Why Utilizing Social Media Influence Matters in the Crypto Space
The crypto sector has flourished over the years thanks to the influence of social media and digital marketing. The hype around blockchain technology and cryptocurrencies would have you believe that a large number of people are aware of this growing industry. But contrary to the hype, the buzz eludes the majority of people.
According to Statista data, Nigeria has the world’s largest number of people who used or owned cryptocurrency. However, only 32% of the population is into crypto and this figure drops down to 6% in the U.S.
Cryptocurrency prevalence in different countries. |Source: Statista
As alarming as these figures could be, they offer an opportunity for entrepreneurs and crypto projects to reach new audiences through social media. And there are arguments to support this theory.
About 3.96 billion people all over the world use social media. In 2015, about 2.07 billion people used social media. The number of current social media users equates to 50.6% of the entire global population. As of 2020, a person had 8.6 social media accounts on average.
From a marketing perspective, social media is an untapped gold mine with the potential to capture a wider audience.
Social Media’s Influence in the Crypto Sector
The history of bitcoin and cryptocurrencies favor social media platforms, communities, and chat rooms. Even without this history, there are various reasons that make social media a powerful tool within the crypto sector.
Human Attention Span
It is said that we live in the information age. And there is no one who can deny this given the amount of information that people have to receive and process on a daily basis. If each person had to focus on all the news and events of the world, they would run out of time to do all the things they need to do each day.
Moreover, a study by Microsoft in 2000 found that a human being could focus on one thing for about 12 seconds. 15 years down the line, the attention span dropped to 8 seconds.
This basically means that people don’t have the patience to go over long articles. They turn to social media platforms such as Twitter because they get the main points of the story in just 140 characters — maybe more sometimes. This allows us to process more information in a short space of time without upsetting our declining attention span.
The crypto industry is fast moving and there are lots of developments. Social media provides an easy way to keep up with trends.
Token holders on the lookout
The crypto community is made up of lots of retail traders who spend most of their time glued on their screens analyzing charts. News is very important for traders as it can determine the direction the markets can take.
Crypto token holders turn to social media platforms for key news takeaways. Social media provides succinct content that is easy to digest and learn from.
Are these factors enough to inform us that social media is influential in the crypto space? Not completely.
The other factors we can use are how criminals and regulators treat social media in relation to the cryptocurrency market.
Let’s take a look at the 2020 Bitcoin Twitter hack and China’s stance on cryptocurrency related social media accounts.
China crackdown on crypto-related social media accounts
China’s hostile stance on cryptocurrencies is well-documented. The country, known for its great firewall, cracked down on social media accounts related to crypto. Weibo, China’s equivalent of Twitter, saw crypto accounts being blocked as the government stepped up its authority.
Chinese authorities know the power of social media in the crypto circles. This tactic is not new. If you don’t want people to drink water, you don’t take away their glasses. You remove the water source. In the crypto sphere, social media is the water source.
2020 Bitcoin Twitter Hack
On 15 July 2020, hackers infiltrated 130 high profile Twitter accounts and used them to promote a bitcoin scam before the social media giant put a stop to it. In a matter of minutes, the hackers raised $110,000 in Bitcoin from 320 transactions. No crime should ever be condoned and if anything, lessons should be learned.
The Twitter hack taught the world two important lessons:
- Twitter is a powerful community full of crypto followers and enthusiasts. The social media platform is highly favored by cryptocurrency because of its open nature and short posts.
- The second lesson is the power of influencers. The accounts of well known people such as Elon Musk, Bill Gates, Barack Obama, Joe Biden, Jeff Bezos, Floyd Mayweather, Warren Buffett, Kanye West, and more were compromised. This was a show that influencers have the power to sway people and push them to do things that they would otherwise not have done. It should not come as a surprise that Buffett, who is not a big fan of crypto, had his account hacked to promote a crypto scam. His name carries a lot of weight and scammers know that.
And it is this undeniable knowledge that forms the core basis of Coinfluence’s mission.
Coinfluence: Organizing the Chaos
Influencer marketing is a vital tool for bootstrapping a product. It could potentially market a product or service to millions of people if done right. However, it becomes a problem if influencers’ accounts are compromised and exploited by bad actors. Sometimes, influencers may do it the wrong way. In 2018, two celebrities were indicted for touting a crypto project unlawfully.
Coinfluence provides a platform of vetted influencers who are chosen to market worthwhile projects on various social media platforms. The influencers are not just random people but those who believe in the industry.
The importance of social media and influencers is observed in the growing number of bad actors impersonating well-known people. With Coinfluence, there is no impersonation of influencers.
Coinfluence brings together the benefits of influencer and social media marketing.
Final Thoughts
The power of social media influence in the crypto space is not going to diminish anytime soon. The crackdown of social media platforms in China to curb crypto activities is an indication of their importance and relevance. Social media is the megaphone used to amplify the voice of the crypto sector. Without it, the industry would not have grown as much as it has.
The next step towards mass adoption of crypto will come from harnessing social media with influencers. This is the role being played by Coinfluence with the goal of reaching billions of people.
If you want to keep updated on worthwhile crypto projects or want your crypto project to fully utilize the influence of social media, get in touch with Coinfluence.
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