In cryptocurrency start-ups' fast-paced and dynamic world, effective marketing strategies play a pivotal role in attracting investors, acquiring users, and building credibility. With the surge in popularity of cryptocurrencies and blockchain technology, start-ups need to navigate a unique landscape and employ specialized marketing approaches to stand out.
This article will explore key marketing strategies that can propel crypto start-ups to success, backed by examples and case studies.
Here are a few words about the crypto industry and practical terms before we move on:
- The cryptocurrency industry operates under distinct characteristics and challenges compared to traditional markets. Crypto start-ups must comprehend these nuances to tailor their marketing strategies effectively.
- Unlike traditional markets, crypto technology and terminology are relatively new and more complex for the average audience. It means that crypto start-ups need to educate their potential users and investors about blockchain technology, its prospects, and how it works.
Let's start with some crypto start-up terms every business person needs to know:
ICO is a way to attract initial investment in crypto shares, first launched in 2013. Before going public in the financial market, organizations meet with potential investors and financial analysts. The purpose of such events is to present a company in the best light and share its prospects and financial performance. So, the cryptocurrency market runs the same advertising campaign.
Each crypto campaign is a token - the project's own cryptocurrency. While tokens can take various forms, their fundamental purpose remains the same: investors acquire tokens to sell them at a higher price in the future.
Before the ICO, a crypto start-up has two goals:
- Form an idea for the project and present this project way better than numerous competitors.
- To attract the interest of investors. The aim is also to prove that this start-up is promising and the founders are honest and responsible.
An initial exchange offering is a project conducted by a cryptocurrency exchange. It is done on behalf of a company that seeks additional funding. The exchange sells tokens, and the company, in return, pays listing fees plus a percentage of the tokens sold.
IEO offers significant benefits to new projects, as investor interest can be driven by trust in the cryptocurrency exchange itself. Projects can leverage the exchange's credibility to attract investors by conducting an IEO on a reputable exchange. Once a token is listed, it immediately gains trading support from the platform, ensuring liquidity and market accessibility.
The exchange serves as a trusted marketplace for token sales, providing assurance that the project is legitimate and backed by a large community of real investors. It helps instill confidence in potential contributors and eliminate fraudulent or unreliable projects.
Since 2019, decentralized exchanges (DEX) on various blockchains have gained significant popularity. DEX exchanges distinguish themselves from conventional exchanges as they securely store our funds without asking for any personal information. This evolution led to the emergence of Initial DEX Offerings (IDOs), the primary decentralized fundraising method.
IDOs can be organized directly by start-ups or conducted on specialized platforms known as Launchpads. In June 2019, the first IDO occurred on the Binance DEX exchange, where the team introduced a token available for purchase until reaching a predetermined limit.
But please remember that preparing for such transactions can take months! Start-up teams need to find time to establish their presence in the cryptocurrency community, demonstrate their credibility, and attract an engaged audience.
The most popular tools for the promotion are:
- Targeted advertising
- Posts on social networks
- Publications in industry-specific media dedicated to cryptocurrency ICO or IDO.
- Press Releases
Before you move on to the promotion, you need to decide on the positioning of your product, which includes:
- Providing information about its benefits
- Describing the criteria for choosing the product
- Doing competitors analysis
And only after that your start-up is ready to be promoted.
One effective strategy to promote your project is to leverage social networks and forums. Start by exploring ICO-listing websites, which feature projects undergoing an Initial Coin Offering (ICO). These platforms provide a comprehensive list of the best start-ups for investment, showcasing their unique features and advantages.
To establish credibility, it is crucial to get your project listed on leading crypto-asset price tracking websites such as CoinMarketCap and CoinGecko. These platforms act as gateways, granting your project recognition and visibility in crypto.
The good news is that a wide array of platforms are available for start-up founders to publish content and engage with the community. Some of the most popular platforms include:
- YouTube (featuring crypto bloggers like BitBoy Crypto, Coin Bureau, Brian Jung, Data Dash, etc.)
For example, the team behind the USDX Wallet project has chosen Twitter as their primary platform for posting daily news and product announcements. They also maintain an active presence on Facebook and LinkedIn, sharing corporate updates and important information about application changes.
Another effective way to increase visibility and reach a wider audience for your cryptocurrency project. Platforms like Telegram and Google offer advertising options specifically tailored to crypto-related campaigns.
Telegram, for instance, hosts numerous channels dedicated to blockchain and cryptocurrencies. Some notable channels include:
- Binance Killers
- Crypto Inner Circle
- Crypto Bull
- WOLFX Signals
- My Crypto Paradise
Plus, many startup-focused websites offer advertising options. For example, platforms like Coinhunt feature a dedicated "Promoted Coins'' section where you can purchase ad space to showcase your project.
In countries where it is permissible, you may even consider outdoor advertising. Cryptocurrency projects have been known to advertise directly on the streets, with notable examples like SHIBA INU ads displayed in prominent locations such as Times Square in the United States.
Remember that people trust people. If you want to promote your project, introduce potential investors to those included in your publications. Tell them about your team, aims, and benefits.
And do not stress all the time on the amount of money you are going to raise. The financial aspect is better left for later. The main goal is to get through to people and let them know that your start-up is in demand, relevant to the market, and can bring them profit.