How crypto companies can build trust with consumers

The number of UK adults who hold crypto assets has risen to an estimated 2.3 million, according to the latest research by the FCA. A surefire sign that, lockdown or not, the dizzying ascent of cryptocurrencies is not going anywhere. 

In a year where headlines, tweets, memes and endorsements have sent crypto asset prices soaring, it’s clear that the dynamics of the crypto-marketplace have captured the popular imagination in a way Satoshi Nakamoto’s initial blueprint may have only dreamed of. While this is nothing short of substantial, there is one pressing question to address: has credibility in the cryptocurrency marketplace finally arrived? In other words, is cryptocurrency here to stay? 

Given that as of April 2021, cryptocurrencies now have a market capitalisation in excess of $2trn (£1.4trn), few major market players can afford to ignore the opportunity. The most prestigious university endowments, such as those affiliated with Stanford, Yale, and MIT, have invested, in tandem with substantial financial institutions, including Fidelity Investments and Goldman Sachs, showing a heightened interest. Time will tell whether crypto will become a staple of institutional portfolios, but as retail traders come to make up a significant percentage of the market, in-demand crypto exchanges now have a much larger responsibility to establish their footprint in the industry.

When the head of the Bank of England and the FCA warns people that they should treat cryptocurrencies as high-risk investments, crypto-exchanges have the difficult task of building trust with the wider public through transparent communication with their stakeholders. 

Establish the position of your platform

With thousands of cryptocurrency exchanges now available to choose from, the significance of your position in the market cannot be understated. A consistent stream of proof points around the credibility of your business offering, mission and values, combine to generate positive sentiment around the platform and establish its presence not only within the sector, but to the audiences you want to reach.

The distribution of key company news can help build and sustain momentum around the suitability of your exchange compared to others. Whether that be an announcement of strategic partnerships or sponsorships, key company hires or innovations of the platform, the time to establish your business’s journey is now. This way, the core messages you wish to convey about the business remain in the consciousness of the media and by proxy, deepen consumer understanding of the brand. 

Build a reputation as a market commentators

In spite of the surge of enthusiasm and interest in crypto assets, there is still a lot to be said in how it defies conventional market analysis. The aforementioned FCA research also found that while the sector’s profile had increased, “the overall level of understanding has fallen.” When looking at recent market events, such as the meme-inspired Dogecoin, the masses are drawn to assets in a way unseen before, with FOMO [fear of missing out] now factoring into financial decisions. This presents a unique opportunity to promote and leverage the expertise of those in your business to bring sense to the market.   

A front-foot approach to market commentary by jumping on to topical news hooks, of which there are many in today’s landscape, will position the exchange as a broker in tune with the market’s journey. By bringing to light the expertise of key spokespeople from your exchange forward to not only speak on trends and fluctuations but also to contextualise the market will inevitably bolster credibility.

The gap to be speaking on trends with unique market insight is there for the taking and in doing so, there is room to be providing advice to those who are interested in the markets you service. Over time, this type of commentary becomes easier and as your brand and spokespeople become more recognised, the media will eventually start to come to you more proactively as a trusted resource. 

Get into the storytelling game

The number of people turning their hand to trading is significant, but with many novices coming into the market, crypto exchanges should strive to educate and motivate traders to develop the right skills and mindset that will enable them to grow. Demonstrate your exchange’s knowledge by creating a bespoke content plan to establish yourself as the leading source of cutting-edge insights regarding crypto trading strategies and education. 

By publishing a thought-provoking and insightful blend of editorial professional insights around the topic of trading and how best to develop your skills, there is a chance to cultivate greater trust with your customers beyond their activity on the platform. It also presents a chance to introduce new terminology, new ideologies, new digital currencies, and new ways for people to conceptualize their place in the market. This is particularly important in also showcasing your status as a platform aiming to create accountability when misinformation is spread via other channels.

Don’t get left behind

Whilst the conversations remain around the integrity of the marketplace, safety, and regulation, there is a much quicker debate steaming up that retail and institutional investors are paying attention to. If crypto assets and subsequently the exchanges that house them are to have a high probability of succeeding their negative reputation, then a proactive and tactical communications strategy is paramount. Crypto exchanges that stay quiet in the mainstream conversation around the market will soon find that they won’t only lose the race, but don’t stand a chance to begin with.

If you would like to find out more about how PR can help build trust with consumers then please get in touch with us today.

Get in touch with the team