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A Crypto In Crisis


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BlockchainDefender studied the online reputation of a cryptocurrency which fell into crisis and analysed the reputation of the coin both before and after the event - here are the results we found.

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A Crypto In Crisis

  1. 1. A Crypto in Crisis BLOCKCHAINDEFENDER People are researching blockchains, cryptocurrencies and tokens online, and are increasingly making investment decisions based on what they find. More so than traditional tech and finance companies, FinTechs must put more effort and resources into building a credible and durable online reputation. A shift in reputation sentiment - or a PR crisis which negatively impacts your brand online - can decimate coin trading prices overnight. Why Your Online Reputation Matters BlockchainDefender studied the online reputation of a cryptocurrency which fell into crisis and analysed the reputation of the coin both before and after the event. The study was based on a sample set of cryptocurrency data for the most popular brand searches within Google as viewed in 5 different countries. Reputation Crisis: A Study BlockchainDefender is an innovative new solution for blockchains (cryptocurrencies/tokens), ICOs, exchanges and individuals within the space. Providing online reputation management services that allow businesses – as well as individuals – to control their online presence, BlockchainDefender’s core product is search engine suppression. By displacing negative content in the search results positive material can rise accordingly, with a stronger reputation as the end result. ReputationDefender has substantial expertise working for clients within the blockchain/cryptocurrency industry. As a result of our unrivalled knowledge and first-hand experience, BlockchainDefender was born.
  2. 2. Over the 5 countries analysed there was little to no negative content being published for the brand search for the cryptocurrency before the crisis event. This isn’t typical for a crypto organisation, so it was obviously in very good standing in the market. In fact, there was significantly better than average positive content being shared online, coming in at 16.4%. Most content being published about the project was neutral - 37.5% - and not of reputation concern to the brand. 1.3% Negative Potential Negative Official Neutral 3rd Party Positive Negative Official Neutral 3rd Party Positive 23.4% 37.5% 43.2% 34.2% 30.6% 16.4% 2.4% 10.8% In comparison, directly after the crisis we saw a significant increase of 22.1% negative impact over the 5 key demographics. What was also evident was a massive decrease of 14% of positive impact across the analysed counites, In addition, all ‘possible negative’ sites prior to the crisis evolved into 100% negative sites due to user comments being added after the event . Before Crisis AFTER Crisis
  3. 3. East Vs West Interestingly, we can clearly see the contrast in how the crisis was perceived in key demographics, with a huge swing in negative impact in the West compared to the East. NEGATIVE OFFICIAL NEUTRAL 3RD PARTY POSITIVE Google universal - japan 14.3% 52.9% 32.8% Google universal - USA 2.25% 47.55% 21.2% 29% Google universal - UK 40.65% 28.4% 30.95% Google universal - United arab emirates 72% 5.25% 22.75% East West
  4. 4. Before Crisis Negative Impact: Breakdown by Site Type and Occurrences The charts below detail the amount of occurrences of sites and their classification before and after the crisis. In one week we can see how 22 positive sites have been replaced by 28 classified negative sites. NEGATIVE 3RD PARTY POSITIVE POTENTIAL NEGATIVENEUTRAL OFFICIAL 20 5 3 have been categorised as negative crypto market news e.g. have been categorised as negative mainstream news e.g.. have been categorised as negative forums e.g. after Crisis In total, BlockchainDefender discovered that this cryptocurrency suffered from an average of 23.4 % negative impact following the crisis, a dramatic increase from 1.3% negative impact pre-crisis. Thecombinedaveragemonthlysearchvolume forthebrandtotals250,000searchespermonth. Due to the current negative impact, more than 58,500 potential engagements are being directly influenced by the new negative material covering the crisis. 3 28 38 31 2 9 40 27 22
  5. 5. Before Crisis IMPACTafter Crisis Coin Price During the Crisis What impact did the crisis have on the trading price of the coin? Analysis covering the 7 days during the event shows the devastating affect an uncontrolled reputation crisis event can have on the value of a crypto project. The coin price was decimated overnight, which resulted in the loss of millions of pounds. Market Cap: 160,313,254 USD Price USD: 3.20 Price BTC: 0.00047549 24h Vol: 4,470,020 USD Market Cap: - 55,552, 520 USD Price: - 1.15 USD Price BTC : - 0.00014776 Market Cap: 104,760,132 USD Price USD: 2..05 Price BTC: 0.00032773 24h Vol: 2,989,950,USD