The Impact of External Communication Strategy on Blockchain Startups: Analysing the Case of Credits Blockchain Platform

Sadia Bruce

doi:10.33422/ijarme.v4i2.673

Abstract

Communication is always an important part of establishing a business’ sense of direction and growth; information needs to be accessed by the receiver in an appropriate way and put across in a clear, impactful and engaging way so that it will have an effect on the user. This research paper gives a detailed review of external communication strategies in the blockchain industry and how startups could revise their strategies over time to build trust and reputation. Even if the blockchain industry is becoming the preferred choice for businesses to securely conduct transactions, not many blockchain projects find acceptance amongst investors. Blockchain projects focus on raising funds for their ventures at a stage where they seldom have a viable product and using unregulated means of fundraising like initial coin offerings (ICO) or initial exchange offerings (IEO) have in turn been used to accumulate capital for such projects. With trust depleting in these means of fundraising, blockchain are becoming increasingly aware of the need to tailor their communication with potential investors. In this study, we’ve conducted cross-sectional studies across two separate times, once in 2017-18 at the time ICOs found prominence and then later in 2021, exploring how external communication strategies were revised and improved upon over time to ensure success and favour amongst users and investors.

Highlights

External communication strategy is nowhere as important as it is in the context of the blockchain industry
This study aims to calculate how external strategies are formulated into favourable outcomes based on the phase of any given blockchain project from the startup’s initial initial coin offerings (ICO) efforts through to the final product development phase
Research objectives Because this research is based on cross-sections of a rather large time horizon, the blockchain company studied was a semi-established blockchain startup – just a few years old at the time the first phase of this study explored the machinations of its external communication strategy

Summary

Introduction

External communication strategy is nowhere as important as it is in the context of the blockchain industry. The industry has seen its fair share of peaks and troughs in its trustbuilding efforts. As much as the hype around one of its applications, i.e., cryptocurrency, has remained volatile at best, the industry still needs a better way of transmitting information to its stakeholders largely in the sphere of its influence—customers, potential investors and shareholders, etc The conceptual basis for blockchain harks back several decades yet because of the haze of uncertainty it attracts, practitioners find it difficult to indulge in fundraising endeavours, convincing sceptics into potential customers. The industry is making strides by addressing and resolving such issues through cooperation along with collaboration with their stakeholders

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