Blockchain has blown up since 2021 with search volumes currently at over double their 2020 levels.
One of the major applications of blockchain development is decentralised finance (DeFi). The total value locked in decentralized finance has increased by over 4x since July 2020. It is an exciting space to be working in but success has not come easy for many Defi companies.
Marketing is important in building trust and a presence for DeFi brands. It is more important than ever for founders in DeFi startups to consult marketers and create strong strategies for building your brand’s presence. One of the main tools you will use in your strategy will be social media.
There is a high demand for crypto-related knowledge and brands in the crypto and blockchain space are racing to fill it.
As brands disseminate information on blockchain topics, the typical platforms for distribution have been YouTube, Twitter, Telegram, and Reddit. But there have also been other efforts on primary platforms. For example, Ripple, a large blockchain-based company, has hosted numerous webinars and shared a tonne of knowledge about all things blockchain - if you haven't already, go check them out.
You want to have a social media presence on one or more of these platforms because of the brand exposure you can get. According to the recent statistics for 2022, YouTube has 2.5 million users and Twitter has 206 million. You get access to massive audiences and when social media strategy is done right you can reach a lot of potential leads.
Your DeFi brand wants to use social media to encourage active trading, attract new users, offer trading incentives, and increase Total Value Locked (TVL) and Monthly Active Wallets.
A key step in creating your social media strategy will be establishing which goals take priority for your Defi brand and examining which are most achievable through social media.
Actively growing these KPIs can come through steps as simple as rewarding users with tokens in exchange for providing liquidity.
Side note: Offering free tokens may sound like a good idea, but they can work against your DeFi project's growth by lowering its overall value
Trading rewards programs can be a perfect way to combat this issue. Promoting trading rewards should be a key element of your social strategy.
Through trading rewards, you will typically reward users who trade the most volume in a specific timeframe, thus fueling the growth of your DeFi platform.
This strategy also aids in the development of liquidity and total value locked, which can demonstrate the growth of your DeFi platforms and foster trust and confidence among new users who are considering joining your platform.
Best practices for developing a trading incentive program include:
DeFi projects should use influencer marketing as part of their social strategy – especially in the beginning when you have little earned trust.
You can benefit from increased traffic and brand awareness by engaging in partnerships with influencers in the blockchain and crypto space who have already established high levels of trust with their audiences.
Using influencers who already have an audience that is interested in blockchain and cryptocurrency, it is essential. However, there are a number of scammers out there who add bots to their channels so you need to be attentive when researching influencers to partner with.
Ideally, you want to work with someone who is an expert in crypto marketing. You might also need to consider the personal brand of your influencer, and whether or not it’s a match with your company values.
Social media is a powerful tool for any DeFi platform. You can use it to increase brand awareness and build trust in your platform. One of the key elements of a successful social media strategy for DeFi platforms is influencer marketing.
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