The influencer sway on investors
In the blockchain community of ICO or Initial Coin Offering investors and cryptocurrency enthusiasts, influencers are people whose opinions can determine the worth of cryptocurrencies. So, better to know about influencers first. Just like every other web community, in the crypto space, influencers use social media platforms such as YouTube, Instagram, and Twitter to churn out content that focuses on cryptocurrency and the web subculture created around it. Many factors make the cryptocurrency investing sphere an extremely complicated one. Ever-evolving regulations, blockchain tech concepts, highly unpredictable market trends and the influx of scammers are the complicated issues investors need to deal with. Influencers step in to make the blockchain lexicon, lucid and easier to understand for the common man, thereby promoting or evangelising the domain and or products. So influencers essentially make these complicated issues clear to non-technical people.
Various influencers have unique areas of specialisation and interests in the blockchain sphere but typically, an influencer with devout followers is a thought leader whose content has widespread market consequences. Due to traditional digital advertising losing its relevance to the blockchain community, crypto influencers are an essential alternative. For instance, since 2016, Reddit placed a ban on cryptocurrency ads, Google and Twitter followed suit.
These social media platforms and search engines cover most of the digital advertising marketplace and without these advertisement platforms, fintech and cryptocurrency brands must find an alternative to conventional digital marketing strategies. Data even shows that Facebook and Google had a 99% ad revenue in the Q3 and Q4 of 2016 alone. That’s some major market to lose out on which is why taking advantage of influencers is necessary for any crypto brand. Influencers are a lot more effective in inducing consumer engagement than conventional digital marketing tactics. In fact, research shows 92% of consumers’ purchases rely on influencer opinion. Furthermore, the promotional content churned out by influencers is naturally included in their content, so followers aren’t turned off by numerous advertisements.
An influencer can market a blockchain project to its relevant audience of eager investors. If the project manages to impress investors, then the brand’s growth gets a boost organically – token value and community growth.
Observing the behaviour of gullible fans, the SEC in the US has flagged celebrity endorsements, from cryptocurrencies to special purpose acquisition vehicles (SPACs). They cautioned that celebrity involvement in a SPAC does not mean that the investment in a particular SPAC or SPACs generally is appropriate for all investors. Celebrities, like anyone else, can be lured into participating in a risky investment or may be better able to sustain the risk of loss. It’s never a good idea to invest in something just because someone famous says it’s a good investment. When celebrities sponsor SPACs, some investors believe that their presence increases the value of the investment. But this is often an illusion, as many of these big-name backers have no proven track record. Dubious operators find celebrity promoters especially useful. In 2017, Paris Hilton boosted little-known cryptocurrency LydianCoin to prominence, before reversing herself as its CEO got embroiled in legal problems that landed him in jail. Influencers are great for the business, but here is a statutory warning — look beyond the celebrity, and remember to never judge a book by its cover.