It's still a thing in 2025, surprisingly. Though many had called it dead, it has changed, transformed, adapted and arguably grown more menacing. Why? The reason being, the stakes are much higher, the regulators are monitoring more closely, and the audience isn’t buying into the same snake oil sales. And no, you can’t just pay some influencer with 500k followers to shill your garbage token anymore. Well, you can, but it'll likely cost you a lot more than just the influencer's fee. Picture this — fines, lawsuits, and a forever tarnished reputation.

Ignoring Regulatory Ticking Time Bombs

The Wild West days are over. Remember 2021? Seems like ancient history. The EU's MiCA regulations are in full swing, the FTC is breathing down everyone's neck, and frankly, ignorance is no longer an excuse. Now those once murky waters are as clear as day. The consequences for noncompliance are severe.

Think about it. You engage an influencer to help promote your project. They don't disclose it's a paid promotion. They make misleading claims about potential returns. They fail to mention the risks. Boom. You're both liable. Now you’re up against penalties that will eat away at your marketing budget and more. Equally at risk are influencers who engage in the same practices, up to and including lawsuits.

  • Risk Mitigation is Key: Due diligence is no longer optional, it's mandatory.
  • Legal Frameworks: Learn the rules. MiCA, FTC guidelines – know them inside and out.
  • Conservative Approach: Err on the side of caution. It's better to be safe than sorry.

This isn't just about avoiding fines, though. It's about building trust. Investors are a lot savvier than they were even a few years ago. They’re young and plugged in enough to sniff out a stupidity or scam from a mile away. Sticking to the hard rules of the road means you mean business, that you’re in it for the long haul. It sends a message to the market that you’re serious—that you’re not just another fly-by-night operation trying to make a quick buck.

Chasing Hype Over Genuine Alignment

Remember the ICO boom? With a little marketing gimmicking, anyone could just throw up a whitepaper, hire a celebrity to tweet it out and raise millions. Those days are gone. Today's crypto audience is more sophisticated. They want to see evidence of more of that real-world problem-solving, innovative utility and dynamic creative class in action. They’re not just interested in how much money they can make, they want to understand why your project is important.

That includes identifying influencers who truly resonate with your mission and whose followers fit your target demographic. It's not about finding the influencer with the most followers; it's about finding the influencer whose followers are most likely to become loyal users.

Imagine this. Say you’re starting a DeFi protocol where the farming is a lot more sustainable. You engage an influencer who specializes in meme coins and NFTs. Their audience isn't interested in sustainable farming. They’re only focused on short-term ROI and short-lived gimmicks. Your campaign will fall flat. You won’t just lose your money, you’ll tarnish your brand.

Rather than chasing after the biggest influencer out there, look for someone who cares deeply about environmentalism, blockchain technology, and community building. Your message will be better received by their audience, and you’ll create a more genuine connection with future users. Sure, it’s a president’s long-game strategy, but it’s the only smart strategy that gets into play in 2025.

Neglecting Long-Term Reputation Management

Crypto is a volatile space. Projects rise and fall quickly. Influencers can make or break a project's reputation. This is why having a plan ready to combat negative press or backlash is so important. What if the influencer you’re trying to emulate gets embroiled in a scandal? What do you do when your project runs into some criticism from the affected community?

To overlook or brush off these options is the equivalent of driving a new car without insurance. You may get away with it for a little while, but sooner or later someone is going to get killed. And if and when it does, you’re gonna be in a world of hurt.

  • Proactive Approach: Don't wait for a crisis. Have a plan in place before anything goes wrong.
  • Community Engagement: Listen to your community. Address their concerns openly and honestly.
  • Crisis Communication: Be prepared to respond quickly and effectively to negative press.

Think about the FTX collapse. Sam Bankman-Fried's carefully cultivated image crumbled overnight. The influencers who had hawked FTX were now being left high and dry, and they were all left scrambling to distance themselves. Some were successful, others weren't. The difference? Those who had built genuine relationships with their audience and who had a reputation for integrity were able to weather the storm. Those who came across as just shills were often publicly shamed and lost all professional respect.

The lesson is clear: reputation is everything. Make a commitment to develop your brand. Pick your influencers carefully and prepare to hit some bumps on the road ahead. The crypto space is unforgiving. One misstep can tank your return on investment — and your credibility. Don't let it happen to you.