Crypto has an image problem. The complexity of blockchain technology and perceived clandestineness of crypto-related activity begets confusion and fear. A recent major media publication’s article about money laundering with crypto is the latest example of pandering to crypto fear. Crypto is, by its intended design, an alternative means of transmitting value. This naturally results in fear by the individuals and systems who are deeply embedded and dependent on the current status quo. As human beings, we are prone to neophobic tendencies. We fear what we don’t know and what we don’t understand. We fear things that threaten our security and power. It’s how we’re wired. As a result, fear appeal is a tactic to combat disruption. Politicians wield it, the media persists it and social interaction loudly echoes it in 280-character increments.
True to form, the publication’s article targeting a major crypto exchange’s role in the enablement of money laundering reads as well-researched and thoroughly investigated. And it was. To an unsuspecting reader unfamiliar with crypto or to a reader who already has preconceived stigmas, this article checked all the boxes of great reporting. It arguably wasn’t. In an attempt to shed light on a serious issue, one that drives a significant amount of risk mitigation resources within the crypto industry, the article made a convenient leap from a relatively insignificant amount of activity and a few cited bad actors to a condemnation of an entire industry as a “black hole” of illicit behavior. In the process, the article attempted to villainize one of crypto’s most recognized companies and established public figures. Referring to the company’s CEO as “pale and slender” and having made his fortune in gambling and fame in fringe libertarianism paints a picture of a villain plotting and wringing his hands in his dodgy “1980s-era office building” chalk full of “marijuana entrepreneurs.” The caricature is near comical. To a crypto-industry insider and someone who has first-hand knowledge of measures being taken to operate with integrity and earnestly meet the requirements of nascent regulatory oversight, the article is deserving of a heaving sigh and eye roll.
The article, however, isn’t bad for crypto. On the contrary, it signals loudly to the crypto industry that education and outreach is desperately needed. In response to the unfavorable presence in the article, the CEO of the exchange published a response via Medium blog post. It was an effective, morale-boosting rebuttal because he did three very important things 1) refuted fear with facts, 2) communicated complex ideas clearly and simply and 3) reiterated the mission of crypto. I attended a panel discussion recently called Designing Blockchain For The People as part of Denver Startup Week. The consensus of the panel was, regardless of whether you believe in the integration of crypto into traditional financial institutions or you gravitate to crypto because of its potential to equalize social injustices, marketing, education outreach and efforts to make crypto less enigmatic and more accessible is of growing urgency.
Crypto and blockchain technology is dense subject matter — not for the faint of heart. If you are a marketer, educator or effective evangelist in your respective industry and are looking for your next big conquest, this is your call-to-action. The crypto industry needs you. For those of us already in the industry there’s immediate work to be done, starting with outreach within our own communities. Look to your local colleges and universities as a place to start. Business schools and technology/engineering programs are hungry for information on blockchains and crypto. Because the industry is so rapidly evolving, colleges and universities may lack the most up-to-date knowledge on the subject and need help from the community in creating curriculum.
Local government is another important avenue. The Colorado Blockchain Council is a great example of the work being done to proactively forge working partnerships between the crypto/blockchain tech space and government. In your community, look for opportunities to engage. Invite representatives to visit your office, see what you’re about and encourage them to ask questions about crypto. I recently spoke with a candidate running for a state-appointed position who said she was “strongly against” taking crypto as a campaign contribution. When I asked her why, she said it’s because she didn’t want to take money from criminals. After I explained to her that there are ways to clearly establish the identity of a person, if that’s what is needed, she was much more receptive to the idea. In the absence of information and education, fear and uncertainty will persist and crypto will remain in the “black hole” of public opinion.