Marketing crypto projects is one of the most challenging tasks of every developer or project founder. However, in some cases, the choice of marketing may be completely counterproductive. One such marketing stunt was the Matt Damon crypto.com advertisement.
The advert video released in late 2021 met severe social media backlash. After his video posting, social media users went in hard on Matt. Some mentioned that Matt is comparing himself to the bright minds of Science but is merely a con artist. Some investors considered the videos as a crypto scam.
The question that remains is, why did the video get so much hate? How can crypto projects choose the right influencers for marketing? This guide looks into why Matt Damon’s video is indeed an embarrassing cash grab.
Matt Damon’s video got a lot of criticism on social media networks. The minute-long crypto ad was about investing using Crypto.com. However, the video goes through some of the big moments in crypto history, showing how bravery led to big achievements.
It shows one of the Wright brothers in a plane. Later, you can see some astronauts taking brave acts of going to space. The video goes on to show some computer-generated images of outer space.
At the same time, Matt Damon encourages people to be brave and go into crypto. Crypto.com is a famous crypto exchange that sponsored the promotional video. The whole idea is investing in Crypto.com. The video ends with Matt Damon saying, Fortune favors the brave.
Generally, Damon refers to investing in crypto as one of the most authentic acts of bravery. People termed this promotional campaign as a scam and an embarrassing cash grab. So, why did people criticize the video? Here are the reasons:
Of course, using celebrities in promotions is among the most popular marketing methods. The use of celebrities can attract the masses to the project.
In the crypto space, there are lots of celebrities involved in marketing. The celebrities involved in marketing crypto include Kim Kardashian, Tom Brady, and Busta Rhymes. So, it’s common for stars to take part in crypto marketing.
But, the primary intent of celebrities in those promotions is to make an income. Celebs are less concerned about whether crypto adds value and more concerned with getting a paycheck. That is the case with Matt Damon’s advertisement. He did it for money and not because of his love for crypto.
Another reason why this entire video and promotion seems like just a cash grab is its message. Matt Damon is tricking investors into thinking that not investing in crypto will cost them. He is playing with investors FOMO to trick them into investing in crypto.
Influencers have large fan bases thus can convince large crowds and increase web visits. Of course, Crypto.com Matt Damon because of the social media influence.
In the case of Matt Damon, the project chose an influencer who does not have any real crypto investments. Matt Damon was involved in this project but is not involved in crypto. Thus, he cannot convince people to invest if he is not interested in the project or crypto himself.
Viral marketing involves spreading information about crypto by sending it viral. It could also involve the creation of Ads and using campaigns to send them completely viral. In the case of Matt Damon, it’s a combination of influencer(Matt Damon) and viral marketing.
When using either influencer or viral marketing, crypto projects should consider the following;
The choice of crypto influencers is a vital aspect of marketing. Crypto projects should look for an influencer who is genuinely interested in crypto. Identify the specific social media celebrities who are vocal on crypto.
A crypto promotional video will make more sense if the participants are real crypto users. The moment they involve themselves in the project, investors can trust them more.
Another aspect lacking in the Matt Damon promotional video is educational content. While the video was unique, it does not state what crypto is and its benefits. Crypto is a relatively new concept. Hence education should be an essential part of marketing.
When creating a crypto promotional video, it’s important to consider the new investors. Make sure that your video educates them on crypto. The more people understand what crypto is, the better the adoption.
This guide has been exploring the idea of crypto marketing, especially focusing on Matt Damon’s crypto viral Ad. The video received a lot of social media criticism and is indeed a cash grab.
Of course, using influencers in marketing remains a highly effective promotion technique. But, how can you make sure that your promotions are not a cash grab? By using marketing professionals.
Cryptovirally is a network designed to help in all your crypto promotional works. It combines SEO, social media, viral marketing, community management, and other highly effective marketing styles. On top of that, Crypto Virally offers highly affordable services.
A much-anticipated update to Facebook’s ad policy recently came into effect, changing the social media giant’s guidelines on the management of crypto-related advertisements on its platform. In a blog post, the company, now called Meta, said it had decided to increase the number of regulatory licenses it was acceptable for companies to advertise on its platform, from a paltry 3 to 27. This means that it will now be much easier for blockchains, cryptocurrencies, and assorted decentralized finance (DeFi) projects to run Facebook ads.
The decision by Facebook to change its stance on cryptocurrency marketing was reached after the company acknowledged the growth and development of the crypto space. Facebook praised governments around the world for their efforts to regulate and streamline the crypto industry. These efforts, Facebook believed, had led to the maturity and stability of cryptocurrencies in the last few years.
This stability and maturity being witnessed in the crypto space that Facebook believes will help it make more transparent and equitable policies regarding cryptocurrency marketing on its platform.
In 2018, Facebook decided to prohibit ads promoting financial products associated with deceptive or misleading practices. These restrictions mostly affected crypto start-ups, initial coin offerings (ICO), and binary options, all of which Facebook felt at the time were being used by bad-faith actors to swindle the public.
A study carried out by a New York-based ICO advisory company, Satis Group LLC, indicated that up to 80% of all initial coin offerings in 2018 were scams. According to the study, only a paltry 8% of ICOs floated that year reached the trading stage on various virtual currency exchanges. Of that 8%, 4.4% were reported as dwindling projects, while only 3.6% were considered promising or unequivocally successful.
The unregulated and virtually anonymous nature of crypto makes it a constant target for scams ranging from fraud to hacking, digital theft, and phishing. In the first two months of 2018 alone, it was reported that investors lost over $1.3 billion worth of crypto to scammers and fraudsters.
In June 2018, Facebook made slight changes to its ad policy that allowed advertisements from businesses that had received prior written approval. Then in 2019, the company scaled back the policy even further and allowed more companies working on crypto and blockchain technology to promote their projects on the platform. Industry observers believe that taking a phased approach to allowing crypto marketing on its forum will give Facebook more time to examine the crypto industry and to better understand its nuances.
Responding to questions about the lifting of the ban, a Facebook spokeswoman said, “While we loosened the policy this summer, it remains restrictive.” She further added, “We will continue to listen to feedback, look at how well this policy works, and continue to study this technology so that, if necessary, we can revise it over time.”
The social media platform’s move to allow more crypto ads on its network came around the same time it was ramping up efforts to build its own cryptocurrency. The token, then known as Libra, was intended to be a universal currency anchored to multiple sovereign fiat currencies such as the dollar and the euro.
However, Facebook’s cryptocurrency project came under strong criticism from fiscal regulators around the world, who feared the currency could threaten global monetary stability and enable money laundering. This backlash led some of the project’s strongest backers, like MasterCard, Visa, and Stripe, to walk away.
Despite all that, Facebook did not pull the plug on its crypto dream but instead decided to rebrand it and develop it in a more low-key manner. The project, now called Diem, is set to be rolled out later this year in a small-scale pilot focusing on microtransactions between individual consumers.
Speaking of the positive effects of lifting the crypto ads restrictions, former Facebook employee and current CEO of Retina AI, Emad Hasan, said, “These companies had been in a spot where they couldn’t advertise on Facebook. They couldn’t drive people to convert fiat currency into cryptocurrency. This will enable the average day-to-day person to do this.”
Initial coin offerings are still not allowed to advertise on the social media platform, but it is hoped that further development in the crypto space aimed at making crowdfunding more secure from scams and rug pulls, may sway Facebook’s attitude towards them. In addition to that, Facebook’s experience with its own digital currency may also help shape its policy regarding crypto restrictions on its platform.
In August last year, Google Ads also changed its financial products and services policy that previously curtailed crypto ads on its platform. To reduce misleading advertisements and eliminate blatant crypto scams, the search engine giant laid out a raft of requirements that advertisers had to meet to run ads on Google.
These requirements include registering with either the U.S. Financial Crimes Enforcement Network (FinCEN) or a federal or state-chartered banking entity and complying with the legal requirements of the jurisdiction in which a company is domiciled, as well as Google’s advertising policies.
While businesses like crypto exchanges and crypto wallets can now advertise on Google, the tech giant’s new policy still imposes an overarching ban on most crypto-related products and services, including initial coin offerings and decentralized finance protocols. Additionally, the partial lifting of Google’s ban on crypto ads only applies to companies based in the United States. The rest of the world still has a while to wait.
Facebook’s decision to lift crypto restrictions on its platform will be hugely beneficial to blockchain start-ups that could not previously access the social media’s large and receptive constituency. Crypto startups may have moved to more crypto-friendly social platforms to promote their projects, but Facebook’s reported 3 billion active users every month is a potentially game-changing number for prospective crypto projects.
When Facebook changed its name to Meta, it signified a move towards the creation of an immersive new social space that could have deep compatibility with blockchain technology. As such, the company cannot afford to prolong its adversarial relationship with crypto developers like Bloom, whose products could potentially play significant roles in Facebook’s upcoming metaverse.
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