According to a Pew survey, most Americans are resistant to sales pitches from the industry.
The crypto industry has spent tens of millions of dollars attracting new customers over the past year, including companies such as FTX, Coinbase, and Crypto.com. In an advertisement for Crypto.com, Matt Damon famously said, “Fortune favors the brave.”
Experts say it’s an eye-opening study to find they weren’t at all successful, based on the study that was returned. Study conducted by Pew Research Center indicates that the number of people investing in cryptocurrency has stagnated since last September. Based on a survey conducted in September, the results were released Tuesday. Approximately 10,371 Americans were asked back then whether they had invested in, traded, or used cryptocurrency. According to the survey, 16 percent of Americans have done so.
Earlier this month, the nonprofit asked the same question to a slightly smaller sample of Americans, at 6,034. The percentage of people who have invested or traded in alternative currencies again increased to 16 percent.
It appears that American consumers remain immune to crypto interests’ sales pitches despite numerous splashy campaigns.
Lee Rainie, Pew Research Center’s director of internet and technology research, led the study and said, “It’s remarkable that despite all the excitement about crypto in the last year, crypto investment or trading hasn’t changed.
“There was no visible difference in the market when attempts were made to entice new buyers.”
Crypto firms began recruiting retail investors at the end of 2021 and the beginning of 2022. Buying digital coins and signing up for exchanges are essential to the market’s long-term health.
The naming-rights deal for Los Angeles’s Staples Center was announced several weeks after Damon’s commercial aired in October.
Toward the end of February, the campaign was in full swing. Each of the three trading platforms paid $6.5 million per 30 seconds for Super Bowl airtime – Crypto.com, FTX, and Coinbase.
According to FTX, for example, the advertising aimed at a broad spectrum of Americans, encouraging them to invest in crypto instead of being techno-skeptics like Larry David, the star of the spot.
Crypto-skeptics have argued that currencies lack intrinsic value, and that new investors are necessary to enrich the old ones. The survey results support that critique.
According to Nicholas Weaver, a computer-security expert from the University of California at Berkeley who has frequently raised ethical and financial concerns about crypto investments, it is not surprising that the cryptocurrency space has run out of suckers despite a lot of advertising.
The number of suckers is limited, even though a sucker is born every minute.
Although there has been a lot of attention given to crypto in the news, the Pew study notes that there has been little overall change.
Pew’s findings were not embraced by all analysts. According to Edward Moya, senior market analyst at crypto trading company Oanda, the research is questionable.
There have been many people showing extreme interest in crypto over the past year – doctors, nurses, professors – especially at the start of 2022 when many of them bought in for the first time.
Because not everyone wants to disclose their investment, and studies do not count on those most likely to invest, crypto enthusiasts argue that studies underestimate the number of crypto investors.
It was Rainie’s responsibility to make sure that representation across racial, gender, and economic groups was proportional.
It could become even more difficult to find new pools of investors in the months to come, according to industry leaders.
According to Coinbase’s earnings call this month, it expects to end the year with between 7 million and 9 million monthly active users, down from 11.4 million at the end of 2021.
Although retail investors dropped off in the wake of the recent crash, Moya believes institutional investors will step in after a crash to bolster the cryptocurrency market.
Demographics were also analyzed by the Pew study, which found that they hadn’t changed much either.
Crypto investments were only one-fourth as common among adults over 50 in September as they were among those under 30, while men were 2.5 times more likely than women to invest in crypto.
In addition, the study found that none of the marketing campaigns did much to increase general awareness of crypto.
There were 14 percent of people last September who said they’ve heard “nothing” about cryptocurrency. Despite all the media coverage this summer, there were still 13 percent of crypto-ignorant people.
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