The same type of crypto scams that plague Twitter is spreading widespread on Instagram in 2020.
For instance, more than 1.3 million Instagram posts are using #Coinbase, a remarkable number of which demonstrate inauthentic behaviour. Coinbase declined to comment on any past influencer operations, with the short comment: We do not have an active influencer campaign right now. Instagram isn’t explicitly launched in the company’s blog post about social media scams.
Attempts to decrease this trend seldom harm businesspeople like influencer and educator Rachel Siegel, better known as Crypto Finally. She was briefly de-platformed from Instagram in July.
For several days she was with at least three real crypto influencers, all young women, who momentarily lost access to their accounts.
I think that the methods for banning over imitation should be looked at, there are dozens of fake accounts mimicking me that are kept up on Instagram, Siegel said. Im glad that they were able to reinstate my account, but I believe new preventative standards should be taken to guard their users against falling victim to scams and impersonators. Forbidding the original creator, makes the problem worse. Along with Siegel, the Argentinian influencer Catalina was also suspended.
Instagram spokesperson Raki Wane told CoinDesk the accounts were taken down inadvertently when the mistake was noticed we overturned.
To be clear to Instagram, it’s apparent COVID-19 fraud trends are outpacing prevailing regulation practices. (I’ve been impersonated on almost every platform, including Instagram, along with many CoinDesk staffers. But scam accounts on Instagram try to contact or follow me weekly, more than other platforms, especially since the COVID-19 crisis began.)
There are many authentic influencer accounts doing giveaways on Instagram as part of their COVID-19 marketing approaches.
Notwithstanding this climate, Instagram still does implement a crucial networking platform for the crypto industry.
Particularly in Latin America, some entrepreneurs rely on Instagram to interact with customers about their products. Brazilian entrepreneur Edmilson Rodrigues, of both Bonnum and Lovecryptonet, often helps Venezuelan refugees who rely on mobile apps for information.
He said he uses Instagram to both “show pictures of my family and to publish updates about our product.” He said he interacts with product users via Instagram at least once every few weeks, particularly when his startup launches a new feature.
Yet another crypto firm operating in Brazil, the Abakus Group-supported exchange Novadax, shows how startups leverage Instagram for customer relations during COVID-19.
Chinese investor directed Novadax CEO Beibei Liu said thousands of Brazilians used her market to buy bitcoin for the first time over the past few months. Out of roughly 150,000 user total accounts, she noted surveys indicated 20% were new to Crypto. “We do a lot of basic educational content on Instagram,” Liu said, adding they also do Instagram Live sessions to answer user questions. “Instagram is a very important channel in Brazil, it’s a large population that is pretty young.”
More than half of the exchange’s Brazillian users are mobile-only, Liu said, so mobile-friendly customer payment options are crucial.
Even for the opposition of professional traders using the platform, such as Portuguese-speaking liquidity providers in Europe or the United States, Instagram marketing helps the startup establish trust. “They are more sceptical, they have concerns. So we post a lot of things related to our company background and team background,” Liu said about how the startup uses Instagram for customer relations with experienced traders. “It shows we are a trustworthy company. We show that we continue to update our products.”
Admittedly, the company is formally opening support for European traders in August, after months of restricted onboarding, to help increase liquidity and create a mutual flow between organisations and the emerging retail market.
This is why authenticity on social media platforms like Instagram, which is so challenging for mediators to safeguard, is a critical circumstance influencing cryptocurrency adoption patterns.
Talking to the global dynamics of Crypto Instagram, where some users strive to identify authentic accounts, Siegel said she hopes Instagram “will create a new model for a more active effort to protect their users.”