Crypto’s massive marketing efforts have attracted quite a few new investors

Suspension

Over the past year, crypto companies such as FTX, Coinbase, and Crypto.com have committed tens of millions of dollars to attract new customers. Crypto.com’s famous Matt Damon said, “Wealth favors the brave.” TV spot He also tried to get Americans to open their digital wallets.

Now a study has been returned on how well they worked, and experts say it’s an eye-opening study: It didn’t work at all. according to studyLed by the Pew Research Center.

The results, published Tuesday, are based on a preliminary survey in September. At the time, Pew Center researchers asked 10,371 Americans if they had “invested, traded, or used cryptocurrency.” About 16 percent of Americans said they did.

Last month, the nonprofit asked another sample group — a slightly smaller, 6,034 Americans — the same question. Once again, 16% said they have invested or traded in the altcoin.

The findings indicate that despite numerous campaigns by crypto interests, the vast majority of Americans remain immune to their sales pitch.

said Lee Rainey, director of Internet research and technology at the Pew Research Center, who led the study. “Attempts to bring new buyers into the market don’t seem to move the needle at all.”

The end of 2021 and the beginning of 2022 saw a flurry of hiring efforts as crypto firms tried to lure retail investors into the fold. The market’s long-term health largely depends on new players willing to sign up for exchanges and buy cryptocurrencies.

Several weeks after Damon’s commercial first appeared in October, Crypto.com announced the release of Naming Rights Deal Staples Center in Los Angeles. By February, the payment was fully effective. Three trading platforms – Crypto.com, FTX and Coinbase – all bought It was the time of the Super Bowl broadcast It is said to go for $6.5 million per 30 seconds.

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The ads were targeting a wide segment of Americans – FTX, for example, encourage The game’s nearly 100 million viewers shouldn’t be “like Larry,” referring to tech-skeptical superstar Larry David, and instead invest in cryptocurrency.

The results of the survey confirm the correctness of the criticisms of crypto-skeptics lacking intrinsic value and inappropriately relying on bringing in new investors to enrich the old ones.

Said Nicholas Weaver, a computer security expert from the University of California, Berkeley, who often raises both the financial and ethical case back investing in crypto. “Although there is a baby born every minute, it is still a limited group of suckers.”

study bio Notes That “this lack of sweeping change comes despite the strong interest in cryptocurrencies in the news.”

However, not all analysts endorsed the Pew Center’s findings. “I question the research,” said Edward Moya, chief market analyst at cryptocurrency research and trading firm. Oanda. “What I have seen over the past year is a very diverse group of people – lawyers, nurses, doctors, professors – showing a huge interest in cryptocurrency, especially at the beginning of 2022, when many of them first bought it.”

Crypto enthusiasts say that studies can underrepresent crypto investors, because not everyone wants to tell the questioner who invested and because studies do not look for pockets in which they are likely to invest. Rainey said the Pew Center has taken drastic steps to achieve proportional representation across different ethnic, sexual and economic groups.

Industry leaders are warning that it may be difficult to find new groups of investors in the coming months. In an earnings call this month, publicly traded cryptocurrency exchange Coinbase, which expires in 2021 with… 11.4 million monthly active users, She expects to end the year between 7 million and 9 million monthly active users.

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Moya said that even if retail investors retracted in the wake of the recent crash, the cryptocurrency markets could be fueled by institutional investors, who are likely to To buy after an accident.

Pew’s study also examined demographic data and found that it hasn’t changed much over the past year, either. As in September, adults over 50 were only a quarter more likely to invest in crypto than adults under 30, while men were 2.5 times more likely than women to put money into crypto.

The study also found that not all of the marketing campaigns did much to increase public awareness of cryptocurrencies. last september, the percentage of those who said they had heard “nothing at all” about cryptocurrency was 14 percent. By this summer, after all the media attention, the ranks of crypto ignorant people had shrunk by just one percentage point, to 13 percent.

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