The world is still suffering one of the greatest challenges since World War II. The COVID-19 crisis is affecting every aspect of our lives. Society and the economy have largely been brought to a standstill, and almost every country is in the grip of a recession. It is likely that the COVID-19 crisis will have substantial consequences for our way of living, working and shopping, saving and investing, and more specifically for consumer behavior. This means it will affect almost all businesses, including crypto currency brokers. To be able to continue meeting investors’ basic needs, and to maintain employment levels, companies must limit the damage as much as possible. One of the tools available to achieve this is marketing.
Gallen Capital CMO speaks about Marketing for Crypto Currency during Covid time.
Marketing in general has changed a lot during almost 3 years of Covid-19 era. What is the hardest part for Marketing in Crypto currency trading?
The COVID-19 crisis is affecting consumer behavior and thus the way in which marketing can be used. The use of marketing during (and after) the COVID-19 crisis shows (and will continue to show) similarities with the way that marketing is carried out during economic downturns. Dekimpe and Deleersnyder have summarized the most relevant studies on the effectiveness of marketing efforts during downturns and upturns. However, this specific crisis, which will be followed by a recession, displays characteristics that differ from those associated with a recession. For example, as well as a fall in consumption due to lower consumer confidence, lower incomes, consumer defaults on loans and reduced financial means as a result of falling share prices, shifts in consumption are also occurring between product categories. In parallel to these economic developments, the imposition of social distancing is also affecting the drivers of consumer behavior. Consumers are being challenged to re-evaluate their life priorities, which may give rise to new values and spending criteria.
During the last almost 3 years, the crypto currency market has witnessed both the highest and lowest, the prosperity and collapse of some major coins, which has led to a very unstable market and raised investors’ fear. We have been trying to keep rolling, supporting and educating our investors in every possible way.
Some say this can be the right time to invest in crypto, what’s your opinion?
I can say anytime is the right time to invest in crypto, as long as you have your investing plans, which includes financial forces, market research, sometimes emotional support because this market can get very tricky at times.
Nearly every asset class has been crushed in 2022 so far. Stocks and bonds are down sharply, and gold is off by around 10%. Only cash equivalents have sustained a positive return. None of these have seen more pain than cryptocurrency. In November 2021, Bitcoin (BTC) was close to $69,000 – nowadays, it’s around $20,700, a decline of nearly 70%. Ethereum (ETH) is down 58%. Altcoins are no better, with Cardano (ADA) and Solana (SOL) shedding more than 70% and 55% of their value year to date, respectively.
Crypto investing should be viewed through a long-term lens. In the short term, crypto is prone to immense swings in value.
Speculators who don’t have a long-term time horizon take on massive risks from the heightened volatility of the crypto markets. If an investor can hold onto their crypto for long periods, they can weather the storm of short-term price drops as long as the underlying asset is valuable and will survive a bear market.
With short-term trading, the scope for gains (and losses) is far greater. For some observers, the difference comes down to gambling versus investing. The former offers greater potential for gains in the short term yet resides much further out on the risk spectrum. With greater upside, of course, comes the greatest risk.
Is there anywhere in crypto to invest right now?
There are a ton of coins we can take a look at to invest, but large-cap cryptos are still the safest run, in my opinion. Similar to blue-chip stocks, the biggest cryptocurrencies will likely weather the storm the best. These coins are the closest thing to an established record.
- Bitcoin: Nothing is surprising in saying that Bitcoin, the world’s biggest crypto, is the safest bet in the current bear market. It still has a market cap of $396 billion, and it’s held on the balance sheets of public companies. Institutional adoption has been scaling up and has carved out a role for itself in the mainstream financial markets.
- Ethereum: ETH has established itself as the leading smart contract blockchain, the base layer of the decentralized economy. Ethereum and Bitcoin represent nearly 60% of the market – immensely volatile and risky but the most established.
- USD Coin (USDC): With markets plunging everywhere, this stablecoin has been one of the main crypto refugees this year, based as it is on the U.S. dollar, the ultimate safe haven.
Note that owning fiat-based stablecoins is a way for crypto investors to secure their wealth in dollars without leaving the crypto market.
What’s your plan to keep Gallen Capital going in this tough time?
The financial market is in a dark time but I have learned during my time in Gallen Capital that the market itself is not the only thing that changes. People change too and they change so fast that we have to change even faster. Marketers in Crypto currency, especially in Gallen Capital, have to study the financial market every hour, everyday. We have to make sure that we become the experts, the source of information and knowledge that is accessible for every one of our potential clients.
We also have to come up with new marketing tools and ideas that can attract more investors to Gallen Capital. Investors nowadays are well-educated of the financial market and the competition between brokers and platforms is getting bigger every day. We have been trying to make sure that all the investors that chose us – Gallen Capital – are treated well with integrity, equity, thoughtfulness and liquidity. That may sound easy, but it’s actually a really tough goal to achieve.
Thank you for sharing! CMO Gallen Capital.
