Cryptocurrency companies look to rebrand after tough year…
The crypto industry has had a tough year. Following the implosion of several prominent firms in 2022, the industry is looking to rebrand itself and distance itself from those responsible for the collapse. The industry is attempting to recover from a loss of consumer trust and is seeking new ways to market its products.
One approach is to capitalize on the growing interest in artificial intelligence. Some firms are incorporating AI technology into their crypto offerings. This includes crypto schemes featuring complex AI tie-ins and the development of AI-themed cryptocurrencies.
Other firms are attempting to rebrand by distancing themselves from the word “crypto,” which they see as tainted. Many are now opting for words such as “blockchain” or “decentralization” to market their products.
While rebranding may provide a short-term solution, some experts argue that it fails to address the fundamental problem: the industry’s struggle to demonstrate the practical value of its technology to an increasingly skeptical public.
US regulators have taken enforcement actions against several major crypto companies, and the industry is still grappling with the practicality of its technology. The abrupt failures of two reliable banking partners, Silvergate Capital and Signature Bank, have also dealt a fresh blow to crypto start-ups, making it harder to conduct basic business operations in the United States.
Despite these challenges, the crypto industry is attempting to shift its narrative and win back the trust of consumers. This is a familiar routine in an industry that has experienced repeated booms and busts over its short history.
“Rebranding doesn’t solve the fundamental problem,” says Lee Reiners, a former supervisor at the Federal Reserve Bank of New York who now teaches at Duke Law School. “What is this good for? What problem does it solve? This is just P.R.”
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