The initial coin offering (ICO) space is exploding with opportunities, as cryptocurrency becomes poised to permanently disrupt traditional systems of the financial world. A quick scan of the latest headlines pertaining to ICOs reveals just how much finance is flowing in, as millions of dollars are quickly raised by startups planning to revolutionize entire industries with blockchain technology.
Unfortunately, where there is lots of capital, there are plenty of scammers trying to purloin their share. And the faster a sector grows, the easier it becomes for them to do so, as purveyors of fraud quickly learn how to take advantage of newcomers’ knowledge gaps. In the cryptocurrency marketing world, a fool and his bitcoin are soon parted.
- Social Media Influencer scams
A quick search can yield a plethora of individuals offering social media promotion via their “thousands and thousands” of crypto followers. While the thought of this instant exposure and validation may sound attractive, the truth is that it’s usually nothing more than a con-game without any real benefit to a marketer. This is because their offer of multiple tweets, and re-tweets are to the very fake followers they paid $30 for.
To ensure you’re not paying to attract bots and zombie accounts try using an account auditing service like twitteraudit or FollowerCheck. (Note: make sure to check when the audit report was created) If their followers are more than 30% fake, you are throwing money away.
- Pay to Play Press Releases and Article Submission
There are plenty of sites out there that offer paid press releases and articles that may seemingly enhance an ICO’s profile. They try to appear legitimate and industry-focused, but in general, the sites where your content will appear tend to have very little or no traffic, making them a tremendous waste of your promotional resources. In the entire industry perhaps twelve niche sites exist that have the right kind of traffic. The rest do not. End point.
Before you agree to invest in any sort of paid tactics of this nature, do your homework. Even checking the Alexa rankings of the sites where the release/article will go live is a great measure to protect yourself. Anything that is not ranked in the top 150,000 sites is not worth your time or marketing money. And never…ever… buy banner Ads from anyone, unless you take a time machine to 2004.
- Pay to Play Articles in Major Publications
You should always be sure to avoid cash for contributor coverage schemes (Pay for play articles) as an absolute rule of thumb. Not only are these usually a scam that won’t result in anything of value, but they can also lead to legal issues. If a writer/consultant/agency promises to get an article about your ICO published on a well-known site by paying the journalist, kindly decline and seek out organic PR instead.
4. Scam Agencies
Be wary of marketing and public relations firms that state they have represented dozens upon dozens of ICOs. First of all, the development of this space is still relatively new, so the veracity of that claim is unlikely. But even if it is true, given the intense amount of time and resources it takes to properly engage a campaign to promote an initial coin offering, that calls the quality of these efforts into question. Equal due diligence should be given to agencies that claim only focus on crypto. Most of the time, they are just as new to marketing as you are and don’t have the years and years of expertise far more qualified firms would.
If you really want to be sure you’re hiring an effective marketing organization, be sure to dig into the experiences they claim to have. It’s possible that much of what they have done involves one-off engagements rather than strategic partnerships with proven results. And when it comes to the intricacies of promoting an ICO, you’re most certainly going to want the latter.
The initial coin offering marketing world can seem like the wild, wild west in terms of unethical parties willing to go lawless to take advantage of all the money waiting to be made. By entering this space with your eyes wide open, while paying close attention to what’s really being offered, you can ensure you’re promoting your offer the right way with the right people.