The revival of the cryptocurrency market that began in the middle of last year led to the creation of dozens of blockchain and cryptocurrency startup projects. However, only 10% of these newcomers will survive and an even smaller percentage will manage to break even during their first 2-3 years of existence. Probably less than a handful will become unicorns. These figures are to be expected, as most startups go into the market with no notion of realizing a business idea, but purely to reap quick returns on investment. We discussed the approaches startups can take to become truly successful, as well as why the market filters out all but a precious few, with Alexander Mamasidikov, co-founder of MinePlex CrossFi Banking.
Q: Alexander, the cryptocurrency market remains quite competitive today. How can new projects position themselves to stand out from their competitors in the market?
A: The main goal of any project is to help people solve a problem that is relevant to them, not to prove how cool you are or show how much you want to make money in the market.
It is necessary to thoroughly know your target audience and be confident in the quality of the project. Then you’ll make headway. You need to actively communicate with your audience, both potential and real, on various social networks and target platforms. You need to understand where your customers are currently communicating. Interaction with your potential audience is the key to success.
Q: What marketing tools should crypto companies use, and which are definitely not suitable due to the specifics of the market?
A: Marketing is a constant process of attracting attention and maintaining a dialogue with your clients. You create a hypothesis, test it, evaluate it, and move on to create a new one. No tool will work immediately, with a 100% guarantee. It’s a matter of constantly searching for new approaches and working with your target audience on a daily basis. Marketers are faced with very interesting tasks when considering the specific characteristics of the crypto market. In my opinion, to market fintech products, which not many people understand, it is essential to teach users how to wield these new financial instruments competently. Marketers also have to take into account the preconceived attitudes of investors, authorities, and users with regard to these products.
Correctly identifying your target audience is the first step for any project. Among the necessary marketing tools, I will name analytics and competent SEO settings. Social networks are currently the most effective medium for communicating directly with users. They become your guides to the world of users. E-mail marketing is another effective tool. It is also important to build the trust and loyalty of your audience. That’s what podcasts and influencers are for.
Due to the specifics of the market and its regulation (or, rather, lack thereof), questions arise about which platforms to work with. Plus, marketing takes place mainly in digital space, which is where the new generation of crypto users lives.
Q: Advertising cryptocurrencies is still widely prohibited, although we are seeing this situation ease somewhat now. For example, Google has softened its advertising policy towards crypto companies. And yet, most use gray promotion methods. Tell us more about these?
A: Gray promotion methods are a double-edged sword. They can raise a project to the top or turn it into a scam. These include various fake views, dodgy links, overinflated ratings, spam, an excess of keywords, and copyright violations. It is these dishonest methods that turn away users. I don’t see the point in them. Gaining a clear understanding of your audience and working to meet its needs are the main methods for promoting projects.
Q: How effective is influencer marketing today, given that some experts’ tweets can literally lead to market booms or busts?
A: At present, influence marketing is the most effective tool for promoting complex products. This is because people are more trusting of explanations made by experts whom they’ve followed for a long time than of those given by unknown specialists. Trust is a critical factor when people are selecting products, so you need to choose the opinion leader you plan to work with very carefully.
Q: Do you think the Shiba Inu phenomenon appeared mainly due to effective marketing and PR, or do you consider it a high-quality token? How did the project manage to promote its coin so well that the most popular exchanges began listing it only a couple of days after it hit the market?
A: I don’t think it’s marketing. This is a good example of proper Growth Hacking. The marketers behind the coin are actively experimenting in the information field, providing content that targets a certain segment of the audience. The project stated a specific goal – to surpass DogeCoin’s capitalization – and began moving towards it using all means possible.
However, in my opinion, meme coins are rather speculative products designed to earn money in the here and now. As experts say, this is not a financial, but rather a social trend.
Q: Do you believe in marketing crypto projects and ICOs without funding? How much will an effective advertising campaign cost a crypto project?
A: There is no definite answer here. Every situation is individual. There are projects that have been launched with no money, solely based on wild enthusiasm. A lot of projects like this have succeeded. It all depends on what the project is built on, who is behind it, and how the strategy is developed.
Q: Can you give us your top five tips for crypto startups that are just entering the market and don’t know how to promote themselves?
A: If a project is just entering the market, I advise you to reanalyze your target audience and make sure your project addresses their main problem. Feel your audience.
Create an amazing team. This is your family for the project. If you have highly qualified specialists with whom you share trust and understanding, you will achieve any goal.
Create a strong White Paper. This is the basis of the crypto project, which will be accessed by thousands of your potential users. It should be easily understandable and crystal clear.
Come up with a marketing and promotion strategy. The right strategy will allow you to reach every member of your target audience. Create a cool website, develop a media publication plan, start your own blog, etc. Experiment and don’t be obsessive: always leave room for changes… in everything.
Enter the market with a ready-made product, as it is very difficult to attract investors to just a beautiful idea. I would say, almost unrealistic.
Turn your customers into your fans. When you pass a flame to people with a torch, they will carry it further.
