The bear market is in full force. Bitcoin fell 63%, Ether lost 67%, and altcoins bled even more in 2022. Terra lost all of its value, Solana lost more than 90%, Cardano lost 80%, Etc.
According to Token Terminal, the number of active blockchain developers on major chains recently saw a sharp decline and fell below 2020 highs, which can be seen in the image below. Another sure sign of the bear being in control and hungry for more.
Running a solid crypto brand in a bear market is a challenge. Money and investors are leaving the sector, and scepticism abounds. Investors are hesitant to take risks and are likely to stick with established brands they trust–especially after the recent FTX scandal. And who could blame them?
As a result, crypto companies who want to stand a chance to make it through this crypto winter need to prepare for a possible ice age and, while doing so, need to build and maintain a strong brand to stand out in a crowded market. But even in an ice age, there is light because when the market is declining, fewer competitors are vying for attention from investors and community members.
These bearish times allow projects to stand out and increase visibility. Additionally, the marketing cost will likely be lower during a bear market, as demand for advertising and other marketing services is lower.
Companies will get more value for their marketing budget and can invest in high-impact activities that might be more expensive in a bull market. It’s essential to differentiate your project from competitors and provide value to your community because it can establish and set it apart from other projects.
What should be done to build a strong crypto brand in a bear market? Here are 6 key points to consider:
Focus on building trust
Trust is a crucial element of any successful brand, but in the crypto world, it’s the golden ticket. Investors want to know they can count on you, especially in a bear market. So, make sure to project an image of trustworthiness by being an open book about our operations and clearly communicating your business model. And let’s not forget about security measures; it’s a must-have for protecting our customer’s assets and data. After all, trust and security go hand in hand in the crypto world, and together they pave the way for success.
Emphasize your unique value proposition
In a bear market, investors are like detectives, searching for clues to believe in your company. And what’s a better indication than a unique value proposition? Show them what sets you apart from the competition. Is it your innovative technology? A dream team? A one-of-a-kind product offering?
Highlight your strengths and make it impossible for them to resist choosing your brand in a crowded market. After all, being unique is the ultimate selling point.
Build a robust online presence
First impressions are everything, and your online presence is also the way to keep your finger on the crypto pulse while keeping the conversation going with existing fans. A polished and informative website is like a tailored suit – it’ll show them you mean business. But why stop there?
Being active on social media is like showing off your charm and personality. It helps you connect with your audience and build a community of loyal followers who’ll be your personal PR team, spreading the word about your brand. So, ensure your online presence is on point and engaging; it’ll be the ultimate ace up your sleeve. According to the social sprout social index, 90% of consumers will buy from a brand they already follow-on social media, so this is not to be taken lightly.
Foster relationships with key influencers
Having friends in high places can pay off big time. By building relationships with key influencers such as well-known investors, industry experts, or respected media figures, you’ll get the stamp of approval and gain access to a whole new audience. Think of it like having a VIP pass to the exclusive crypto club, where one introduction can lead to an entire room full of potential investors and customers.
But it’s not just about rubbing elbows with the elite; it’s also about proving your worth. According to a 2020 survey by Influencer Marketing Hub, 91% of 4000 agencies, brands, and industry professionals believe influencer marketing to be an effective marketing strategy.
By getting these influential individuals to vouch for your brand, you’re also gaining the trust of their audience. So don’t underestimate the power of networking and influencer marketing.
Stay focused on your long-term goals
It’s easy to get caught up in short-term market fluctuations like a ship caught in a storm. But remember, having a long-term vision is like having a compass that guides you through the rough waters. By staying focused on your long-term goals, you’ll be able to navigate through the short-term noise and keep your brand on track.
Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals for your company will be like having a treasure map to your ultimate destination. By regularly reassessing your progress towards these objectives, you can make sure you’re on the right path and make any necessary adjustments along the way. A little planning goes a long way in crypto, and it’s a pivotal factor in reaching your end goal.
Be responsive to customer needs
In a bear market, it’s easy to hunker down and play it safe, but ignoring your customers is like turning a deaf ear to your best friends. Listening to their needs and responding to their concerns is more important than ever, like a lifeline in the stormy seas. It’s the key to building a solid and customer-centric brand that stands out.
Making changes to your product or service offering, offering additional support or resources, or simply being available to answer questions and address concerns are all ways to show that you are responsive to your customers’ needs. It’s like having a secret weapon; it shows them that you care and are paying attention.
This graphic emphasises the importance of being responsive to your customers and providing a positive customer experience. And in a bear market, maintaining strong customer relationships is even more crucial for your business success.
Conclusion
Building an excellent crypto brand in a bear market takes a combination of strategies, but let’s not fool ourselves, it’s not a walk in the park and takes effort and dedication.
However, sticking around for the long haul could be well worth the pay-out. Building relationships, creating valuable content, and providing value to your community can be the foundation for future growth and success, regardless of the market trend.
Investing in marketing during a bear market can position your project for success and give you an advantage when the market recovers, just like a wise investment. Remember, the crypto community looks for projects that don’t give up during a downturn.
