A comprehensive analysis of FTX's marketing journey: How to increase valuation from 7 million dollars to 32 billion dollars in 3 years

Original: Web3 Marketing Case Study: How FTX Scaled from a $7M to $32B Company in Just 36 Months

Written by: Joydeep Bhattacharya

Translated by: Misaki, Diamond, WhoKnows DAO

FTX is a cryptocurrency exchange with an average daily trading volume of $10 billion and over 6 million daily registered users.

In 2019, FTX had a rough start with only $7.2 million in revenue, but in just 36 months, the company's valuation grew by 4000%, skyrocketing to $32 billion.

Why Did FTX Grow So Rapidly?

What strategies did they use to transform into the world's second-largest cryptocurrency exchange in just three years?

Through this Web3 marketing case study, let's take a look at how FTX built a successful cryptocurrency trading platform—you can also apply these marketing strategies to your own projects.

What Does FTX Do?

FTX focuses on complex "crypto derivatives," allowing market participants to trade without holding physical assets. This means trading does not require wallets or other complex market infrastructure, enabling customers to bet on the future prices of major currencies like Bitcoin and Ethereum.

FTX offers the following crypto products:

• Industry-leading derivatives
• Options and volatility products
• Tokenized stocks
• Market predictions
• Leveraged tokens
• And much more

In short, FTX is a platform that allows users to easily trade cryptocurrencies.

In just three years, FTX has become one of the most respected cryptocurrency exchanges in the world.

FTX also issued its own utility token, FTT (which has seen an 850% increase in market value since 2022).

FTX's users are evenly split between individuals and investors, and here are some of FTX's notable achievements:

• FTX is one of the leading exchanges for crypto derivatives, even more valuable than Twitter, stock trading giant Nasdaq, and Deutsche Bank.
• In 2021, FTX became the fastest-growing cryptocurrency exchange, surpassing competitors like Coinbase, Stripe, and Binance during the same period.
• As of March 2022, FTX has raised a total of $1.7 billion through seven funding rounds (including top investment firms like Softbank Vision Fund, Tiger Global Management, Blackstone Group, Temasek Holdings, and Lightspeed Venture Partners).
• Their website (ftx.com) receives approximately 700,000 total visits per month through 77,000 keyword searches.
• FTX's most popular trading pairs are BTC/USD and ETH/USD. The exchange has been rated "A" by the largest crypto index, Nomex, meaning "transparent." Among 778 exchanges, FTX ranks fourth in terms of transparency and trading volume.

Perhaps most astonishing is how founders Sam Bankman-Fried and Gary Wang efficiently carved out a niche in the fiercely competitive cryptocurrency trading market.

Read more: An NFT Marketing Checklist for Your Crypto Project * What Is Web 3.0? The Future of the Internet

8 Marketing Tips Learned from FTX's Success

Now that you have a clear understanding of what FTX is and the fierce competitive environment they operate in, as well as why they have stood out in Web3, let's look at the following marketing tips extracted from FTX's incredible success.

[Tip 1] Leverage Influencers to Increase Brand Awareness

FTX places a strong emphasis on KOL marketing. To compete with strong American rivals, they hosted a marketing campaign featuring seven-time Super Bowl champion Tom Brady and model-entrepreneur Gisele Bündchen:

FTX invested $20 million in the campaign. The event took place during the NFL season opener in Tampa Bay (Brady's team) and Dallas in 2021, running throughout October alongside NFL broadcasts and digital marketing components.

An agency that collaborated with Brady and Bündchen, DentsuMB, created a humorous tagline: "FTX: You’re Here Too?"

The goal of collaborating with Tom and Gisele was to familiarize consumers with technology, customer service, and products while competing with well-known companies like Binance, Coinbase, and Kraken.

Brett Harrison, president of FTX.US, stated, "We are still newcomers in the crypto service scene, and we know that to achieve this, we must start some mainstream branding and advertising marketing, sponsorship-type work, etc."

KOL + sports marketing seems to be the perfect path to achieve this.

In addition to football, FTX also did the following:

• Engaged NBA player Stephen Curry as another brand ambassador.
• Signed a $135 million naming rights deal for the NBA's Miami Heat arena.
• Reached an agreement with Major League Baseball to become their official cryptocurrency exchange, meaning we will see umpires wearing uniforms with the FTX logo.
• Collaborated with tennis star Naomi Osaka to focus on guiding women into the crypto platform.

Athletes are not the only target audience: FTX also reached out to beauty entrepreneur Lauren Remington Platt, founder of the high-end beauty company Vensette. The company has established brand alliances with Vogue, Chopard, and Michael Kors.

Platt was invited to establish partnerships with luxury and fashion brands. With the luxury industry valued at $300 billion, FTX aims to target a new generation of high-end consumers created by crypto wealth.

In recent years, luxury brands have also ventured into the crypto space, including:

• Prada collaborating with Adidas to release NFTs
• Ralph Lauren opening nearly seven digital stores in the Roblox metaverse
• Gucci partnering with Superplastic to release limited edition NFTs

Thus, Platt's experience in the fashion and luxury sectors is crucial for FTX's future development stages and brand collaborations, as well as brand building.

But if you're thinking, "FTX is doing well, but we can't afford Tom Brady," don't worry! While FTX is still hesitant about choosing A-list KOLs, many successful crypto projects have already started collaborating with lesser-known KOLs to gain early influence.

For more information, read: Influencer Marketing Strategy: The Ultimate Guide to Growing Your Business with Brand Partnerships

[Tip 2]: Build a Strong Community in Web3 (Using an "Omnichannel" Strategy)

Community building is essential for the growth of web3 projects, as it helps attract many new users to trade. Having a large fan base can increase users' confidence and assurance in this emerging field.

A community can help create a highly active and engaged user base, which in turn drives more trading activity, bringing more trading volume to the exchange.

FTX utilized social media to build a community and increase its fan base. As brand awareness grew, users naturally became more willing to use the platform and recommend it to others. Social media also created a more competitive environment for FTX, lowering trading costs and providing better services.

They used Twitter, Telegram, Instagram, and other social media to reach a broader audience of crypto enthusiasts. FTX has over 665,000 Twitter followers and 136,000 Instagram followers. They regularly provide content to users to guide them and increase interaction.

Through a series of social media optimizations and brand building, FTX's market share grew by 600% from 2020 to 2021.

Building a community helped FTX stand out among numerous competitors (Coinbase and Binance).

FTX believes that brand identity and user retention are crucial for the growth of the user base of cryptocurrency exchanges.

Community projects aim to keep members connected and provide support to those who have questions. Loyal cryptocurrency buyers and investors help drive the launch of new products on the exchange. They encourage users to interact on mainstream social media platforms through text, video, and images.

Unlike many other brands, FTX maintains user engagement at its peak by personally responding to user comments and interacting with them.

Here are some quality suggestions for increasing social media followers:

A) Announce Major Events and Updates

Announcements are a key part of FTX's Twitter marketing strategy. They ensure that any product releases and acquisition notifications reach their fans:

On Instagram, FTX announced its valuation reached $32 billion, up from $25 billion:

B) Encourage User Interaction

Encouraging users to engage in discussions about products and brands is actually quite simple:

• Post a message asking questions and inviting fans to give suggestions
• Organize online events through group chats where users can message or ask questions, and you respond immediately
• Host regular online gatherings for fans to increase interaction.

FTX leveraged KOLs to ask fans crypto-related questions and responded to them immediately. This approach also helped them gain instant attention.

Here’s an example of how FTX used the influence of American basketball player Stephen Curry to encourage users to try cryptocurrency trading through a video. This tweet received over 2,900 likes and 799 replies.

Read more: Best Community Management Agency: Top 7 Choices for 2022

C) Combine Social Channels

One effective way to increase fan interaction is by uniting strong different social media platforms.

FTX currently operates on many leading social media platforms, such as Instagram, Facebook, Twitter, Discord, and Telegram. They have a large number of loyal crypto enthusiasts who actively engage with posts from FTX, one of the world's top cryptocurrency exchanges.

This is the power of omnichannel marketing.

An omnichannel customer experience consists of various touchpoints across multiple marketing channels (such as email, phone, SMS, social media, and even physical stores). Omnichannel refers to creating a cohesive customer experience across all these channels, regardless of where the customer leaves or enters.

Compared to traditional marketing methods, the omnichannel approach focuses on going to where customers or potential customers are, rather than waiting for customers to come to them.

D) Leverage the Power of Public Relations

Public relations are crucial for building a fan base. Like Sam Bankman-Fried, try to establish a positive and effective brand image. Early on, he accepted an interview that gave him the opportunity to become well-known and searchable online.

To achieve this, it is important to build connections in the media and attend local events for proper exposure. This will help you, your brand, and your products gain maximum exposure. This is even more critical in the cryptocurrency space, as the industry is still new, and many people remain skeptical.

For example, when FTX planned to expand into Africa, Bankman-Fried was concerned that no one had heard of FTX's cryptocurrency trading:

"We have been established for two and a half years, but that is much shorter than many large exchanges in the crypto trading field. We realized that many people, when first trying to enter the crypto world, had never heard of FTX."

Thus, in July 2021, FTX hired Harrison Obiefule as PR manager to promote the company.

…which seemingly brought in more traffic and referring domains immediately:

E) Increase Fan Base Through Contests

Contests are a great way to persuade people to try crypto and NFTs. FTX used contests as bait to encourage people to comment on tweets and participate.

In this contest, FTX gave away 6 NFTs worth $11,000:

[Tip 3]: Simplify Information to Help Target Users Understand the Project More Easily

The crypto world can be hard to grasp, especially for newcomers. To make the crypto world more understandable, FTX collaborated with well-known creators to produce high-quality content that clearly explains their products in simple language.

To bridge the gap between FTX and those just entering the crypto space, the brand launched a campaign called "Not an Expert."

They utilized KOLs, regardless of their influence, to create short video tutorials to attract the attention of new users.

The brilliance of this initiative lies in explaining the basic concepts of a crypto term in just 60 seconds, similar to Erika Kullberg's article explaining Bitcoin:

Other KOLs who collaborated with FTX to provide short video content include:

• Kyla Scanlon, founder of Bread, who explained the three core functions of stablecoins and currency in a one-minute video.
• Kayla Kilbride, founder of TheDropNFT, who explained the metaverse.
• Humphrey Yang, an independent video creator, who explained smart contracts.
• Duke Alexander Moore, a TikTok tax expert, who introduced the differences between short-term and long-term capital gains.
• Daniel Iles, a YouTuber and TikTok KOL, who explained the differences between cold wallets and hot wallets.
• Austin Hankwitz, co-founder of Witz, who explained the concept of DeFi.
• Patrick Kim, founder and CEO of Worth Network Inc, who explained P2E games.
• Tejas Hullur, a YouTube blogger and digital creator, who explained the origins of Bitcoin.
• Adi Adara, an investment expert at Brown Venture Group, who explained Bitcoin.
• Danny Devan, a KOL in the finance sector, who explained the differences between bull and bear markets.

Additionally, users can freely download the FTX App to receive industry news and the latest information from top projects.

FTX even has a blog that includes content on crypto, NFTs, and more for everyone to learn:

• A market review column to inform the community about cryptocurrency fluctuations.
• Company news and events.
• A downloadable monthly summary in PDF format, containing a list of FTX's activities and changes to enhance user experience.
• A series of videos and blogs to attract user attention, guiding and supporting users in their ongoing cryptocurrency investments.

Content marketing can convert potential customers into actual customers, as companies can showcase their products in an engaging and informative manner. FTX uses high-quality content to attract buyers at different stages, including

compelling CTAs (Call to Action) inviting website visitors to take action.

Engaging slogans also help convert potential users into actual users, as companies can clearly and concisely inform users of their next plans (read more, log in, download free XYZ, purchase).

Here are examples of CTAs on the FTX website:

By using the title "Join the Team" and images of some KOLs, FTX successfully attracted millennial and Gen Z users. The CTA "Create a Free Account" makes it easier for people to register without any cost.

One major reason people are not interested in crypto trading is that they find it difficult.

Thus, FTX uses the slogan "Start Crypto Trading in the Easiest Way" to minimize user bottlenecks in the simplest way possible.

[Tip 4]: Find Your Potential Users

FTX collaborated with comedian Larry David as part of the "Don't Miss Out" promotional campaign for NBC's Super Bowl halftime show.

In the short film, Larry David played his own version (the well-known version—suppress your enthusiasm). As a skeptic of time travel, he mocked inventions like the wheel, fork, toilet, light bulb, and portable music player.

As the ad neared its end, David sat behind a table promoting FTX as a safe and secure cryptocurrency trading platform. He said, "Hmm? I don't think so, and I've never missed out on this kind of thing."

Because David is a notoriously cynical person who has never appeared in an advertisement before, the ad aimed to promote cryptocurrency to those skeptical of the digital currency space.

David's long-time creative partner Jeff Schaffer told Hollywood reporters that various advertising agencies had approached them over the years, but when they tried to propose concepts, the conversations never ended well.

However, when the advertising agency DentsuMB proposed the idea of having David play a time-traveling fool, it was too perfect to pass up.

Read more: The Ultimate Guide to Blockchain Digital Marketing and Cryptocurrency * 5 Best NFT Marketplaces for Beginners in 2022 * How to Promote Your NFTs the Right Way

[Tip 5]: Design an Irresistible Offer to Persuade Users to Register for Your Project

Want to achieve better results in Web3 marketing overnight? Offer some items to persuade people to register for your service—just like FTX offers free and exclusive items to platform users. The exchange also holds contests with enticing prizes.

For example, in 2020, FTX held a "100 ETH" contest for the top three users on the platform, where participants could use cryptocurrencies, altcoins, leveraged tokens, and stablecoins, indices, and more for futures or options.

In 2019, FTX issued its native cryptocurrency FTT and launched tokenized BTC, a synthetic asset that tracks Bitcoin prices. FTX is one of the few exchanges that offer leveraged tokens, which are ERC-20 tokens with built-in leverage. For example, a 3x leveraged Bitcoin (bull-3x) gives holders 3 times the exposure to Bitcoin price movements.

So, if you're looking for more ways to acquire cryptocurrency or have already spent money buying/trading cryptocurrency, registering for a free FTX account to receive these rewards is definitely worth it.

Of course, the number of tokens you receive is unlimited after each trade exceeds $10. However, after a compliant trade of $10 or more, you will receive a message about obtaining tokens, which will be automatically credited to your account. The tokens you receive are randomly selected and will not be the same as those from other or previous trades.

[Tip 6]: Maximize the Use of Paid Search Ads to Drive User Registrations

Using search ads is a great way for exchanges to enhance brand awareness, as PPC ads have high response rates. Google Ads is one of the most efficient ways to acquire new users, attracting users with high "registration intent" to help improve conversion rates.

Here’s an example of a PPC ad run by FTX, emphasizing how easy it is for users to start crypto trading:

Note the headline—"Crypto Investing Made Easy: The Simplest Way to Start Trading"—is particularly appealing to those hesitant to embark on their crypto trading journey.

In the ad copy below the headline, they listed the timeline—"In less than 3 minutes"—to highlight the quick conversion to starting crypto trading. With excellent copy, this specific and concise investment copy encourages everyone to start crypto trading because it only takes 3 minutes. Can you test this technique in your project ads?

Read more: How to Improve E-Commerce Landing Pages with Paid Ads Data * 22 Alternative Ad Networks for Best PPC Conversions in 2022 * Ecommerce Advertising Strategy: How We Doubled PPC Sales for ThinSlim Foods (with a 3X+ ROAS)

[Tip 7]: Use Genuine Trust Signals to Enhance Website Conversion Rates.

Brands can use various trust signals to increase conversion rates:

• Display customer testimonials or reviews on their website or product pages.
• Offer customers a money-back guarantee or free returns/exchanges (also known as "risk reversal" in copy).

FTX enhances trust with several clear signals, establishing strong relationships with customers. One of the most important trust signals is transparency.

For example, FTX launched the FTX Card, allowing users to start trading crypto with zero fees with millions of merchants worldwide. The card is free and offers the highest security standards to ensure user funds are safe.

FTX maintains transparency in operations by regularly updating activity dynamics and information through news articles and tweets. This helps build trust with customers, making them feel that the exchange operates with openness and honesty.

Another key trust signal is security. FTX has implemented multiple security measures to protect customer assets. FTX stores all customer funds in cold storage and employs a multi-layer security model, including 2FA and IP whitelisting. These measures help reassure customers that their assets are secure.

FTX has built a strong reputation in the industry. It is one of the most popular and respected cryptocurrency exchanges. Users also maintain a positive attitude towards them.

This helps build trust with potential customers who can see each other's positive user experiences.

This has contributed to FTX's rapid growth, with over 6 million users.

[Tip 8]: Donate to Non-Profit Organizations to Earn Respect

For decades, corporate philanthropy has been a murky topic.

Corporate Social Responsibility (CSR) encompasses more than just donations to charitable causes. Cause marketing goes beyond one-time donations and fosters partnerships between companies and non-profit organizations.

Cause marketing always benefits from mutual cooperation:

• Enhances brand loyalty
• Establishes a positive brand image
• Stands out from the competition
• Increases brand awareness

FTX's CEO Sam Bankman-Fried has committed to donating most of his assets (in dollars or Bitcoin) to non-profit and charitable organizations. He claims to keep only 1% of his assets, which is enough for him to live comfortably (about $100,000 per year).

His friends describe him as a strange capitalist monk. Based on effective altruism principles, Bankman-Fried is very interested in his life philosophy of "earn more, give more."

Here are the steps FTX took to donate to charitable organizations:

A) Launch the FTX Foundation

When Bankman-Fried and Wang founded FTX, their goal was to create the most significant and positive impact on the world. Since 2020, FTX and its affiliates have donated millions to charitable causes. In addition to Bankman-Fried, other members of FTX have also committed to donating what they have created.

In 2021, they established the FTX Foundation to make a positive impact on the world. The foundation's mission is to reduce global extreme poverty, alleviate animal suffering, combat climate change, and improve long-term human development prospects.

The FTX Foundation has also committed to having a voice in the projects FTX donates to. Currently, the foundation has raised 1% of FTX's fee revenue.

B) Hire Gisele Bündchen as Head of Environmental and Social Initiatives

FTX recently announced that supermodel Gisele Bündchen is now the head of FTX's environmental and social initiatives. Her role is to help FTX connect with influential charitable organizations.

Bankman-Fried shares Bündchen's passion for philanthropy and has established organizations to protect wildlife and the environment to eliminate poverty for future generations. So this is a perfect role for Bündchen.

C) Donate to the Ukrainian Government

The Ukrainian government partnered with FTX to launch an official website for receiving cryptocurrency donations for the Ukrainian armed forces and humanitarian aid programs.

The Aid for Ukraine page on the Ukrainian government website is a joint project organized by the country's Ministry of Digital Transformation, American cryptocurrency exchange FTX, staking provider Everstake, and Ukrainian exchange Kuna.

The website aims to raise $200 million. As of March 2022, it has raised $60 million. The site accepts Bitcoin, Ethereum, Polkadot, Solana, Tether, and Dogecoin, as well as some lesser-known currencies like ICON and Casper.

FTX is converting all received cryptocurrencies into fiat currency and sending them to the National Bank of Ukraine.

Donations are a very successful marketing strategy for FTX, with significant effects. Finding a cause or charity is a great strategy because customers prefer companies that give back: 85% of consumers prefer to support businesses that support charitable causes.

Read more: How a Brand Persona Plays Into Effective ROI

In Summary, 8 Marketing Tips

FTX has developed effective marketing strategies that helped the brand become a top cryptocurrency exchange in a very short time.

The company focuses on providing a comprehensive and user-friendly platform to meet the needs of both experienced traders and novice traders.

FTX builds products for traders, such as leveraged tokens and tokenized stocks. They use token incentives to acquire early users and, due to high switching costs, they chose the right L1 blockchain to help scale the DeFi ecosystem around Solana.

Here are 8 marketing highlights of FTX's growth strategy:

• Collaborate with top KOLs and lesser-known KOLs (depending on your budget) to gain project or brand awareness and venture into industries unrelated to yours. FTX partnered with a high-end beauty company to attract a new audience.
• Community building is particularly important for your crypto project, as communities help create a more active and engaged user base. Use an omnichannel strategy to build your community, as this can provide a broader user experience across channels. Customers will leave from here and return from there. FTX has tapped into most leading social media platforms, boasting a large number of loyal crypto enthusiasts who actively engage with FTX.
• The crypto market can be hard to grasp, so it's essential to make it easy for target users to understand your project. FTX collaborated with popular creators to create product education that clearly explains their products in easy-to-understand language.
• Anticipate questions, clarify confusion or skepticism, allowing you to understand potential customers' sentiments and respond before they ask questions. To achieve this, FTX collaborated with the perfect skeptic, Larry David. They produced a video ad promoting cryptocurrency to those skeptical of the digital currency space.
• If you want to see quick results from your marketing strategy, you need to offer some sweet bait to persuade people to register for your service or purchase your product. FTX offers free and exclusive items to platform users and holds contests with very enticing prizes. There’s nothing quite like providing free/valuable items to motivate people to take action.
• Run search ads to increase brand awareness, as PPC ads have high response rates. FTX runs PPC ads with excellent copy, emphasizing how easy it is for newcomers to start crypto trading in just three minutes. This makes it truly hard to resist.

I hope this Web3 growth study helps you understand the marketing strategies FTX used to attract more users to its cryptocurrency trading platform. You can draw inspiration from their strategies to kickstart your next major Web3 venture.