BlockchainDefender Releases Report On Cryptocurrency Global Market Capitalisation And A Lack Of Trust

BlockchainDefender recently released a detailed report exploring the impact of the reputation of cryptocurrencies on their global market capitalisation. The report takes a closer look at issues of trust related to cryptocurrencies in specific countries around the world and the resultant impact on coin price, as well as market capitalisation. It explores the influence of both positive and negative online sentiment to answer a few specific questions. The report itself is divided into three separate studies with unique but related areas of focus.

Study One

The first study directly addresses the titular question in the title of the report: the impact of market sentiment on the market capitalisation of a cryptocurrency. It also takes a closer look at how the reputations of various cryptocurrencies compare to each other, variations in reputation by regions and countries, and the most common sources of online negativity.

This study used Google AdWords data to view and analyse specific search terms. The research indicates a very clear correlation between positive online sentiment and high market capitalisation, as well as a correlation between negative online sentiment and low market capitalisation. When the sentiment is positive with a high search volume there is increased market capitalisation, and when the opposite is true market capitalisation is decreased.

In terms of reputation by country, the most common sources of negativity include news websites dedicated to the crypto industry, blogs and social media, discussion forums, crypto review websites, and crypto company websites. The US had the most negativity for cryptocurrency in general.

For Bitcoin’s reputation, BlockchainDefender explored positive and negative search results in four countries. Of these, the most positive search results came from the UAE, followed by Germany, the US and Japan. The most negative search results were from the US, followed by Germany, the UAE and Japan. Overall, Iconomi showed the most positive results while Bitcoin Cash had the most negative results.

Study Two

The second study compares online reputations of traditional exchange markets with those of digital exchanges and currencies. BlockchainDefender found that traditional exchanges have a higher level of control over their online reputations. This is mostly driven by positive ownership, such as official social media channels and websites. Cryptocurrencies struggle in this respect. There is 275% more negative coverage surrounding crypto exchanges than traditional exchanges.

Study Three

Finally, BlockchainDefender explores how a crisis involving a specific cryptocurrency impacted its price. Unsurprisingly, negative sentiment about the cryptocurrency in question rose dramatically following the crisis, while positive content decreased. The interesting aspect of the report is how countries perceived the crisis in different ways.

Overall, the BlockchainDefender report found a clear indication that people research cryptocurrencies and crypto exchanges before making investments or participating in the crypto industry. This only serves to underline the importance of strong reputation management for cryptocurrencies.

You can view the cryptocurrency industry report here. Or download a digital copy of the report.