Social media influencers have the power to make or break a product or brand.
From Kendall Jenner promoting the ill-fated Fyre Festival to A-List celebrities like Eminem sporting Bored Ape NFT profile pictures on Twitter, the power of celebrities on social media cannot be understated.
Whether a product is good or bad, when it is advertised by an online celebrity, its value and speculative audience grow exponentially.
As such, it is no surprise that many crypto projects heavily utilise influencer marketing of their products and projects, with the knowledge that these influencers could push their products to be the next big thing.
There are many pros to influencer marketing. With captive audiences and a wide sphere of influence, influencers are one of the most efficient ways to get a product out to the right people.
However, when it comes to crypto, this aspect is especially important.
Cryptocurrency can be a tricky concept to fully wrap your head around for those inexperienced in the space.
In advertising, this can result in a myriad of consequences, from advertisers mishandling information to giving inaccurate information on a project, to real-world posters and adverts being unable to reach the target audience.
This is why crypto influencers are essential.
When an influencer understands crypto, they can understand why an upcoming project has potential, and the key selling points that specifically target crypto users.
With the knowledge and linguistics of crypto, these influencers are, on the surface, perfect vessels for targeted crypto advertising. These are people that are part of the community, and thus, can be trusted.
There are drawbacks to influencer advertising, however.
The most obvious may simply be that these individuals are influencers. Their whole lives are documented on social media, and as such are routinely scrutinised, with influencer scandals and drama being one of the cornerstones of online discourse.
Getting involved with an influencer, therefore, puts brands at risk if these influencers are shown to be in any way nefarious, especially with cryptocurrencies history with rug pulls, pump and dumps, and other similar activities.
It may be difficult to find a crypto influencer with a completely clean record away from these sorts of schemes, and if your brand is associated with one of them, the results could be devastating.
Furthermore, when an influencer routinely takes brand deals, their legitimacy may begin to be called into question. If all an influencer does is promote projects that they are paid to, how much can their suggestions be trusted?
The power of the individuals involved in influencer marketing is a double-edged sword.
With the inherent risks associated with influencer marketing, some crypto projects have decided to go against the grain, and reject this form of advertising.