BlockchainMarketing

Blockchain Marketing Basics: How You Should Promote Your Blockchain Project`

Blockchain is a vast and fast-evolving technology that requires a substantial amount of investment to undertake. According to Statista, investments in blockchain solutions are expected to hit 19 billion dollars in 2024. Therefore, it can be a hassle for startups and other companies to get their projects off the ground. 

Blockchain Marketing Basics: How You Should Promote Your Blockchain Project
A chart showing global investments in blockchain and cryptocurrency in 2022

This article will help you understand the complexities of the blockchain market and guide you as you launch a successful marketing campaign for your blockchain projects.

What is Blockchain?

Blockchain technology is a digital ledger where transactions are recorded in duplicates and distributed across the whole network of computers on the blockchain. A blockchain is a database that stores information in groups, referred to as blocks. These blocks have a specific storage capacity. When a block’s storage capacity is exhausted, it is closed and linked to another block, forming a data chain. The blocks contain several transactions recorded on public ledgers for all blockchain participants to verify. 

A blockchain also is a decentralized distributed ledger managed by multiple participants on the blockchain network. The Distributed Ledger Technology (DLT) powers the peer-to-peer network. The technology makes it nearly impossible to hack the system because you must successfully change the data on all the blocks in the network. Once a block is tampered with, all the computers in the network will be aware of the threat.

What is Blockchain Marketing?

Blockchain marketing relates to the processes and activities involved in promoting awareness and building positive perceptions about a blockchain project. It is the process of informing people about the blockchain project and its idea. It also involves convincing people to trust the developers enough to buy what they are offering. 

Some fundraising methods are employed during the marketing period, especially by startup companies. There are three primary fundraising methods: Initial Coin Offering (ICO), Initial Exchange Offering (IEO), and Security Token Offering (STO). 

  • Initial Coin Offering (ICO): An ICO works by issuing crypto coins against investments. The coins are sold directly to investors at discounted prices. If they rise in value from the initial launching price, the investors profit, just like stock trading. Some fundraising programs carried out during ICO include airdrops, public sales, and private sales.

A white paper, product website, and a backup team to handle the technicalities of the project are all that are required to launch an ICO. Startup companies and investors can easily undertake this method because of its low-launching cost. However, you should be cautious about ICOs as they are prone to fraud.

  • Initial Exchange Offering (IEO): An Initial Exchange Offering is conducted on a cryptocurrency exchange platform. The cryptocurrency exchange administers the IEO on behalf of the startup that seeks to raise funds with its newly issued tokens. IEO tokens are sold only to members of the exchange. In an IEO, members can transfer funds directly to their accounts without the need for a smart contract. 

IEOs are highly regulated, thus providing a safe platform for transactions and protecting investors from scams. But, they are a high-cost form of fundraising, and the system is difficult to set up. An IEO also has low liquidity compared to an ICO and an STO.

  • Security Token Offering (STO): In a Security Token Offering, a cryptocurrency is issued to an investor and is used to represent the investor’s investment. In STO, a security token represents an investment contract into an underlying investment asset, such as stocks, bonds, funds, and Real Estate Investment Trusts (REIT). 

The STO is a trusted investment tool because it deals with tangible assets and complies with government rules. Hence it is preferred for long-term investments. However, it incurs high fundraising costs and is more complex to undertake. Also, it has low liquidity as a result of stringent government regulations.

Marketing Strategies for Blockchain Projects

  • Clearly define your unique value proposition: There are thousands of blockchain projects in the crypto space. Your blockchain project must solve a problem or improve on an existing solution to stand out from the competition. An innovative proposition makes your blockchain project easy to identify.
  • Know the industry your blockchain project targets: Blockchain technology applies in various sectors, such as the automobile industry, banking, and financial services, government, healthcare, insurance, media and entertainment, retail and consumer goods, and the telecommunications industry. Therefore, you must know what industries can use your blockchain solution. 
  • Build an excellent website: Before launching your blockchain marketing campaign, you must develop a good website. You should regularly update your website with information about your blockchain project, educational content, and necessary legal documents (e.g., white papers). 

Having a good website makes the blockchain project look professional.

  • Fully utilize content marketing: Create engaging content about your blockchain projects and blockchain technology at large. These contents could be in the form of articles, blog posts, e-books, and other materials. 

Ensure the information you release to the public from your platforms is verified so that people trust your platform. Also, use Search Engine Optimization (SEO) strategies to ensure that you create content that your audience can easily access.

  • Build a community or following on various social media and messaging platforms: If people don’t buy into the idea behind your blockchain project, what good is it? People need to be interested in your blockchain project to be successful. 

Attract people to your blockchain project by creating a buzz around it. To do this, you can organize challenges that get people to talk about your blockchain project and make engaging content on your social media platforms that bring people to like and follow your page. 

  • Use email marketing: Email marketing sends customized messages to individuals. You can use it to inform your audience of airdrops, bounties, and whitepaper downloads. Grow your email list to reach a wide range of audiences.
  • Use case studies to showcase your project’s viability: Case studies show the application of your blockchain project in real-life scenarios. Document case studies as soon as they happen in written or video format and post on your platforms as quickly as possible. 

These case studies should clearly state how your blockchain project solved a problem for a customer. Prospects are more motivated by case studies than whitepapers and other technical explanations.

  • Use referral programs and affiliate marketing: People are more likely to buy into an idea shared by a friend, peer, or relative. Leverage the power of peer-to-peer marketing. You can also employ affiliate marketers and reward people for promoting your blockchain project.
  • Use Airdrops and Tokens: Airdrops and Tokens can attract many people to your blockchain project. It also helps improve the liquidity of a blockchain project.

You can distribute airdrops to people after they complete tasks.

Major Social Media Platforms You Should Use For Your Blockchain Marketing Campaign:

  • Facebook: Over 80% of the Internet is active on Facebook, with about 1.73 billion daily active users, according to Sprout Social and Statista. Facebook is a robust social media platform to use for your blockchain marketing campaign if you want to reach a wide range of audiences.  
  • BitcoinTalk: BitcoinTalk was the first bitcoin community that ever launched. It was created in 2009 by Satoshi Nakamoto. Although BitcoinTalk is not as active as it used to be, it still draws millions of viewers per year. You can use it to introduce your blockchain project. However, make sure to read and abide by the platform’s policies.
  • Quora: This is the most prominent question-and-answer (Q&A) platform globally. Quora can quickly generate traffic to your website by answering popularly asked questions. 
  • Reddit: Reddit is a vast social media platform containing communities known as subreddits. These communities comprise people who are interested in a particular topic. You can find several active cryptocurrency communities with over a million members on Reddit. You can also drive massive traffic to your platforms if you position your blockchain project as an authority on these cryptocurrency communities.
  • Steemit: Steemit is the largest and most popular decentralized social media platform globally. Crypto fanatics mainly use Steemit; hence it is an important platform to promote your blockchain project. 

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