When all trust is gone

What is the future of crypto and how does it recover from the FTX debacle and other recent dramatic implosions?

Jerry Olson shared an article in Fast Company that critiques crypto brands’ approach to messaging and speculates about a way forward.

Until now, most brands have built their images on celebrities and hype. Stars like Matt Damon, Steph Curry, and Kim Kardashian have emerged as the faces of various brands.  And a lot of the messaging is about how uncool and backward you are if you aren’t in on the ground floor of crypto.

Recall the somewhat condescending but also inarguably funny FTX Super Bowl ad, with Larry David playing the role of a curmudgeon who dismisses crypto right along with other groundbreaking creations like the fork, the wheel, and the lightbulb.

The problem is no one ever lost oodles of money buying forks and lightbulbs. Lots of people have lost money in crypto and now those smug ads and big-name stars seem like so much snake oil.

The article suggests the road to recovery is paved with a deeper understanding of investors’ emotional needs.  The brave early adopters have already had their turn. Bringing more Main Street investors into crypto, especially given all that has happened in the last year, may require a more sedate approach that will acknowledge risk, allay fears, and go beyond just entertaining people and urging them to be daring.