Crypto space is growing in popularity, there’s no doubt about it. Experts have predicted the markets to grow exponentially in the coming years, which opens doors of infinite opportunities for crypto companies.
However, it’s not just that the market is expanding in terms of the user base, but the competition is rising too. For instance, within the last decade over 1,600 cryptocurrencies have emerged in the market, which speaks volumes about the increasing competition. To tackle this, crypto companies are coming up with various promotional offers as part of marketing strategies, to attract investors on their platforms.
Following the suit, Binance, the world’s largest crypto exchanges, announced today a contest for giving away Binance Coin worth $250. The announcement comes on World Password Day, which seems quite relevant to an industry fully dependent on passwords. The contest was announced earlier today via Binance’s Twitter handle.
-Every 2 hours a clue is released
-Use clue to solve password
-Solving password unlocks 3 recovery phrases
-Collet 12 recovery phrases & restore wallet
-Claim $250 in $BNB!
CONTINUED BELOW? pic.twitter.com/7k6XP6St8H
— Binance (@binance) May 2, 2019
This, not the first time that the crypto exchange has announced a contest-based giveaway. Last month, Binance held a competition called My Binance, for innovatively recreating its logo, and gave away $500 in BNB. Also, earlier in March, Binance decided to $100,000 worth of Binance Coin to test its decentralized crypto exchange, Binance DEX.
Similarly, other companies have also been taking the route of giveaways for promotions. For instance, in late April, crypto wallet BRD announced a giveaway of Apple AirPods and Bose QuietComfort II, for users who transact $2,500 and $5,000 respectively.
In the latest contest by Binance, users will have to restore their wallets by changing the recovery phrases. The exchange stated that the users will get a clue on Twitter every two hours, which they will have to use to solve a password. On doing that, they will unlock three recovery phrases. Participants need to collect 12 such phrases to restore the Trust Wallet and claim $250 in BNB.
The clues will be rolled out by Binance Singapore, Binance Jersey, and Binance Lite (Australia) on Twitter. The Trust Wallet, a multi-chain crypto wallet application, is owned by Binance Holdings, and users will have to download it from their respective app stores to participate in the contest.
Contests like these keep the communities alive and active and give users an exciting chance to earn a few brownie points as well. However, what such competitions do is they wake up sleeping users, who hold cryptocurrencies on the exchange, but are not active traders. Market stimulation is exceptionally crucial for any crypto company, and marketing strategies like these are focused on doing just that.
Nonetheless, the crypto adoption is growing at a rapid pace, and across industries. Therefore, the giveaways the market is witnessing are not coming only from crypto companies. Seeing the expanding power of electronic money, money traditional companies have announced giveaways of Bitcoins and altcoins on various occasions.
In a time where the crypto companies are increasingly facing competition from the emergence of traditional companies like IBM, JPMorgan Chase, Facebook, Apple, etc, they have to find ways to retain their user base.