If the bear market persists, crypto terms will become dirty words

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Over the years, focusing on your business can be as simple as adding the word crypto-y to your name or mentioning new cryptocurrency-related initiatives.

In 2017, Long Island Iced Tea Corp. Long Blockchain Corp., which has increased its shares since the company’s infamous decision. from rebranding as Web3 to large companies promoting NFT (non-fungible token) initiatives has been a surefire way to make noise. shout about your crypto.

But now, in the midst of a year-long bear market, even bitcoin miners, who continue to play a central role in powering the biggest cryptocurrency, are shying away from cryptographic buzzwords. It’s a sign that the scandals and huge investment losses have taken their toll, and shows that crypto has a lot of work to do before it enters the mainstream.

“There is a desire among companies to avoid the cryptocurrency bubble of the last two years,” said Chris Brendler, an analyst at DA Davidson. “It makes it easier to deal with traditional financial institutions.”

Read more: SEC charges 3 people with insider trading on Long Island Iced Tea blockchain.

The cryptocurrency naming problem is particularly acute for cryptominers, as they require a lot of capital and therefore have to rely on outside investors. Some of them have dropped “blockchain” from their names. For example, Riot Blockchain Inc., one of the largest bitcoin mining companies, went public last week. changed its name to Riot Platforms Inc. (RIOT) and called itself an “increasingly diverse business”. Its shares are down 75% in 2022.

Applied Blockchain Inc., a miner and data center operator, acquired Applied Digital Corp. in November. (APLD) was. “The company’s updated name more accurately reflects its broader mission, services and business offerings to serve customers who require massive amounts of computing power for applications,” he said in a statement. Its shares have fallen 92% in the past year.

Miners aren’t the only ones who express displeasure with cryptographic terminology. This week, the head of one of the world’s largest cryptocurrency trading firms, Jump Crypto, tweeted about the possible need to ditch some key terms.

“Cryptocurrency and smart contracts have taken the industry back a bit,” said Kanav Kariya, president of Jump Crypto. tweeted. “How can we incorporate new terms that make it clear to people that most tokens are not currencies and that network programs/apps are not legal contracts?”

The words cryptocurrency and smart contracts have set the industry back a bit.

How can we incorporate new terms that make it clear to people that most tokens are not currencies and that network programs/apps are not legal contracts?

— Kanav Kariya (@KanavKariya) January 8, 2023

At this month’s CES 2023 tech show in Las Vegas, panelists in various sessions expressed interest in the potential of the metaverse, but less interest in industry terms.

Brian Weiner, CEO of entertainment industry advertising and marketing company The Illusion Factory, said he is moving away from the term “NFT” and instead uses “digital collectibles” because of the negative impact. Related to NFTs. He said he spoke to a panel where the term “NFT” was described as “de-jargonizing” the technology and focusing on the experience rather than how it works.

At another CES panel titled “Metaverse Media Leadership,” Paramount Global futurist Ted Shilowitz said that while he’s “very good and very enthusiastic about Web3, the fundamentals of blockchain,” he’s been “negative about metaversal terminology” so far. Neil Stevenson, who coined the term, “agrees [that] terminology has replaced the reality of what is happening.

Toby Bochan contributed reporting to this story.

The views and opinions expressed herein are those of the author and reflect those of Nasdaq, Inc.

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