The crypto craze has spawned hundreds of new startups and millions of dollars’ worth of investment. It’s been easy to identify where the industry needs some serious help, with scammy ICOs for defi promotion and disorganized projects. But one thing often overlooked is how crypto sponsors are actually helping to feed the frenzy. This article will explore the many ways cryptocurrency promotions are making this bubble worse for everyone except the advertisers.
1. The Promise of Riches
Let’s be honest, most business owners would love to find a way to convert their hard-earned money into something that’s literally worth nothing. Not everybody is capitalist or a libertarian (yes, there are many of them), but those who are usually can’t imagine doing something else with their money. The crypto community is the same way. It isn’t unusual for people to claim they are “holding” and “investing in the movement.” Some have even gone so far as to speculate that crypto will be able to fund its own infrastructure. It’s no surprise then that the crypto hype is attracting a lot of attention from people who would have never otherwise paid attention to tech. People are also behaving like children and behaving recklessly, as if their fortunes are tied to the potential of this technology.
2. The Desire for Instant Gratification
Many promoters use the word “blockchain” quite fast, like they were hoping you would understand what it meant immediately. They often don’t even bother to define it in any way—just hop right into the spotlight (pardon the pun). In other cases, they make their pitch by explaining how they can help you get rich quickly by giving a gift (sometimes incredibly generous. Yes, people are giving others money in order to make them better off.) In addition to being hard to grasp and difficult to understand, cryptocurrencies are also meant to be used as a means of payment. It makes no sense then for promoters to claim they will pay your tuition or loan you money if you just send them some bitcoin. It’s because it’s likely that they don’t even own any of it—they only know the word crypto because they’ve seen others talk about it. Click here.
3. The Fear of Missing Out (FOMO)
It seems that almost everybody wants to give cryptocurrencies a try at once. Naturally, people find it all the more important to act fast since they might not be able to when everyone else is. The problem with getting in on the ground floor of anything is that you don’t know whether you are committing yourself to something great or wasting money on a passing fad. People have been known to trade their rent money for a cryptocurrency that’s already plunging in value. Because there is so much hype, no one wants to risk waiting too long and missing out on the latest craze.
4. The Bubble
Just like in any other economic bubble, people are treating what’s happening in crypto as a commodity, which is giving birth to some new kinds of speculation. One example is the cryptocurrency market capitalization pyramid, which shows how investors tend to overreact to news. The media themselves seem to be just as guilty of this—remember that huge amount of coverage we were given about bitcoin back in 2013? It came so suddenly and soon people realized their money wasn’t even safe in their investment portfolios related to seo.
5. The Inevitable Crash
The best way for the crypto industry to gain a foothold (and avoid being abandoned) is by teaching people how it functions and not just what it’s used for. Instead of encouraging people to buy and hold onto crypto, it would be far better to teach them how they can use it as a means of payment. The prices themselves should reflect that and show stability. Yet even as the industry shows some promise and legitimacy, it’s still being pushed along by promoters who are manipulating the public for a quick buck. Eventually, this will lead to a crash—in fact, we may already be seeing the signs of one.
6. The Redundancy of It All
In the same way that crony capitalism has become common in politics, crypto shows that even some of the most essential business practices have been corrupted. For example, we have companies making millions for promoting ICO, yet the technology itself does not provide the same convenience. For instance, you don’t have to pay fees to receive your cryptocurrency. I guess that’s why ICOs don’t last forever—they aren’t truly decentralized. Most people haven’t realized that they are just glorified advertisements and buying into them is basically supporting a lie.
Crypto promoters are not only fueling a bubble but also sending mixed signals about what this industry is really about. It may help their business in the short term but no good will come in the long run if it does not change how crypto is being promoted.