto projects when the policies of various countries are tightened. For example, the OTC activities created by Binance can pass regional restrictions to prevent users in Australia from using Australian dollars to participate, and when crypto projects create IDO activities, users in France can be restricted from participating.
In short, based on the geographical restriction function, crypto projects can prevent users from a country from participating in their own ecosystem and avoid violating relevant government orders and laws. Not only help themselves avoid legal risks but also protect the interests of users.
Of course, this function can not only prevent specific regions from participating but also can allow specific regions to participate. The project can provide special activities for users in a certain area, such as designing community activities based on regional festivals, such as Muslim Ramadan, Japanese Hinamatsuri, etc.
To sum up, under the circumstances that the policy is pressing and the promotion cannot be realized, the crypto project may try to reach more potential users in different countries and regions through the marketing growth platform and carry out its own brand promotion and ecological growth in the regions permitted by the policy.