FTX collapse has raised security and reliability concerns for Web3 projects, marketing expert says – Interview Bitcoin News

The fallout from the collapse of failed crypto exchange FTX is forcing Web3 brands, and projects that previously focused on managing public perception, to concentrate on fighting for their legitimacy, Laura K. Innamedinova, a Web3 marketing expert, has said. In addition to simply trying to convince backers and investors, Inamedinova said Web3 players have the more formidable task of convincing regulators.

Security and reliability issues resurface

After starting the year with a focus on community management and public perception, the fallout from FTX’s collapse saw many Web3 brands and projects move to argue for their legitimacy and reputation, founder of Web3 marketing agency Laura K. Inamedinova has said. She added that even in cases where there is no direct connection with FTX, Web3 contractors now feel compelled to raise concerns about the security and reliability of their projects.

In addition to their efforts to allay the fears of jittery investors and backers, Innamedinova, founder and CEO of LKI Consulting, said Web3 players have an even more formidable task of convincing regulators. She added that this also applies to projects supported by traditional brands.

“Even for completely legitimate businesses and projects, this has been a huge blow to their reputation. After the FTX fallout, we can expect a new round of global regulations and more attention to security and project credibility than ever before,” Inamedinova said.

For large companies like Starbucks or Nike, which recently started their metaverse projects, the collapse of FTX has rekindled trust issues that took years to overcome. According to Inamedinova, events in recent months mean that it will likely require more time and resources “to prove to the mass audience that blockchain can be trusted.”

The disastrous handling of FTX’s collapse

Meanwhile, when asked about the roles of Sam Bankman-Fried (SBF) and others in handling the crisis from a PR perspective, Inamedinova told Bitcoin.com News that the whole episode has been a disaster, noting:

From the initial crash to his series of poorly worded tweets to everything afterward, it was a disaster from start to finish.

Regarding the SBF’s trial and the court’s likely long-term impact on the crypto and blockchain industry, the PR expert suggested that much will likely “depend on how the actual prosecution is going to play out and appear in the media.” She said that if the process is done correctly, “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, Innamedinova said they should implement “maximum transparency in their Web3 projects.” Doing so is especially important now when a lack of oversight and regulation can result in losses running into billions of dollars, Innamedinova added.

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Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, writer and author. He has written extensively about the economic problems in some African countries, as well as how digital currencies can provide Africans with an escape route.