The Full Guide to Strategic Fundraising with KOLs in the Crypto Space

Should You Do a Crypto KOL/Influencer Investor Round Before Launch

9 min read
Jan 28, 2024

Alright, so you're on the launchpad, ready to blast off with your shiny new crypto project. Now, you may have been hearing whispers (or maybe shouts) about crypto influencer marketing being the "it" way to spread the word. But hey, you're still scratching your head, wondering if it's the right move. Well, buckle up, because we're about to dive into a crash course on Crypto Influencer (KOL) Investor Rounds!

Think of it like a backstage pass to the glitzy world of crypto marketing. It's not just about blasting emails or posting random tweets; it's about getting the big guns – the influencers, the trendsetters, the movers and shakers of the crypto universe – to give your project a shoutout.

So, are you ready to roll the dice on a Crypto Influencer Investor Round before your big launch? Let's peel back the layers, explore what it really means, and figure out if it's your golden ticket or just another buzzword in the crypto scene.

What Exactly Are KOL Investor Rounds?

Before we begin, let's talk about Key Opinion Leaders (KOL) Investor Rounds - it's like having a backstage pass to the influencer and investor world, especially in the high-stakes realms of tech. These are the wizards of their domains, able to give a thumbs up or down to a company's big idea or shed light on the maze of public data.

Investor rounds are like your marketing campaign's secret sauce, helping you figure out just the right moment to bring each type of influencer into the spotlight. Think of it as a master chef deciding the perfect time to add each ingredient for a spectacular dish. With investor rounds, you get to map out the journey of your campaign, pinpointing the exact phases where micro-influencers, mid-tier mavens, or even the big-league influencers can make the biggest splash.

Their know-how isn't just helpful; it's gold for navigating the intricate pathways of project growth, community vibes, and making savvy investment choices. In short, KOL Investor Rounds are your all-access ticket to the wisdom of industry rockstars! Let’s explore some of the benefits and drawbacks you may experience should you choose to have an influencer investment round.

Benefits of Crypto Influencer Investments

From skyrocketing your project's visibility to building trust and credibility in a market that’s often viewed with a bit of suspicion - crypto influencers can change the tide of your project even in the worst circumstances.

These influencers have niche followers who hang onto their every word, perfect for targeting those genuinely interested in crypto. Plus, they're great at fostering a sense of community - crucial for the organic growth of your project.

  • Total Control: Ofcourse, the first obvious benefit is that you gain total control on who speaks about your project at each phase of your crypto marketing journey. This allows you (and your team) to influence your audience from the grassroots level. It also helps you branch out into each phase (or cycle) of your marketing plan with determined catalysts throughout the entirety of your campaign.

  • Boost Visibility: In the crypto world, standing out in a sea of projects can be challenging. Influencers (especially legitimate thought leaders), with their established followings, can put a spotlight on your crypto project. This quickly elevates projects from being unknown entities to a talked-about innovation. This visibility is crucial, especially during initial stages or major developments when capturing market attention is vital.

  • Build Trust and Credibility: Trust is the cornerstone in the volatile realm of crypto. A recommendation from a respected influencer carries weight, assuring potential investors and users of the legitimacy and potential of your project. In an industry where trust can be a make-or-break factor, having influencers vouch for your project can significantly enhance its credibility.

  • Targeted Audience Reach: Crypto influencers usually cater to a niche but highly engaged audience interested in blockchain and crypto. Every crypto influencer has different outlooks on the tech. You must carefully align your goals to the right influencers to reach your core target audience. By partnering with these influencers, your project can directly reach an audience that is already educated and interested in crypto, leading to more effective and efficient marketing efforts compared to broad, non-specific advertising strategies.



  • Enhance Community Engagement: The success of a crypto project often hinges on the strength of its community. Influencers can be pivotal in building and nurturing this community. They not only promote your project but also engage in discussions, clarify doubts, and create a loyal follower base. Catering to a legit community gives you long-lasting legwork for the length of your entire crypto journey. The community can become a vital support system for your project, providing feedback, testing new features, and even advocating on your project's behalf throughout the entire crypto scene for years.



  • Market Insights: Crypto influencers are usually well-versed in the trends, shifts, and nuances of the market. By collaborating with them, you can gain valuable insights into market dynamics, investor sentiments, and user preferences. This information can be instrumental in fine-tuning your project's approach, ensuring that it not only meets market demands but also stays ahead of the curve. In other words, with the right people supporting your project, even a bear market becomes bearable (pun slightly intended).

Risks of Crypto Influencer Investments

Here are some key risks associated with crypto influencer marketing and how to navigate them:

  • Regulatory Challenges: The world of crypto is fraught with rapidly changing and varied regulations across different countries. This complexity makes it challenging to create consistent and compliant marketing strategies. For instance, some countries may have strict rules about promoting crypto products, which influencers must adhere to avoid legal complications. It's essential to stay on top of these regulations and ensure that all influencer content is compliant.



  • Trust and Credibility Issues: In the world of crypto, trust can be a double edged sword. Establishing trust in the volatile and often speculative world of crypto is a struggle for most. Many consumers view crypto as an unstable investment, and influencers themselves might be skeptical about promoting crypto brands due to past incidents (e.g., the FTX collapse). To build trust, it's crucial to partner with influencers who genuinely believe in your project and can authentically engage their audience. Transparency and authenticity in promotion are key to overcoming skepticism.



  • High Costs and Limited Availability of Influencers: Well-known crypto influencers are in high demand and can charge premium rates for their influence, which can strain marketing budgets. Additionally, the pool of credible crypto influencers is relatively small, which may limit your options. Diversifying your influencer partnerships beyond just crypto-specific influencers to include those in related fields (like tech or finance) can help mitigate this.

  • Perception of Overpromotion: They say too much of anything is not a good thing, and that statement proves true even in crypto. Many influencers in the crypto space may have multiple brand collaborations, which can lead to their content being perceived as overly promotional and less genuine. This can diminish the effectiveness of influencer campaigns. To counter this, look for influencers who are selective about their partnerships and prioritize long-term relationships over one-off promotions.



  • Challenges in Finding the Right Influencers: Identifying influencers who align with your brand’s values and have the right audience can be challenging. The effectiveness of influencer marketing relies heavily on this alignment. Crypto influencer marketing agencies make it easier to find and vet potential influencers. Attend industry events and engage with online crypto communities to discover influencers who are respected and active in the space.

Conclusion

Navigating the dynamic terrain of crypto influencer marketing presents a unique blend of opportunities and challenges. On one hand, it offers a powerful platform for crypto brands to amplify visibility, build trust, and engage directly with a targeted audience, thereby propelling projects from obscurity to prominence in a densely populated market. Influencers, with their deep market insights and established community trust, can translate complex crypto concepts into relatable content, fostering community growth and loyalty.

On the flip side, this marketing strategy is fraught with obstacles, including navigating the complex web of ever-evolving global regulations and combating skepticism from an audience wary of the volatility and past controversies in the crypto space. The scarcity and high cost of reputable influencers, coupled with the risk of their endorsements being perceived as inauthentic due to multiple collaborations, further complicate the picture.

Thus, while crypto influencer marketing holds immense potential for driving growth and innovation, it demands a strategic, well-informed approach, balancing the pursuit of market influence with the need for authenticity, compliance, and community trust.

Tim Haldorsson
CEO
CEO of crypto and Web3 marketing agency Lunar Strategy, involved in the crypto scene since 2017. Provides forward-thinking Web3 marketing insight as a contributor to Cointelegraph, Rolling Stone, Daily Coin, NFT Plazas, and Finance Magnates.
Jack Haldorsson
CMO
CMO at Lunar Strategy. Been in the crypto space since 2017. Jack leverages his know-how of the blockchain ecosystems and strong KOL relationships to execute result-focused strategies that amplify brand storytelling, drive awareness and grow the project sustainably with the help of Influencer relations.
Adam Westerén
Head of Sales
Adam's passion is to create self-sustainable communities in the Web3 world. He enjoys when you create a Web3 community that can grow by itself. This is what he does in his current role as Head of sales.
William Rejström
COO
As a Community Manager at Lunar Strategy, I'm passionate about finding new ways to connect people, add value and build strong community relationships.
Shann Holmberg
COO
As head of growth at Lunar Strategy, I understand the significant shift away from traditional marketing strategies that Web3 projects require.
Nick Ballanutsa
Crypto Content Creator
Crypto Content Creator, Nick is creating engaging Twitter threads & posts for leading crypto & NFT companies.
Vide Haldorsson
Influencer Manager
Influencer Manager at Lunar Strategy.
Johnny Pedro
Head of Partnerships
Head of Partnerships at Lunar Strategy, creating win-win solutions for Web3 companies. You might have heard his music on Tomorrowland from his previous ventures in the music industry.
Jarrod Frankel
Head of Community
Jarrod is responsible for the teams that provide both engaging social media content and enticing and informative articles for our clients.
Tayler McCracken
Editor at Coin Bureau
Tayler McCracken is the Editor-in-Chief of the Coin Bureau, a leading publication that provides cryptocurrency education.
Vineet Nair
Writer
As a web3 storyteller, Vineet brings a wealth of experience in content, journalism, and management, with hands-on knowledge of metaverses, NFTs, AI, and finance.
Hassan Shafiq
Lunar Strategy
Lunar Strategy.
Mairead Finlay
Writer
British writer specialising in NFTs, luxury lifestyle & travel based in Portugal. Previous publications include Business Insider, LoveEXPLORING, The Guardian and My French Country Home Magazine. Previously the SEO Editor of tech & startup website TechRound.
Sandra Vukovic
Content & Marketing Specialist
Content & Marketing Specialist at Lunar Strategy.
David Kevin Jeppesen
Lunar Strategy
Raised in the spring of technology, solving problems and finding simple digital solutions is part of my nature. I’m a teachable individual who is always eager to learn and develop as a person.
Julieta Ose
Crypto Content Creator
Crypto Content Creator at Lunar Strategy.
Gino De Graaf
Google Ads Specialist
Google Ads Specialist at Lunar Strategy.
Sam Runge
Media Manager
Lunar Strategy.
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