As the crypto market enters a new phase, with increasing investment and liquidity, there is a key lesson to be learned from previous market cycles: the importance of branding. One example is FTX, which spent a staggering $375 million on multi-year sports sponsorships and advertising campaigns to build its name recognition. However, this significant investment only resulted in awareness, rather than a solid brand association or understanding among the general public.
The issue with this approach is that merely creating name recognition does not consider the majority of the population who have no intention of using a cryptocurrency exchange soon. Instead, the focus should be on building a brand strategy that ensures a unique selling point and establishes a connection with potential customers.
Brand awareness is simply the first step in a series of conversion steps when it comes to generating return on investment. The real substance is found in distinguishing your brand from its competitors. For cryptocurrencies, this goes beyond technical aspects such as speed, scalability, and privacy. Instead, the focus should be on the brand’s distinct purpose and relevance for the target audience.
Crypto exchanges should take this as a starting point to reflect on their own branding strategies. A successful brand is built upon a distinctive, memorable, credible, and relevant promise, which cannot be conveyed using just a name or a logo. Establishing this bond with customers can help build trust and loyalty, which becomes crucial during bearish market phases where growth slows down.
To ensure a strong brand identity, companies should ask themselves defining questions about their purpose and how they distinguish themselves from competitors. These answers will help convey a unique and meaningful message that resonates with potential customers.
As the crypto market cautiously enters a new bullish period, it is essential to remember the lasting value of branding efforts that go beyond mere awareness and hype. Building a strong brand identity can lead to customer loyalty, trust, and continued success – even during challenging market phases.
Source: Cointelegraph
