Proceedings of The 3rd International Academic Conference on Management and Economics
The impact of External Communication Strategy on Blockchain Startups: the Case of CREDITS Platform
Communication is always an important part in establishing businesses; information needs to be accessed by the receiver in an appropriate way, and put across in a clear, impacting and engaging way so that it will have an effect on the user. This research paper gives a detailed review of external communication in the blockchain industry and how startups use communication to build their reputation. Blockchain businesses can be quite capable of building communication internally because they already know about it (however it does not guarantee a success), but how to approach those people who are not aware of this technology and it might be challenging to manage queries asked by the external entities.
Nowadays, blockchain technology is becoming the preferred choice for businesses to securely conduct transactions within the confines of their various projects. For business projects using blockchain technology, a unique blockchain platform is needed. Once they have a viable blockchain platform, they move their focus towards raising funds for this new cryptocurrency venture using an unregulated means of fundraising known as initial coin offerings (ICO) or Initial Exchange Offerings (IEO) in order to bypass the rigorous processes of accumulating capital as required by venture capitalists.
In trying to raise funds, various investors and companies are approached for potential investments in the blockchain market pertaining to this new platform and cryptocurrency venture. Throughout this research, it is observed and reported how external communication channels were used at Credits.com Pte. Ltd. to attract potential investors, particularly in terms of building a viable strategy and achieving the targeted funds needed for the pre-ICO and public ICO. Digital media and communication via direct calling and emailing were considered. These channels allowed the target audience to develop confidence that this platform is trustworthy as some ICO’s may represent fraudulent activities, trust building, and technical clarity become the key factors influencing potential traders’ decision to invest.
For this research, a cross-sectional study was conducted focusing primarily on the effectiveness and efficiency of the various channels of external communications being used to market products. Particular attention was paid to the company’s social media activities, referral links, and advertisements in online and print media and its participation in national and international conferences with an interpretive outlook, therefore employing subjective interpretation to derive findings. Various methods of data collection had been used, e.g., questionnaires and surveys, case studies, focus groups, interpretive observations using documents and company records. The findings of the research may be used for the better understanding of how to approach the targeted audience through proper medium and channels.
Keywords: Fundraising, External Communications, Blockchain, Cryptocurrency, Trustbuilding.