What the numbers say: A recent study conducted by Clarify Capital with 254 investors has revealed the industries investors are most likely to avoid this year. The study results show that 52% of investors reported an intent to stay away from cryptocurrencies in 2023. Crypto is followed by religious industries and broadcasting and journalism, with 31% and 17% rates, respectively. Technology, AI, and medical and healthcare, on the other hand, became the industries likely to see higher interest from investors. Relevance: Another survey by the Pew Research Center has also recently pointed out that 75% of Americans who have heard about cryptocurrencies do not find the current ways to invest in, trade, and use crypto safe and reliable. In the poll, only a 6% portion reported extreme or much confidence in crypto. Brands that should care: The loss of investor confidence in the crypto industry mainly stemmed from the high-profile crypto ecosystem collapses last year. In 2022, the multi-billion dollar Terra ecosystem collapsed in May, wiping over $60B off the crypto industry, and the popular crypto exchange FTX filed for bankruptcy in November, paving the way for a prolonged crypto winter. These downfalls created a loss of trust in investors also toward other ecosystems and centralized exchanges, including Binance, OKX, Kraken, and Crypto.com. However, the industry was hit once more in March this year with the U.S. banking crisis starting with the consecutive collapses of crypto-friendly Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within just a week. This caused investors to lose trust in traditional financial institutions and turn toward cryptocurrencies like Bitcoin (BTC) and Ether (ETH), leading to a price increase in digital assets. |
