Updated: Apr 14, 2021
With the massive surge of cryptocurrency popularity over the last few years, many fintech companies have attempted to capitalise on the trend by building and providing platforms for users to buy & sell cryptocurrencies via an exchange. Big names like Coinbase & Binance have always been staples in the community, but since the recent launch of their brand-new exchange app, Kraken could be poised for strong growth.
Meeting the cryptocurrency demand
Kraken announced at the beginning of this year that its customers have staked more than $1 billion in crypto via its service. Tied with the fact that Bitcoin is experiencing all-time highs and its adoption is becoming more widespread, consumers worldwide are flocking to cryptocurrencies as a means of developing and diversifying their finances.
Kraken CEO, Jesse Powell, shared his opinions on the momentum behind Bitcoin in an interview with Yahoo Finance stating that the current climate is driving more people towards alternative currencies.
“I think that it is going to cause more countries to stop using the dollar as a store of value, [causing] more people to move their money from savings to a safe haven asset like Bitcoin.”
Whilst Jeremy Welch, Kraken's Vice President of Product commented:
“With Europe having one of the highest smartphone penetration and digital literacy rates anywhere in the world, the Kraken App is a major step toward bringing the world-changing potential of crypto to anyone and everyone. For us, it shows our commitment to making crypto more accessible.”
Kraken's founders have a clear vision of success and aim to achieve their goals through geographically targeting potential customers.
Moreover, just a few weeks ago, Tesla CEO, Elon Musk bought $1.5 billion in Bitcoin showing his support for the crypto movement which caused a huge surge in its price as many followed suit. Investment platforms like Kraken are essential to the growth of blockchain technologies, and the movement towards decentralised finance is a benefit to society.
To meet the ever-growing demand of their staking/rewards service & crypto trading as a whole, Kraken launched their app a few weeks ago to compete with the likes of long-established brands like Coinbase.
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Targeting the newer, younger investors
Their clean & colourful branding is eye-candy, to say the least, with the aim to make investing in cryptocurrencies more easy-going and attractive, as compared to the bland but more professional tones used by other platforms. It appears that Kraken’s branding is more aimed at the younger generations who are interested in learning and building their personal finance. As a Gen-Z Kraken user, I must admit that their eye-catching branding is what first grabbed me, and after some thorough research, their trustworthy credentials and sleek platform convinced me to become a user.
Kraken’s site makes it clear that they are targeting the newer investors who have heard about the promise crypto trading could offer and want to get involved to avoid FOMO. It’s a smart strategy considering the recent boom of cryptocurrencies and the mystery surrounding them – consumers will be looking for a credible & trustworthy platform to support their investing needs.
These ideas resonate with customers highly as they feel that they are being offered true value and that Kraken’s vision is for a good cause. To paraphrase, everyone wants to achieve financial freedom to some degree, so why not through Kraken?
Educating its users & providing incentives
Perhaps one of their main features is the learning academy which educates its users on how blockchain & crypto exchanges work, how to buy these coins and how the market functions, all through their handy blog guides, videos & podcasts. Investing in cryptocurrencies can be intimidating when first starting out. With so many choices to invest in (over 1000 unique currencies), hundreds of platforms to choose from and conflicting opinions on whether it is profitable due to volatility, investing in cryptocurrencies can be a daunting experience for the uneducated. Kraken’s learning academy aims to solve that initial scepticism and provide its users with the fruits of knowledge to succeed.
Kraken also makes use of effective marketing through its affiliate program revenue share. With every user who refers a friend, 20% of the fees collected from a referred friend will be deposited as cash into the referrer's account. This is a huge incentive for current users to spread the word about the platform - who would say no to free money? Their blog reads that ”If you refer 500 clients to us, you can earn up to $500,000 USD (i.e. 500 X $1,000)” A very lucrative opportunity that its users may be tempted to seize.
Kraken even streamlines the process to make it as easy as possible, with a library of Kraken ad banners that users can implement to their websites or social media to refer friends with flair. It is clear that Kraken take their word-of-mouth campaign seriously, and this could be an instrumental factor in their sharp growth.
Could Kraken be poised to ride the waves of crypto & dominate the seas?
Kraken’s marketing strategy puts them in a strong position for the uptake of new customers whilst providing existing investors with a simple, clean platform to manage crypto assets. With a visionary CEO, realistic long-term goals, a clear idea of their target audience and a respectable mission of bringing financial power to consumers, Kraken is an example of a company that has its marketing in check.