Crypto marketing needs to change. Make 2023 the year of influencer accountability

It was for the ill-fated Fyre Festival that sold a beachside paradise with A-list models, including millennial Kendall Jenner, who flocked to the Bahamas in 2017.

We all know what happened next. Destroyed local businesses, decrepit cheese sandwiches and deceived customers have filed class action lawsuits against organizers who used their money to fund decadent lifestyles. At the center of the media circus was the influencer his marketing role. Celebrities faltered after government agencies knocked for failing to properly vette the new concept or disclose their financial ties to Fyre. was forced to pay $90,000 from

Nemo Yang is the founder and CEO of aira Web3 marketing platform.

From its tropical setting to the celebrity families of the dynasties involved, Fyre Festival reflects the FTX meltdown and other high-profile cryptocurrency scandals that have blown up in recent months. Despite the lack of regulatory clarity surrounding cryptocurrencies, and even more so the compliance scrutiny traditional financial institutions face, Sam Bankman-Fried’s team has been working on Jimmy Buffett’s Margaritaville. Having continued to lose billions while piling up his $55,000 bar tab, Tom Brady gave his FTX the seal of approval. in the Bahamas. Kendall Jenner’s half-sister Kim Kardashian was similarly targeted by regulators, and he had to pay a $1.26 million fine for promoting Ethereum Max. Even more ironically, the land in Great Exuma where Billy McFarland owned Fire is now being sold as a Non-Fungible Token (NFT) Parcel, owned by the same developer behind Miami Beach’s Setai Hotel. is marketed to cryptoheads by.

Celebrities and their managers who provide advertising opportunities have a responsibility to their fans and followers to properly vette their products and services and really understand what they are promoting. While most Web3 builders understand the risks of investing in cryptocurrency projects and have some knowledge of DeFi architecture, Kim Kardashian’s 228 million followers on Instagram are more likely to be criticized for portfolio allocation, etc. It is unlikely that you are familiar with the topic of They are sheep being led to slaughter by someone who has never even expressed an opinion on Ethereum.

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Unfortunately, celebrities are only part of the current crypto marketing problem. An industry of Web3 YouTubers, Twitch streamers, and TikTok stars has emerged during the coronavirus pandemic. Most of these creators posted videos in good faith and wanted to share their passion for cryptocurrencies and blockchain, but unfortunately, when they made money in retail and paid for fakes. Some do not disclose when or if they made a profit.

Read more: Jocelyn Yang – Read and Cry: 5 Crypto Influencers Who Dumped Their Followers

To create a Web3 without bad actors promoting pump-and-dump schemes, the incentive structure of crypto marketing needs to change. The U.S. Federal Trade Commission already requires individuals to disclose promotional payments, but Web3 is full of unproven startups, value propositions and teams that need even greater accountability. Promoters in this space should explain why they chose to work with a particular brand. Unlike skin care products and commodities, cryptocurrencies have a direct impact on financial markets and carry the risk of derivative trading and contagion to other institutions. Blockchain technology is built with transparency in mind, as all transactions appear on a public ledger. Those who promote the virtues of technology should follow this core principle, both legally and morally, and the industry should hold them accountable.

Crypto influencers, marketers, and PR professionals delve into the underlying architecture of blockchain, revealing their own ideologies for crypto and decentralization as a guide for choosing projects to approve. need to spend more time on Only by educating themselves first can they educate others. This statement should be obvious, but in the wake of the failures of FTX and the Celsius Network, the industry has come to understand the core technology. Or a “no tolerance” policy should be adopted against promoters who blatantly hype their brands without respect.

As a first step, businesses and influencers should start measuring the social media reach of their campaigns as a way to quantify their potential impact on financial markets and large population groups. Oxygen is on a mission to bring transparency to Web2 and Web3 growth marketing by using data analytics to understand and validate online creators and brands and their associated on-chain activity. increase. And industry partners such as her CreatorDAO, a funding and technology platform that helps creators, play an active role in educating influencers on the best advertising techniques to protect their audience. I’ve seen By being clear about who you’re targeting and how you’re targeting it, your marketing team takes an important step toward accountability.

Cryptocurrency marketing in 2023 will inevitably be defined by establishing new regulatory frameworks, but it will also require embracing new cultures and attitudes. Those responsible for publicizing a crypto company should at least be able to articulate how the concept fits into the entire blockchain ecosystem, from protocol level to consensus.

Those in positions of authority (VCs, founders, etc.) in Web3 promote the company from a standpoint of good faith, admit it when it’s wrong, and don’t be a compatible brand association but behind the code. Ideologically driven individuals can stand out. of a centralized vested interest group.