Amanda Cassatt, founder of Web3 marketing firm Serotonin, emphasizes the necessity of skepticism and thorough personal research for investors navigating the burgeoning cryptocurrency market. Speaking at Token2049 in Singapore, Cassatt voiced concerns about the role of marketing in propagating potential scams and misleading promotions in the crypto industry.
Cassatt highlighted that while marketing can significantly amplify the reach and appeal of cryptocurrency projects, it can also be a tool for deception. “Marketing is a mechanism for perpetrating the fakery and the scams, and I think people should be very skeptical and do their own research,” she explained. This caution is particularly pertinent given the complex and often opaque nature of many crypto projects.
Due Diligence in Crypto Investments
The conversation around due diligence is critical, with Cassatt advising that both seasoned investors and newcomers maintain a rigorous standard of skepticism. She noted that understanding the technology or product one is investing in is crucial and should go beyond superficial marketing messages. This skepticism is essential not just for individual investors but also for PR firms working in the crypto space.
Over recent years, the standards for due diligence within PR firms have escalated. Cassatt pointed out that these firms often rely on second opinions from fund managers and angel investors who provide deeper financial evaluations of crypto projects. “We are mostly referred business from the leading VCs in the space, and so the fact that they’ve done their due diligence on these projects is definitely helpful to us,” Cassatt stated. This collaborative approach helps ensure that marketing efforts are attached to legitimate and viable crypto endeavors.
In addition to external validations, PR firms engage in their own rigorous assessments to decide whether to take on a crypto project. This process ensures that the project has a solid team capable of achieving its goals and that the marketing firm can effectively contribute to its mission.
Celebrity Influence in Crypto Marketing
Cassatt also discussed the impact of celebrity endorsements in crypto marketing, using rapper Iggy Azalea’s involvement with a Solana-based token as an example. She described the strategic use of celebrities who do not immediately evoke associations with technology or crypto, creating a stark juxtaposition that makes the marketing memorable and effective. This tactic aims to draw attention and generate excitement around crypto products in a crowded market.
The discussion also touched on the repercussions of crypto project failures, which can extend beyond the immediate team to include marketing agencies and other associated entities. The collapse of major platforms like FTX has shown how widespread the consequences can be, sometimes implicating even YouTube influencers and other promotional partners in legal challenges and public backlash.
As the cryptocurrency sector continues to evolve, the interplay between marketing strategies and investor education becomes increasingly significant. Cassatt’s insights underscore the importance of critical engagement with crypto marketing and the essential role of due diligence in fostering a more secure and reliable investment environment. As the industry matures, the call for enhanced scrutiny and accountability in crypto promotions is likely to grow louder, aiming to safeguard both investors and the integrity of the crypto market.
