Blockchain is a technology synonymous with transparency, traceability and trust. However, does trust really exist from the perspective of an outsider looking into the blockchain
industry? Can protocols built upon trust truly evolve without first gaining public trust?
Throughout 2018 BlockchainDefender has been working to develop an interesting report that gives us all a better inside on how a lack of trust in the cryptocurrency industry has affected coin prices. The in-depth report will answer some of the questions we have all been asking ourselves during this never-ending bear market, and revolves around some of these key Research Findings:
• There’s a clear correlation between an increase in
negative online sentiment about cryptocurrencies
and a fall in their market capitalisation.
• If there’s high search volume and positive sentiment,
a cryptocurrency’s market capitalisation increases.
• If there’s negative sentiment about a cryptocurrency
that becomes more prominent, market capitalisation
The report gives an analytic overview on the global crypto market. It describes the most common online destinations that could be found for online negativity towards
cryptocurrencies. It tells that, in comparison, crypto exchanges seem to be struggling to protect and improve their online reputations. It tells us what impact Google search results have on us. It also gives us a better inside into Bitcoin’s global reputation and might just answer that final burning question- why does the cryptocurrency industry have a bad reputation and how can cryptocurrencies combat this problem?
Almost as interesting as the report itself, is the reason behind the study.
“‘BlockchainDefender was approached by a number of different companies within the blockchain industry in 2017- including exchanges, cryptocurrencies, tokens and wallets – that all had one thing in common: online reputation concerns. This trend extended into 2018 and while servicing these companies with a solution, we were scraping and gathering a lot of search engine data. When combined, this data was presenting us with some very interesting facts and figures”, said Tony McChrystal, Managing Director at ReputationDefender EMEA.
“Motivated by intrigue and the pursuit of gaining a deeper understanding of our client’s issues, we extended our data gathering into different demographics and started covering other parts of the cryptocurrency market. Our analysis confirmed our initial findings and assumptions; it wasn’t just our clients suffering from online reputation management issues, but the industry in its entirety.
This quite often happens to emerging markets – with outside commentary challenging new ideas and concepts – but the most interesting discovery for us was that the majority of negative commentary and content was coming from within the market itself. This information was vital to us as a reputation management service provider, as you need to know where the problem originates before you can offer the right solution”, added Tony.
The conclusion of the report might make it worthwhile to read the whole thing, as we apparently can all affect the market in a positive way. It says that, due to the prolonged bear market, many blockchain projects have halted or slowed down their marketing efforts. Doing this can be extremely detrimental to the success of a project and can lead to the collapse of a coin. Cryptocurrencies must broadcast their news, updates and progress in a clear and concise manner to authoritative and trusted industry websites. This not only helps to cement and maintain a positive reputation for the project; it also makes it stand out from the competition as a respectable project with a long-term vision.