Crypto seems to have cracked the code and it's embedded in “flexibility and accessibility” as we've always expected.
SocialFi is the winning sector geared to bring mass adoption to crypto and it's already started.
Crypto is finding new momentum in SocialFi, a fusion of social media and decentralized finance (DeFi). This innovative approach leverages social interaction to drive user engagement and adoption of blockchain technologies. Noteworthy successes such as Notcoin and Hamster Kombat, both of which are Telegram-based projects, highlight the potential of SocialFi to attract a vast user base and stimulate investor interest.
There appears to be some struggles of understanding, surrounding the concept of "SocialFi." The inclusion of "finance" in its name gives it an impression of being formal and complex, which may obscure its more accessible and engaging nature.
If we pay attention to social networks, we'd realize that the fundamental focus of its development is to create an environment or platform that promotes ease for user interactions. The inclusion of “finance” does not take away that factor, and the nature of crypto assets and overall tech enhances the process of integrating both industries.
Funny enough, the recent wave of adoption, whilst having strong broad figures when it comes to the regions being on-boarded has drawn a great deal of “highly-valued” population, fancied by an extended list of marketers for the reasons of the sense of “inclusion and value” said regions feel towards brands.
SocialFi platforms leverage the power of community and social interaction to create value and engagement in the crypto space. Unlike traditional finance, which often feels distant and impersonal, SocialFi thrives on the active participation of users. This participatory model is not only more inclusive but also encourages a sense of ownership and loyalty among users, which is critical for sustaining long-term growth.
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If there's one thing I've learnt from marketing is that specific businesses and that's a lot of them, value traffic from poorer regions which happens to be the major audience of many SocialFi projects.
Reasons for this are numerous, to name a few: market size; most poor regions have huge numbers, what are the chances that a region with over 200 million people would not have at least 1 million loyal buyers to attract?
The second reason would be brand loyalty, which effectively means businesses tend to experience repeat purchases from consumers from these locations as they value great companies that offer good value for their money as they mostly lack them.
The third reason amongst a lot more I won't touch is “price sensitivity”. Now this is a good one and honestly speaking, when I read about this I was like “what the fuck?” but at the same time said “well, that's just genius”.
What about price sensitivity? Well, you see, poor people tend to spend a lot, even more than the rich. Obviously we are not talking about overall volume but rather, in percentage of their income. Also, because many of them want things that are beyond their reach for maybe social validation and all that.
As such, companies target these regions as there are high chances of them easily making a purchase and falling for baits like discount sales and campaigns to make a purchase for “potential” rewards.
With this region being on-boarded onto crypto, the target market is shifting to a new ecosystem and advertisers and businesses will have to adapt accordingly.
Telegram, being flexible and accessible has become the gateway for this great wave of on-boarding, and the sector at the forefront is “SocialFi”. Some may argue that it is actually “GameFi” as said apps are games, but I argue that they are largely social platforms with slight gamifications as bait to on-board, keep users engaged and scale the actual business from there.
Look closely at all these projects, the end product is being a large network for advertising a vast number of businesses.
And that's a good thing as crypto could use a steady flow of external value.
