FTX Collapse Has Rekindled Security and Reliability Concerns for Web3 Projects Says Marketing Expert 
The fallout from the collapse of failed crypto exchange FTX is forcing Web3 brands, and projects previously focused on managing the public’s perception, to concentrate on fighting for their very legitimacy, Laura K. Inamedinova, a Web3 marketing expert, has said. Besides just trying to convince backers and investors, Inamedinova said Web3 players have the more formidable task of convincing regulators.
Security and Reliability Issues Resurface
After initially starting the year focused on community management and the public’s perception, the fallout from FTX’s collapse caused many Web3 brands and projects to switch to arguing for their legitimacy and reputation, Web3 marketing agency founder Laura K. Inamedinova has said. She added that even in cases where there is no direct connection with FTX, Web3 entrepreneurs now feel compelled to address concerns about the security and reliability of their projects.
In addition to their attempts to assuage the fears of nervous investors and backers, Inamedinova, the Founder & CEO of LKI Consulting, said Web3 players have an even more formidable task of convincing regulators. She added that this also applies to projects backed by traditional brands.
“Even for perfectly legitimate businesses and projects, this has been a huge blow to their reputation. Following the FTX fallout, we can expect a new round of global regulations and more attention to security and projects’ credibility than ever before,” Inamedinova said.
For large corporations like Starbucks or Nike, which only recently kickstarted their metaverse projects, the collapse of FTX has rekindled trust issues that took years to overcome. According to Inamedinova, events in the past few months mean it will likely require more time and resources “to prove to mass audiences that blockchain can be trusted.”
The Disastrous Handling of FTX’s Collapse
Meanwhile, when asked about Sam Bankman-Fried (SBF) and others’ roles in handling the crisis from a public relations perspective, Inamedinova told Bitcoin.com News that the whole episode has been a disaster, noting:
From the initial crash to his series of badly phrased tweets to everything after, it was a disaster from beginning to end.
Concerning SBF’s trial and the court outcome’s likely long-term impact on the crypto and blockchain industry, the PR expert suggested that a lot will likely “depend on how the actual prosecution is going to play out and appear in the media.” She said if the process is carried out properly the “verdict will be fair.” However, there is a possibility that the process “will be dragged out.”
To traditional brands trying to navigate away from the crisis, Inamedinova said they should implement “maximum transparency in their Web3 projects.” Doing this is especially important now when the lack of oversight and regulation can result in losses that run into billions of dollars, Inamedinova added.
Tags in this story Crypto regulation, ftx, FTX Sam Bankman-Fried, Laura K. Inamedinova, LKI Consulting, Metaverse, Nike metaverse, sbf, Starbucks Web3, Web3
What are your thoughts on this story? Let us know what you think in the comments section below.
Terence Zimwara
Web3 Applications Will Increasingly Be Built on Custom Blockchains, Says Ankr’s Head of Product INTERVIEW | 1 day ago 
Relying on Centralized Databases Makes Dapps Vulnerable to Data Tampering Says Nate Holiday INTERVIEW | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Previous article
Capgemini: Nine out of Ten Consumers Interested in the Metaverse
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
Ripple CEO: SEC Lawsuit Over XRP ‘Has Gone Exceedingly Well’
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP “has gone exceedingly well.” He stressed: “This case is important, not just for Ripple, it’s … read more.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing