Crypto influencer BitBoy Crypto has issued an apology for promoting tokens, comparing it to a “poisoned chalice”. The practices involve token promotion business being passed from one bull-run’s influencers to the next for a quick financial gain, causing damage to the industry. BitBoy Crypto advocates for more ethical and sustainable business models, such as corporate sponsors or partnerships, that put building a product that stands for itself as a top priority. Projects such as Cardano, XRP, BNB, Litecoin, and Ethereum did not engage in heavy token promotion but instead focused on building strong products.
Why Token Promotions in Crypto Must Stop Immediately
It’s something I didn’t think I would ever have to say at least about this one thing.
The Toxicity of the Token Promotion Business
Today, we’re going to be talking about a business model in crypto that is so toxic that it must stop now. And I’m talking about the token or coin promotion business. It acts as a poisoned chalice passed from one bull run’s influencers to the next. And I can tell you that I’m sorry that I did them. Knowing what I know now about the way this business works, I wish I could go back in a DeLorean and tell myself not to do it.
Better Ways to Make Money in Crypto
But, look, making money in crypto and as a content creator, it’s a good thing. People build businesses. It’s not a bad thing. However, we’re moving on to our fourth Bitcoin bull run and our third altcoin cycle. And now things are becoming clearer on what works and what doesn’t work.
What’s Okay to Do in Crypto
Corporate sponsors, Exchange sponsorships, Wallet sponsorships, Unstoppable Domains, Great partnership, Paid newsletters, and courses are all things that are okay to do in crypto, in my opinion.
Why Token Promotions Don’t Work
But promoting tokens, it doesn’t work. And I would really say, promoting NFTs probably fits that same model. Also, taking private sale investments with an expectation from a project that you’re going to give them coverage for that? Those things are not okay. And they’re damaging to the space.
The Model from 2017
When I began my YouTube channel, the model that I had from the YouTubers from 2017, there were a lot of undisclosed promotions. There were a lot of pumping their own bags. A lot of pump-and-dumps. Of course, not every YouTuber fit that description, but that was a very common thing back then. That was the model that was passed on. Obviously, that wasn’t a good model.
The Flawed Token Promotion Business
So I thought to myself when I began my career here on YouTube, if I disclose every ad I ever do, that will be enough. And certainly don’t ever pump and dump. It’s not an advantageous strategy long term for a YouTube channel that plans to be around as long as I am. But what I didn’t realize was that, in reality, there’s nothing you can do to defend the token promotion business. You see, there’s a lot of predators out there. And sometimes the audience feels like the prey. But I can tell you I definitely have felt like the prey as well.
The Flawed Value of Tokens
From a fundamental standpoint, tokens that want promotion, they’re really only after one thing. They’re wanting to see the price of their token go up. They want to shortcut the hard work of creating a product that stands for itself. In crypto, of course, it would be a platform or whatever it might be. But where’s the value?
The Lack of Passion in Token Projects
Many of these projects, they launch and they raise money, and they haven’t even built the thing yet. And sometimes I can be a little naïve. And I can be too trusting. And I would listen to people when they would tell me their use case and what they were building, and they would get me excited. And it might do great for a week or two after a video, But, like, 95% of those projects are dead, or are at least not on the right track. There are certainly a few exceptions. But think about the projects that never did token promotions.
The Projects That Succeed Without Token Promotions
Cardano, XRP, BNB, Sandbox, Litecoin, and even Ethereum. They didn’t need to do token promotion because they were really passionate about building something, and that took the priority.
The Winners and Losers
And when those projects fail, or the prices go down, who wins and who loses? Of course, in any buy or sell, 50% of the people win. 50% lose. But that 50% who win in this case is tilted heavily towards one specific group.
The Perfect Setup for Token Founders
They do a promotion, and a video comes out, awareness gets brought to the project. They may do several videos in one day. And then, all of a sudden, awareness and people get excited. And they start buying this token. And the price goes up just enough for the founders to cash out. But guess who is left holding the bag? The person that did the video.
A Predatory Business Model
Because we are the front-facing person. So the people who win are the teams, the founders, the insiders. They dump the coin. They take advantage of the liquidity from the users who go in and buy it. And meanwhile, there’s a timestamp on a chart of a moment where a video came out, and quite often that can be exactly where the difference between winning and losing sits. But this, as I said earlier, is a predatory business.
The Importance of Protecting New Investors in Crypto
So, guys, don’t end up having to say you’re sorry one day. Just don’t do them. You have to understand how important this is for adoption, really. So we, I feel…