When we talk about the role and importance of cryptocurrencies from a marketing perspective they are seen as a very notable paradigm shift in branding.
There is a whole conversation happening over the future of cryptocurrencies everyone is concern about where it is leading to, whether or not they are legitimate, sustainable and a well-judged investment all of this is hanging around with a blocked-out conversation on the side about the interest of those in marketing. They are Bitcoin (BTC), Ether (ETH), Cardano’s ADA, Litecoin (LTC), XRP, Dogecoin (DOGE) with other crypto brands in line.
So, the whole situation comes down to a single question how are these brands created and what role do they play in each coin’s adoption? Another question is about the role of branding, how does it in totality contributes or diminishes the legitimacy of cryptocurrency as it tries to approach an increased level of mainstream acceptance and usage? To find answers for that we can start by approaching David Oglivy’s method he is a British advertising tycoon also known as the “Father of Advertising”. According to him the definition of a brand is “The intangible sum of a product’s attributes.” These basically means an identity, voice, empathy, value proposition and consistency in standing by and carrying out the promises made. At the end all these factors together constitute the heart of the product or service they portray trust, inclination and loyalty.
There is a different line of argument which says fiat currencies are probably brands which their issuing countries put a lot of work in to built value and confidence in them. Since, there isn’t much of a competition in their native countries the given commodity identities such as dollar, pound, euro, yuan etc. With no effort put forward by their respective government (the “brand owner”) or basically any other power in existence its difficult to change how the currency is recognized or used, it’s difficult to give them that importance. When we take a look at other examples on finance, stocks are basically a manner through which one can own the brands that issue them. There are mutual funds which are constituted as the crown of the brands that handle them, there have been examples where funds such as Fidelity’s Magellan Fund and Vangaurd’s Wellesley income fund have turned into important brands. Other commodities such as gold, silver and copper are also prominent commodities.
All of this brings our concentration back to cryptocurrencies, let’s start with the importance of Bitcoin it has many uses for currency such as the hero’s epic narrative in the form of Satoshi Nakamoto’s pseudonymous pursuit following a decentralized currency coming to an end in the now-famous 2008 white paper, it has a understandable and constantly changing identity with an idea of being the founding father of digital currency another benefit of Bitcoins are it being known as the “first mover” which provides them the first hand advantage over all other brands including cryptocurrencies.
There are two outstanding players in this game one is Bitcoin and other is Ether with many other impending long lists of “challenger brands” found in the form of altcoins. These challenger brands have separate selling propositions with different names like Avalanche, Sushi and Chiliz identified as a means of helping investors or consumers to recall them. Following the whole whirl around Dogecoin and other name such as memecoins which according to Crypto Dictionary is known as a “Joke that turns into crypto coin” this shows how pop culture which in other words means marketing has a solid grip on markets. For people who belong to an older generation this might not be something they approve of but for younger generations especially investors all of this seems more profitable with placing Dogecoin and others as a consumer currency. The most crucial one is a rapidly-growing marketplace for cryptocurrencies in which technologies compete for the sake of financial engagement but also social currency which is deemed as a share of voice on social media within the cryptocurrency community.
All of this leads to another question, if decentralization is core to the total idea of cryptocurrency who is dealing with each of these brands? And if trust is the main aspect of brand health then how does a trustless technology fit in? cryptocurrencies are termed as the first true user-generated brand solicited
By marketing organizations which could provide voice for customers unlike user-generated brands which is highly unsolicited. Without a central owner or even a brand manager these brands and products are made by project funders, user communities, investors, miners etc. There are many foundations for crypto projects or Decentralized autonomous organization (DAO), ThinkBitcoin.org, The Ethereum Foundation etc. These foundations release white papers as de facto advertisements and help in making capital through crowdfunding using the first coin offerings as their currency. According to Ark invest Bitcoin is “the purest form of money ever created” perhaps it will also be the purest form of marketing ever created.