The ‘cryptofluencer’ crisis is a marketing opportunity in disguise

If you fit a certain demographic profile, you likely don’t have to scroll far on social media for your algorithm to feed you content created by a “cryptofluencer”. “Cryptofluencers” are a subgenre of financial influencer, who earn their living by encouraging their audience to invest their cash in cryptocurrency, often as a way to get rich quick. 

Social media is at the heart of the crypto market: according to FCA research, almost a third of investors (29%) research cryptoassets on social before buying. But there’s a problem with the state of play. Our analysis at Adclear found that 9 in 10 (89%) of the most viewed social media posts promoting crypto investing aren’t compliant with financial promotion rules. 

This means social media is alive with users actively looking for advice on how and where to invest their cash. But it remains a wild west, with little credible content on crypto investing to be found. For brands marketing cryptoassets, there’s an opportunity to fill this gap with compliant, engaging content that both informs and wins the trust of prospective investors, at just the moment crypto gears up to go mainstream. 

The information gap 
Crypto is often thought of as a niche investment category that few genuinely understand. This isn’t unfounded: in a recent Forbes survey, only 34% of crypto investors could correctly describe cryptocurrency. Despite this, the market is growing fast, currently valued at $2.9 trillion. 

However a mature, stable investment market depends on a well-informed customer base. And it seems “cryptofluencers” are profiting from its popularity, without delivering on their side of the bargain. According to our analysis, more than half of posts (56%) across a range of social media platforms failed to disclose the risks involved with trading crypto. 30% failed to clarify that past performance isn’t a reliable indicator of future market outcomes, and one in ten (11%) went as far as guaranteeing returns.

Most of the compliance failures we uncovered aren’t deliberate attempts to mislead. Many are simple omissions, the kind that happen when creators aren’t aware of their obligations in the first place. In the UK, anyone communicating a crypto promotion has been subject to the financial promotions regime since October 2023, whether they’re a bank’s marketing department or a content creator on TikTok. 

It seems many of the people currently making the most engaging crypto content don’t know the rules. Regulated brands, however, do. 

An opportunity in disguise 
Crypto investors want information in the channels they already use, and regulated brands are well-placed to provide it responsibly. They have years of experience building and operating compliance infrastructure and established processes for adapting to new rules. They also carry the credibility that comes with being publicly accountable to a regulator.

For an uncertain first-time crypto investor looking for a reliable answer, this kind of credibility is worth its weight in gold. By reaching these investors whilst they’re still forming opinions, brands become the ones people associate with trustworthy crypto information from the start, building a loyal pipeline and community through owned content. 

But compliance isn’t a silver bullet. Shipping informative, compliant content quickly counts for nothing if it doesn’t resonate with audiences. In order to take full advantage of this opportunity, brands must combine their credible voice with the kind of content that performs well on social. 

That means clear explainers on the blockchain, accessible breakdowns of trading risks, and myth-busting posts about trending issues delivered in the tone and formats users are familiar with. Some brands may still choose to partner with creators directly. What’s critical is that in signing these partnerships, brands offer the compliance support many creators lack.

Now is the time to act 
Now is a pivotal moment because the market is maturing in real time. Most importantly for marketers, enforcement against non-compliant social media content is accelerating. The FCA has already brought criminal charges against financial influencers over illegal financial promotions, with social media flagged as a priority area for the regulator. This could soon leave a finfluencer content vacuum, which regulated brands have a chance to fill.

More broadly, cryptoassets are set to be formally regulated in the UK by October 2027, and the SEC is moving in a similar direction in the States. With formal regulation on the way, crypto is quickly graduating from fringe product to mainstream asset class.

This will bring a new generation of investors to court.  First-time investors will be on the lookout for trustworthy sources of information to help them get started. The brands that move fastest, producing clear and accessible content native to their social media channels, have an opportunity to convert the crypto-curious into loyal investors. 

Crypto’s move towards the mainstream is inevitable; a well-informed investor base is not. Every non-compliant post widens the knowledge gap, and every clear, compliant one helps close it. The brands that can produce compliant content consistently, approve it quickly, and drive engagement on their channels will build trust with new and existing investors. This groundwork is absolutely essential for shaping a healthier, safer and more compliant cryptocurrency market.