🫡 The Tenacity and Worth of Crypto's Pioneers

Why Businesses and Marketing Teams Should Target the $70 Billion Early-Adopters of Crypto

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The news about the crypto industry couldn't be bleaker. Binance and Coinbase are facing fresh lawsuits, and the SEC has deemed 67 cryptocurrencies as securities.

As expected, many alt-coins plummeted by 20% in recent days, as consumers absorbed the negative updates. However, what's intriguing is that Bitcoin and Ethereum (currently not categorized as securities) only experienced a modest 3% drop, displaying resilience.

But if you pause and contemplate, what truly surprises is that despite the onslaught of adverse headlines, stringent regulations imposed by the SEC, and wild price fluctuations, the community of crypto enthusiasts continues to expand year after year.

A recent piece in the WSJ, along with a report by Pew, sheds light on these trends and paints a portrait of the crypto user base that brands would be wise to acknowledge.

Explosive Crypto Growth Mirrors Technology Adoption

Around 30 million American adults have embraced crypto. Pew's study reveals that the crypto user base in the nation surged from 2% of the population in 2018 to 17% in April 2023. This remarkable surge signifies a profound shift in how individuals perceive and engage with digital assets, aligning perfectly with the technology adoption curve.

The data seems to indicate that crypto has attracted most early adopters. Yet, what does it require for crypto to traverse the gap and enter the mainstream market?

While more user-friendly blockchain infrastructure and applications will be needed for mass adoption, I propose that regulation might hold part of the solution. As crypto gains legitimacy through regulation, an influx of users and capital will follow suit. Pew's findings reinforce this notion, with 75% of Americans familiar with cryptocurrencies expressing doubts about their security and reliability. The question isn't whether crypto will achieve mainstream status, but rather when it will happen and what toll it might take on existing users. And regulation could come sooner than some might think, as the House has a bill on the table that would disarm the aggressive SEC.

Demographics of Crypto Investors: A Call to Action for Businesses and Marketers

A glance at the demographics of crypto investors reveals a notable trend—males between 18 and 40 years old represent a substantial portion of this user base. Research uncovered that nearly 40% of men within this age range claimed ownership of crypto, while only 16% of women did the same. Furthermore, among men aged 41 to 60, 17% possessed crypto, while a mere 9% of women in that age group reported such ownership.

This group comprises individuals of higher income and education, a segment that businesses simply cannot afford to overlook. There are 420 million crypto users worldwide with a market cap around $1 trillion. That values the US crypto user base around $70 billion. After all, early adopters often serve as the vanguards of new trends.

Within this group reside individuals of higher income and education—a segment that businesses simply cannot afford to overlook. The worldwide count of crypto users stands at a staggering 420 million, contributing to a market capitalization of approximately $1 trillion. Thus, the valuation of the United States' crypto user base alone ascends to a remarkable $70 billion. Indeed, these early adopters typically stand at the forefront of novel movements.

Hence, it is wise for businesses and marketers to devise a Web 3.0 strategy, despite the industry's challenges. But how should companies approach Web 3.0?

I caution against accepting crypto payments while the looming presence of SEC regulation persists. However, there exist numerous other tactics through which companies can engage with this valuable audience.

Thought-starters:

1. Advertise in crypto media.

2. Collaborate with crypto influencers to co-create content.

3. Harness the power of NFTs to foster brand ownership.

4. Enable digital wallet connections on company websites.

To date, very few brands have targeted crypto’s early adopters, which creates tremendous whitespace for those ready to step into the new world of Web 3.0.

In Summary

The crypto industry has demonstrated remarkable resilience and growth, even amidst harsh regulation and negative press—a trait of loyalty that all brands would admire. The expanding user base in the United States, particularly among males aged 18-40, attests to the enduring allure of cryptocurrencies.

Brands targeting this demographic must grasp the importance of adopting a crypto and blockchain strategy to maintain relevance and seize the opportunities presented by this flourishing market. As cryptocurrencies continue to evolve and gain widespread acceptance, their impact on various industries and sectors will inevitably soar. It is therefore essential for businesses to remain ahead of the curve, embracing the potential of crypto and blockchain technologies.

And that’s all for today, friends.

See you next week.

Jonathan

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