Encouraging the Adoption of Cryptocurrency in the Russian Market

The Rise of Cryptocurrency in the Global Market

Since its emergence in 2009, cryptocurrency has become one of the most controversial digital assets in the global financial market. With growing interest in this new form of currency, experts hold varying opinions, primarily influenced by market fluctuations, economic shifts, and political changes.

An intriguing development in 2017 was the introduction of non-fungible tokens (NFTs), which gained popularity among art collectors and enthusiasts worldwide. According to the analytical platform Chainalysis, investors engaged in cryptocurrency transactions worth at least $44.2 billion in ERC-721 and ERC-1155 contracts associated with NFT trading platforms and collections in 2021. Meanwhile, Russia began witnessing an upswing in interest in the crypto ecosystem from 2021 onward. Inna Bazhenova, co-founder of The Art Exchange—an art investment platform—revealed in an interview with Izvestia that Russian users accounted for approximately 5% of the NFT market, a noteworthy proportion given the total global investments in NFTs.

Another promising avenue for cryptocurrency utilization lies in decentralized online gaming (GameFi), where users can generate real profits. In these games, crypto-assets are owned by the users themselves and stored on personal blockchains, while gaming rewards can be auctioned directly on the gaming platform.

Furthermore, notable brands have embraced cryptocurrencies as a means of payment. For instance, renowned companies such as Rolex, Gucci, and Alienware now accept Bitcoin as a valid form of payment. Additionally, crypto-investors have significant opportunities to invest in real estate.

The interest in cryptocurrency, particularly among the Russian audience, is driven by the potential for earning profits and promising investments. According to the Central Bank of Russia, rough estimates suggest that Russian citizens conduct approximately $5 billion worth of cryptocurrency transactions annually. Moreover, Russian consumers stand out as some of the most active users of online platforms facilitating cryptocurrency transactions.

Given this backdrop, where do Russian investors typically purchase cryptocurrency?

Exploring Crypto Trading Platforms and Advertising Opportunities in the Russian Market

The crypto industry boasts an array of over 300 trading platforms, as reported by CoinMarketCap, each offering a diverse range of crypto products. Notable platforms catering to the Russian audience include Quantum AI, Capital.com, Binance, and Libertex.

These services vary in functionality and features. Quantum AI provides interest-free trades, robust currency security measures, and guidance for novice investors. However, it does require a high minimum deposit of 220 Euros.

Capital.com stands out with its extensive selection of over 3,000 markets for various cryptocurrencies within the CFD system. It offers interest-free transactions and a more accessible minimum deposit of $20.

Binance, known for its proprietary BNB cryptocurrency, offers a range of trading options such as BTC/USDT, BTC/ETH, and micro-cap markets. The platform ensures fund protection through two-factor authentication, trusted IP/device lists, and backup SAFU insurance in case of security breaches. Unlike the previous platforms mentioned, Binance does charge commissions based on the region and type of transaction, making it suitable for active investors engaged in frequent currency transactions.

Libertex provides investors with lending opportunities, referred to as “2:1 leverage.” Users can buy cryptocurrency with a partial payment, paying the rest at a later specified time. Negative account balances are safeguarded by certificates from the Cyprus Securities and Exchange Commission (CySEC). The minimum deposit on Libertex is 100 Euros.

With a wide range of products available, the potential audience in the crypto sector has ample choices. Consequently, effectively promoting cryptocurrency becomes a pertinent consideration for numerous sites, brokers, and market participants.

Particularly in the Russian market, advertising campaigns face challenges due to the inaccessibility of popular platforms like YouTube, Facebook, and Instagram, which are owned by Meta and were deemed extremist organizations in Russia in 2022.

To overcome these restrictions, QB Agency experts recommend exploring alternative social networks that offer favorable opportunities for promoting crypto products in the Russian market. It is important to note that cryptocurrency advertising is officially allowed in Russia, except when it serves as a means of payment for goods and services (as outlined in the Law “On Digital Assets”). In all other cases, advertising content can be freely disseminated across various platforms. Let us delve deeper into this matter.

Telegram: A Powerful Platform for Cryptocurrency Advertising

In 2021, cryptocurrency advertising emerged as the most expensive form of promotion on Telegram, as revealed by Telega.in, the largest channel exchange. It also ranked third among thematic categories in terms of advertising turnover. This increase in value can be attributed to the soaring capitalization of the crypto market, which grew threefold to $2.22 trillion, and the unique characteristics of Russian legislation in this sector.

The effectiveness of Telegram as a platform for cryptocurrency advertising can be attributed to several factors. Firstly, unlike platforms such as Facebook and Instagram (which are currently classified as extremist organizations in Russia), Telegram imposes no restrictions on promoting cryptocurrency products, apart from the prohibition on using it as a means of payment for goods and services. Unlike these platforms, Telegram does not require advertisers to obtain one of the 27 international licenses for currency before publishing content.

Secondly, Telegram offers a range of tools for broadcasting advertising content. Advertisers can engage in paid integration with popular Telegram channels focused on cryptocurrencies or set up targeted advertising campaigns based on various characteristics of the target audience, such as language, country, and key interests.

Furthermore, the Telegram audience represents a significant potential consumer base for cryptocurrency products. According to Karen Kazaryan, Director General of the Internet Research Institute, Telegram subscribers are often young and tech-savvy individuals, including many IT specialists. These characteristics, combined with a well-executed marketing strategy and expertly crafted content, contribute to high conversion rates.

In summary, Telegram is a popular platform for promoting cryptocurrency products. It offers various marketing approaches and imposes minimal restrictions on crypto advertising, making it an attractive choice for advertisers. However, due to the intense competition for advertising space on the platform, including within the cryptocurrency sphere, it is advisable to consider alternative promotion services available in the Russian market.

Yandex.Zen: A Growing Platform for Cryptocurrency Advertising

In 2021, Yandex.Zen introduced a creator support program, enabling users to monetize their content. This initiative has captured the interest of many Russian users. By September 2021, the platform had amassed a monthly audience of 22.2 million users aged 12 and above, as reported by Mediascope. The developers are confident that the introduction of new monetization tools will position Zen as a formidable competitor to popular social networks like Telegram, YouTube, TikTok, and VKontakte.

The appeal of Yandex.Zen extends beyond the potential for earning through content creation. The platform allows users to establish their own channels, encompassing videos, articles (up to 4,000 characters), images, and more. Moreover, the content can be categorized and filtered based on its type.

Regarding advertising cryptocurrency products on Zen, it is officially permitted, albeit with certain restrictions that apply to any advertising related to the financial sector. Specifically, it is strictly prohibited to:

Guarantee quick earnings. Make claims about successful transactions and income growth. Reference success stories. Assert that cryptocurrency transactions are risk-free.

Advertisers seeking to promote cryptocurrency products on Zen must possess the necessary documents and licenses permitting cryptocurrency activities such as mining, dealing, and brokerage.

Once all requirements are met, an advertising campaign can be launched. However, the nature of the campaign should be more advisory and news-oriented, considering the imposed restrictions. Consequently, great emphasis should be placed on the level of content expertise, similar to integration with Telegram.

Like other social networks, Yandex.Zen offers various marketing integration options. The first approach involves promoting content based on its popularity and effective targeting. Targeting can be conducted manually, specifying parameters such as gender, age, devices, and regions, or by utilizing an automatic algorithm designed to identify interested audiences on other channels.

The second method involves paid integration with selected Zen channels. Presently, the platform boasts a considerable number of cryptocurrency-focused channels, including popular ones like CryptocurrencyInvestmentsTrading, Bankiros.ru, and 2Bitcoins.ru.

Both approaches have their pros and cons. In the first case, advertisers do not have the ability to select specific Zen channels as the system integrates advertising based on target audience parameters. In the second case, arranging paid integration with other channels requires time and effort, without a guarantee of a positive response.

On the other hand, the competition on Yandex.Zen is relatively lower compared to other platforms, as it is still in the early stages of developing its advertising capabilities. This presents promising prospects for attracting potential audiences by implementing a well-crafted marketing strategy and delivering high-quality content. Particularly for cryptocurrency products, advertising campaigns can be creatively broadcasted across various Zen formats, leveraging the unique characteristics of this platform.

VKontakte: Embracing Blockchain and NFTs for Cryptocurrency Advertising

Following the global crypto trends, VKontakte, a popular Russian social network, has ventured into supporting blockchain services and more. According to Aleksander Tobol, the technical director, the platform has plans to integrate successfully into the NFT (Non-Fungible Token) space.

“With the emergence of platforms and blockchain, there is a need to collect and deliver this product history to users. This is exactly our task: to provide the ability to upload content, easily create NFT tokens, and then list them on exchanges,” said Tobol.

VKontakte allowed cryptocurrency advertising in 2017, setting minimum requirements for promoting financial services. The guidelines emphasize the importance of reliable and responsible advertising, discouraging baseless guarantees and misleading promises of quick and passive earnings. Claims of getting rich through cryptocurrencies or suspicious success stories are strictly rejected, in adherence to VKontakte’s advertising rules.

Unlike some platforms, VKontakte does not require additional certificates or licenses for cryptocurrency activities. However, in line with the financial sector’s characteristics, the platform administrators do ask for the name of the person providing the services. Once the requirements are met, advertisers can utilize targeted advertising or integration with communities to broadcast their content.

VKontakte, like other social networks, provides various avenues for conducting cryptocurrency advertising campaigns. The platform’s market platform, an internal service, assists in finding suitable communities for campaign integration. Targeted advertising can be placed in different areas of the site, accompanied by buttons to redirect users to external sites or in other engaging formats. The targeting options encompass a wide range of indicators, including geographical (country, city), demographic (gender, age, marital status), and interests (interests, communities, activities). Additionally, a retargeting function is available to capture an audience already engaged with the advertiser on other resources.

Moreover, VKontakte offers advertisers the opportunity to create a store within the platform, featuring brief descriptions of benefits and facilitating quick transactions. This feature can be effectively utilized in the cryptocurrency realm to promote exchanges, applications, training courses, and direct cryptocurrency sales within the platform.

In Conclusion: Promoting Cryptocurrency in the Russian Market

Despite the specific restrictions surrounding the advertising of financial products, successful promotion of cryptocurrency can be achieved on popular social platforms such as Telegram, Yandex.Zen, and VKontakte.

These resources offer a wide range of marketing tools to ensure targeted and effective campaigns. However, it is crucial to consider that cryptocurrency advertising is most impactful when it demonstrates a high level of expertise and comes from a credible source. The target audience, particularly those interested in financial products, tends to respond favorably to content in the form of advice and tends to be wary of intrusive advertising on social networks.

If you require assistance in navigating these intricacies and developing a competent advertising strategy to promote your cryptocurrency product in the Russian market, QB Agency experts are available to provide their expertise and guidance.