Cryptocurrency businesses have started solving the trust issue
One of the most criticized aspects of the cryptocurrency industry is the lack of trust for businesses and services in this space. Due to lack of regulations, the industry has been plagued with scams and low-quality businesses. This has caused much harm in the reputation of cryptocurrency and caused many newcomers to shy away from this news and upcoming industry.
Internet in 90s
It’s hard to imagine now but the early days of the internet were like the cryptocurrency industry of today. There were very few transactions taking place, and the industry was plagued with scams and untrusted information everywhere.
Today internet is the livelihood of many growing economies. Transactions on the internet range from purchasing a good to sending money online. But in the 90s the public was skeptical about it.
One of the biggest reasons for the adoption of the Internet in the late 90s was trust. On the initial days of the Internet, people were afraid to give their credit card information. This fear was increased with stories of unidentified charges on their card floating around.
It’s only with the fair business practice of Amazon, eBay and Paypal who focussed on proper communication with their customers did the consumers trust online purchases. These businesses were responsible in a way of creating the Internet of today.
Trust in Cryptocurrencies
One of the biggest drawbacks in the cryptocurrency industry is lack of focus on the customer service side. Users sometimes have to wait for a few hours to a couple of days to get answers for their queries. In fact, Coinbase one of the most popular exchange in the US has been criticized for their lack of instant customer support.
Cryptocurrencies and blockchain technology provide the users with complete control of their finances instead of them relying on banks. But what happens if the businesses serving the cryptocurrency industry start behaving like banks? That means slow response rate, to unauthorized freezing of the funds, etc.
To add more trust issues, the traditional banking sector has refused to serve the cryptocurrency industry causing the industry to be plagued with scams. This lack of trust has halted many newcomers from entering the cryptocurrency industry.
And the future of the industry lies in these newcomers..!
Many businesses in the cryptocurrency industry have recognized the trust problem and have started solving it. Local exchanges across the world such as CoinDCX and Future1Exchange are looking at providing the best customer service to gain users trust. While major exchanges such as Binance have a very active social media team to assure people that the funds are safe.
“At CoinDCX, we are responsible for funds of our patrons. Our patrons believe that we’ll help them provide security of funds, honest and transparent dealings and greater opportunities to excel in their trade. These three sentiments constitute for us the pillars of trust. We are constantly striving to achieve this balance.”, says Sumit Gupta the founder of CoinDCX.
Binance is a good example of how the founders are using social media to gain the trust of the people. The founder CZ is always active and always responds to any concern or queries raised. One example would be when Binance was hacked and 7000 Bitcoins were stolen. CZ was constantly updating investors regarding the situation and also wrote a blog post explaining everything.
Not just exchanges, but blockchain projects have also realized the trust issue and have started campaigns to assure investors of work in progress.
Arcblock, the interoperability blockchain from Seattle, recently announced a joint partnership with Microsoft China for providing blockchain solutions to the firm’s Azure customers. This built more trust with the investors about the partnership taking place.
Joint announcements are becoming quite common these days, as they provide authenticity to the announcements. Blockchains are relying on partnership and media announcement to win back investors trust as well as help new people join the industry.
The marketing industry has also seen maturity among their tactics. Gone are the days of unlikely claims such as “Double your money in a few months” too much more realistic claims.
It is good that the industry has started to identify the problems have started dealing with them. But the problems of scams still remains. But as the industry matures, the days of gold rush get over and regulations come, we will see a drastic increase in the number of new users.
Until then, the businesses solving the trust problems will lead the way into the future.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
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