The digital currency craze is leading to a slew of new media companies that aim to win market share as interest in cryptocurrencies grows. According to a recent report by U.S. crypto exchange Gemini, 14% of the population owns cryptocurrencies such as bitcoin and Ethereum. The report further found that 13% of respondents intend to purchase digital assets in the next year. Online searches for information about crypto are also on the rise. This is creating an opportunity for media companies to generate more ad revenue.
The risk these media companies faced for a long time was that the crypto market could dissolve at any time. But with the growth in ownership of cryptocurrencies, that doesn’t seem likely to happen soon.
In the meantime, crypto media firms have to contend with running a new business in an events industry largely depleted by the pandemic. While virtual events still exist, the revenue from ticket sales and sponsorships is not nearly as significant, industry observers said.
Crypto media companies also have to compete with social media platforms that have consumed most of the ad revenue that used to flow to news companies. Ben Schiller, a managing editor at CoinDesk, told Fortune that crypto media firms have to compete with these platforms not only for money but for clout and attention.
Like in the mainstream tech industry, many of the influential crypto leaders typically turn to platforms like Twitter and Medium to get their message out, rather than use media outlets as intermediaries, Schiller said.
One thing they don’t have to worry about in the short term is market growth. The market valuation for cryptocurrency is projected to cross $1.8 billion by 2027, according to Global Market Insights. The growing demand for digital assets and secure transactions is expected to contribute significantly to market growth, the firm said.
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