Study: Crypto Traders Trust Little-Known Exchanges Over Heavyweights

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Smaller, lesser-known cryptocurrency exchanges may have a leg up when it comes to how much traders trust them, according to a new study.

The study, commissioned by artificial intelligence-driven marketing specialist BlueOcean, analyzed more than 1,110 data sources via artificial intelligence algorithms.

It audited eight brands: Coinbase, Binance, Gemini, Kraken, FTX, SoFi, Robinhood and eToro — seeking to quantify factors such as “familiarity,” “uniqueness,” “consistency,” “relevance” and “reverence.”

Coinbase and Binance — two of the world’s most established and well-known exchanges — to no surprise ranked highest on familiarity, but lowest of the group on consumer trust. FTX and soFi, meanwhile, were the least familiar of the group, but were marked as the most revered, or trusted, by their customers.

“Exchanges once competed for early adopters, and now they must compete for the early majority – a group that is ripe for brand discovery and loyalty – and often associated with positive brand sentiment and ease of product use,” said Grant McDougall, CEO and co-founder of BlueOcean. “Being familiar may get you in the door, but it may not be enough to be sustainable.”

Kraken scored high points on consistency, a factor driven in part by the “breadth of concepts and subject matter shared socially,” according to the study. Its findings suggest that clear, consistent messaging is one key to winning the trust of consumers.

“To keep pace and stay competitive, brands like Coinbase, eToro and Robinhood could consider ramping up content consistency to show personality congruity across their digital and social platforms,” McDougall said. “In order to really gain market share, brands will ultimately need to differentiate, specialize and commit to consistency.”

Gemini and FTX received the highest marks in the “uniqueness” category, which in the study corresponds to the company’s ability to help traders easily grow their crypto portfolios.