#3 - Web3 news, but differently

Welcome to Edition #3 of “Brands in Web3 & Web3 in brands“. This is your chance to catch up on the latest news from the Web3 space and get marketing and branding insights with a pinch of spice.?

This week: The good, bad, and ugly of Bitcoin ETFs; leveraging branding lessons for crypto hubs; how is the OKX-Man City deal furthering Web3 adoption?

Bitcoin ETFs – the good, the bad, and the ugly

The prospect of a spot Bitcoin ETF approval for the heavily scrutinized US markets, following many previous rejections by the U.S. Securities and Exchange Commission Commission, has dominated crypto news headlines over recent weeks. But is it all as unambiguously positive as it seems??

At first glance, there are plenty of good reasons to get excited. Increased demand for spot Bitcoin, speculative excitement, and the reputational boost of endorsement from banking giants all bode well for the industry's future.?

However, just because Wall Street seems ready to clothe Bitcoin in the Jacket of Respectability doesn’t necessarily mean that crypto’s flagship asset will sit neatly in the world of institutional investing. Particularly given the SEC’s determination to clamp down on the sector.?

What’s more, a Wall Street takeover could damage Bitcoin’s core credentials of being decentralized, censorship-resistant, permissionless, and borderless.?

Jacket of Respectability, or Emperor’s New Clothes? In my latest thought piece , published yesterday on LinkedIn, I’ve shared my views on the good, the bad, and the ugly of Bitcoin ETFs.?Read “ETFs –?the good, the bad, and the ugly”

What makes a “Crypto Hub”???

I was recently conversing with a senior government representative from a smaller EU nation interested in establishing a crypto hub in their country. Coincidentally, this meeting took place within days of Coindesk’s Consensus magazine publishing its list of the top crypto hub locations for 2023.?

So I’ve been thinking: what’s involved in turning any given location into a crypto hub? Or, more pertinently: what attracts crypto innovation and entrepreneurs to any given location??

The locations that stand out as successful crypto hubs do so because they deliver something of value to crypto founders. Switzerland’s Crypto Valley – which tops the CoinDesk list – emerged from the country’s strong financial base and reputation for innovation. The government was also quick to recognize the opportunity of being a small, agile player in a field not yet dominated by large economies and launched the Blockchain Act in 2021, creating regulatory certainty and further promoting development.?

Post-Brexit, the idea of the City of London becoming a hub for crypto-financial innovation has been mooted several times under the watchful eye of the Financial Conduct Authority. It also features highly on Coindesk’s list. However, the closest players to Switzerland’s crypto-friendly environment remain Singapore, South Korea, and the Emirates, all known for fostering financial and/or crypto innovation.?

As with exchanges and other crypto operators, finding a brand niche to occupy is key for countries seeking to establish themselves as crypto hubs. However, it doesn’t necessarily mean that the nation needs to have a strong financial presence – there are other segments of the market to explore.

For instance, Silicon Valley has attracted crypto firms keen to replicate the disruptive business models of Web2 predecessors like Uber, while many developing economies are seeing substantial growth in digital asset remittances. Whether the government likes it or not, China remains an attractive location for miners despite a ban.?

Any country seeking to become a crypto hub already has strengths and areas of opportunity that could be leveraged to attract more blockchain and Web3 innovation. As with the development of any brand strategy, it’s a matter of identifying the audience and building a meaningful connection that plays to the best opportunities.?

OKX x Manchester City – the Ghost of SBF, or a lesson learned??

Last week, OKX announced it was cementing a third deal with top-flight English Premiership team Manchester City Football Club . In a deal worth $70 million , the crypto exchange will feature on the shirtsleeves of City players for the next three years.?

Now, I’ve written before about the astronomical marketing budgets used by crypto exchanges to gain little else but name recognition – specifically in relation to FTX and its spending on renaming the Miami stadium. In summary, I believe many other ways to spend a marketing budget will result in a more substantial ROI than name recognition from sponsorship deals.?

But is this deal by OKX a case of history repeating itself? The press release announcing the partnership seems to indicate otherwise, containing quotes that reference “unique, exciting and innovative engagements through Web3 technology” and promises “amazing things every time [fans] interact with OKX.”

Having dug into the details, it seems there is indeed more going on than a straightforward sharing of brand names. OKX initially inked a deal with Manchester City in 2022. They’ve since established the “OKX Collective metaverse, ” a “unique virtual metaverse environment that allows fans to experience Web3 first-hand and gain access to special content, experiences, and rewards from some of their favorite Manchester City players.”?

So far, it seems that fans can gain access to NFT sneakers and watch star midfielder Jack Grealish play a DJ set in the metaverse.?

The development of the OKX Collective demonstrates a clear commitment to delivering more value from the Web3 experience than mere name recognition. However, the current depth of that experience and the excitement it can generate among fans seems limited, given the vast sums on the table.?

In my view. OKX and Manchester City have established a foundation on which to build a meaningful Web3 experience, but there is still plenty of opportunity to deliver more that better fulfills the promise. Let’s see if they can leverage the lessons of history for future benefit.?

Advancing adoption

In other sporting news, 瑞信 has teamed up with the Swiss Football Association to release an NFT collection featuring digital portraits of the Swiss Women’s National team. Dedicated to supporting women’s football, all proceeds will be donated to the team and other Swiss women’s soccer organizations.?

Music industry adoption stories have been a staple feature of past newsletters, and this time around is no different. Coindesk reports that attendees at a recent gig by pop megastar Harry Styles were recently invited to open digital wallets through the EVNTZ app, allowing them access to future blockchain-based rewards.?

However, that wasn’t the core utility. The project used the opportunity to engage fans by allowing them to book transport, post social photos, and access merchandise via the app. As such, there’s a more compelling reason to use the app than the mere promise of rewards.?

Fashion giant Lacoste has announced the meat of its Web3 offering. 11,200 NFTs previously dropped under the name of “Genesis Collection” will turn into a so-called dynamic gateway to its new Web3 ecosystem.

Many brands launch NFTs with the expectation that they’ll serve as an engagement tool by themselves. Lacoste is taking a different approach, rewarding participants according to the extent and frequency of their engagement. A leaderboard will introduce a gamification element, encouraging further participation. It will be interesting to see how this more dynamic approach to brand engagement using NFTs plays out.?

A word from my sponsor ;)?

Regular readers will know that I’m a huge proponent of brand consistency, and I see a massive opportunity for crypto firms to leverage the science of branding – an opportunity that’s currently being missed. These are bold words, so at THE RELEVANCE HOUSE. , we’ve been putting in the hours with some extensive research to back them up.?

In the coming weeks, we’ll be publishing the first tranche of an in-depth quantitative brand analysis of cryptocurrency operators. The initial release will focus on branding for centralized exchanges, covering all the leading players, including Binance , Coinbase , Kraken Digital Asset Exchange , KuCoin Exchange , Crypto.com , and others.?

This is the first research of its kind. THE RELEVANCE HOUSE has developed a proprietary methodology that quantifies brand consistency and highlights specific instances and impacts of conflicting brand messaging.?

So watch this space for some intriguing, quantified insights into the current state of digital asset branding and learn more about how you can leverage these lessons in your own business.?

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