The Reasons Why Altcoin Marketing Is Effective

Marketing in cryptocurrency is characterized by a virtuous feedback loop, in which anybody who purchases a token is more likely than anyone else to advertise the token to other people via word-of-mouth.

Because of the incentives, holders of a given token are able to undertake a significant amount of extra promotion for the currency.

Altcoin founders euphemistically refer to these individuals as their "community," who assist them in promoting their coins at no expense to the altcoin marketers. As a result, the marketing dollars invested in cryptocurrencies have yielded astronomical returns.

Effective Marketing on Altcoins

Effective marketing, and to lesser extent coordination of marketing activities, are the most important factors in determining the value of an altcoin. Ironically, the more centralized an altcoin is, the better it tends to perform in terms of market capitalization.

It is no accident that Ethereum and Ripple are the second and third most valuable cryptocurrencies in the world, respectively.

They both have strong centralized teams, one of which is a foundation and the other which is a company, and both are excellent at marketing. BCH, which is now ranked fourth in terms of market capitalization as of this writing, also benefits from the same marketing concentration around Roger Ver, who controls the very valuable domain.

Altcoins that aren't adept at marketing tend to fare poorly over time, even if they have strong technical teams on their side of the equation.

Coins like Monero, ZCash, Grin, and Decred fall under this category, since they all have competent cryptographers and programmers on their teams, but they fail to conduct good marketing campaigns.

Other cryptocurrencies lack both effective marketing and technical teams, and as a result, they perform the poorest of all.

Altcoins are engaged in a game of efficient marketing, which is what they are best at. Through marketing, the most precious coins have been able to generate demand nearly entirely on their own.

In other words, the majority of the demand is fabricated. Technical efforts may be readily duplicated, but marketing funds are not so easily duplicated. This also explains why so many cryptocurrencies spend so much money on things like conference sponsorships, parties, airdrops, internet advertisements, and charity gifts.

The market capitalization of a cryptocurrency is seen to be a good indicator of the efficiency of the coin's marketing activities.

Trends in Alternative Cryptocurrencies

On the most popular cryptocurrencies, there are some evident tendencies. The majority of cryptocurrencies are launched immediately after a significant Bitcoin bull market, which dates all the way back to 2011.

When most altcoins pump, they do it during the start of the coin's life and during bull markets in Bitcoin.

The technical specifications of a particular coin do not seem to be very important. Given the ease with which currencies may be duplicated, there is no "fundamental" value to the technology or feature set.

Technical "features," on the other hand, are more useful for marketing reasons. All of this is to imply that marketing is a significant factor in the existence of any value for cryptocurrencies at all.

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