The road to responsible communication

From its earliest days, the crypto industry has attracted a lot of controversial attention. With immense sums of money being poured into a largely unregulated space, it has attracted visionaries and innovators, but also bad actors who wanted to get easy profit. High-profile scams, security breaches, and extreme market fluctuations have resulted in a lot of doubt about this space among the general public. Since then, cryptocurrencies have continued to struggle with attempts to shed their image of being risky and unreliable. Various statistics point out that up to 70% of general consumers who are aware of crypto trust it “not much” or “not at all.”

The collapse of FTX two years ago delivered yet another blow to the sector’s credibility, resulting in a flood of skepticism and loud calls for stronger regulation as investors lost billions. Market studies in the wake of the scandal indicated that 49% of respondents have found their impression of the crypto market changed for the worse as associations with criminality and fraud grew.

Scandals like these, coupled with the natural volatility of crypto and bad press that often adds more fuel to the fire, leave an enduring mark. The crypto industry continues to mature, but in order to achieve the kind of mainstream adoption that so many market players keep looking forward to, it needs to eventually rebrand itself and kick the stigma of untrustworthiness. Addressing its image problems head-on and improving communication practices will go a long way toward meaningful changes.

Main barriers to acceptance

Historically speaking, one of the bigger challenges that prevented the crypto industry from being taken seriously has been its informal culture. Having been to my share of crypto events, I have seen how thought leaders in this sector project a very different image from their TradFi counterparts. Think hoodies over suits and conversations heavy with technical jargon. 

This laid-back approach starkly contrasts with the formality and precision of traditional finance. And for those accustomed to structured, professional environments, the crypto world can appear unprofessional, if not outright juvenile.

The abundance of complex technical terms also has a way of alienating potential users. For newcomers, trying to understand crypto often feels like learning a foreign language, and many find themselves so intimidated that they’d rather not try at all. This slows down mainstream adoption and promotes the idea that crypto is an “exclusive club” rather than something that could truly change the approach to finance on a global scale.

Finally, the media coverage of this industry also played an unfortunate part in its negative perception. Stories about market crashes, rug pulls, and other scandals have a way of dominating the headlines. On the one hand, it makes sense why the media would actively go for sensational stories—the “shock” factor of such news tends to gather a lot of attention and draw in readers. But it also means that positive news and legitimate achievements have a hard time trying to stand out and being seen amidst such context. 

Truthfully, this trend goes all the way back to the ICO boom of 2017: it was the period that first showcased the potential of blockchain technology, but it also unleashed wave after wave of speculative projects that prioritized hype over substance. These projects gained a lot of attention from big media outlets on the basis of being “new and shiny,” and the image never quite broke since then. 

To be fair, it should be said that the media have learned to be more cautious and balanced since then. But even now, it’s not unusual to see “sensationalist” reporting over more objective narratives, which makes it harder for crypto to gain widespread credibility.

Comprehensive communication for the win

To mend the reputational damage and bridge the gap between crypto and the broader public, this industry needs to take steps towards overhauling its communication practices. Here are some of the ways that I can see it happening.

First of all, crypto companies need to stop encouraging sensationalism from their own side, moving away from overhyped promises and shifting to a more professional narrative. As someone who consulted more than a few financial companies on growth strategies, I can say that investors and users alike appreciate it when companies give them a clear, honest idea of what they’re doing. Transparent communication that highlights real-world applications of their services and the security steps taken to protect clients would do a lot in terms of establishing credibility and alleviating skepticism. 

There’s no need to abandon the industry’s innovative spirit, but adopting a more polished and professional image can help build trust. Thought leaders should seek ways to strike a balance in the way they present themselves so that both crypto enthusiasts and the TradFi representative can find them palatable. Casual style has its place, but when you’re talking business, adhering to a stricter dress code and delivering presentations and reports in a concise and well-structured manner is what you should be aiming for. It can certainly go a long way in dispelling any perceptions of immaturity.

Another thing to consider is how crypto companies deliver their messages. Accessibility to an average person should be taken into account: using plain language to explain ideas and benefits can make the space more inviting for those unfamiliar with crypto and blockchain. Launching educational initiatives that demystify this industry to non-crypto natives can also help bridge the gap—we have been sadly lacking in those.

Finally, more crypto businesses should focus on their long-term value instead of trying to ride the coattails of temporary hype. I have often seen projects trying to bolster their positions by making use of the market boom cycles instead of polishing their unique competitive advantages and highlighting meaningful contributions to this ecosystem. 

But serious investors want more than flashy marketing—they appreciate well-laid plans and clearly defined positioning. It shows that the project is serious about its future, which is certainly helpful when trying to bolster credibility.

By prioritizing sustainable growth, the companies in this sector can position themselves as reliable, leading to better odds of establishing collaboration with TradFi institutions and building a broader following from users beyond the crypto industry.

Building a new perception

If the crypto sector is to truly redefine itself and its image, it has to fundamentally alter its messages and communication methods. And it’s not something that can be achieved through the efforts of just 1-2 individual companies. Collective effort is needed here, with everyone, from fresh startups to established players, pitching in to present a unified front of transparency and real value.

Once this has been achieved, the road to mainstream adoption will become considerably easier, as crypto businesses will not have to struggle so much to be seen as legitimate.