'Crypto Instagram' Is Becoming a Thing, Scams and All

Published on by Coindesk | Published on

The same type of crypto scams that plague Twitter are running rampant on Instagram in 2020.For example, there are more than 1.3 million Instagram posts using #Coinbase, an overwhelming number of which display inauthentic behavior.

Coinbase declined to comment on any past influencer campaigns, with the short statement: "We don't have an active influencer campaign right now." Instagram isn't tackled specifically in the company's blog post about social media scams.

Instagram spokesperson Raki Wane told CoinDesk "The accounts were taken down unintentionally, when the mistake was discovered we overturned."

There are many authentic influencer accounts doing giveaways on Instagram as part of their COVID-19 marketing strategies.

Despite this climate, Instagram still does provide an important networking platform for the crypto industry.

He said he uses Instagram to both "Show pictures of my family and to publish updates about our product." He said he interacts with product users via Instagram at least once every few weeks, especially when his startup launches a new feature.

Another crypto company operating in Brazil, the Abakus Group-supported exchange Novadax, shows how startups leverage Instagram for customer relations during COVID-19.Chinese investor turned Novadax CEO Beibei Liu said thousands of Brazilians used her exchange to buy bitcoin for the first time over the past few months.

"We do a lot of basic educational content on Instagram," Liu said, adding they also do Instagram Live sessions to answer user questions.

Even for the minority of professional traders using the platform, such as Portugese-speaking liquidity providers in Europe or the United States, Instagram marketing helps the startup establish trust.

Speaking to the global dynamics of Crypto Instagram, where some users struggle to identify authentic accounts, Siegel said she hopes Instagram "Will create a new model for a more active effort to protect their users."