The ecosystem founded by Gavin Wood is in the spotlight: Polkadot has reportedly spent tens of millions of dollars on marketing. The protocol defends its position by ensuring that such a level of spending is common for blockchains of this magnitude.
Significant expenditure that creates controversy
The Polkadot ecosystem, founded by Gavin Wood, one of the co-founders of the Ethereum network, finds itself in the spotlight following the publication of its semi-annual report.
In fact, in the said report we learn that Of the $87 million spent, 42%, or $37 million, was spent on marketing..
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It is therefore the substantial increase in funds intended to make the ecosystem known that are being singled out by the crypto community. Despite these significant expenses to make Gavin Wood's project known, some influencers denounce the uselessness of the approach by claiming that Polkadot would still be invisible on the social network X:
Polkadot spent $37m USD in outreach during the first half of 2024, targeting new users, developers, and businesses
β’ $10m on ads/sponsorships
β’ $4.4m on influencers
β’ $4m on digital adsYet Polkadot still seems invisible on X and elsewhere. pic.twitter.com/pk0haLvuNm
β Ignas | DeFi (@DefiIgnas) July 1, 2024
According to Tommi Enenkel, the chief ambassador of the Polkadot Foundation, The marketing budget during the 2nd quarter of 2023, however, represented only 29% of the project expenditure..
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An overview of expenses
All expenditures made during the first half of 2024 have thus attracted interest, leading to a careful examination of the latter. Thus, we learn that $10 million was used to sponsor various sporting events, ranging from motorsports to football to e-sports.
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Nearly $5 million was reportedly spent on paying influencers, $8 million on events and other conferences, and $4 million was spent on digital advertising.
Among Polkadot's expenses, The protocol spent nearly $200,000 to put its logo on a fleet of private jets based in Europe. This expenditure is justified by a desire to ” generate awareness among an elite target group “.
If you are used to browsing the sites of CoinMarketCap or CoinGecko, popular websites for tracking the price of cryptocurrencies, you will have noticed that for a few weeks now, the Polkadot logo is now (the only one) animated. This little madness cost the trifle of 400,000 dollars.
Polkadot's Defense
According to one of the authors of the report on Polkadot spending, who goes by the pseudonym Jeeper, the amount of $37 million for marketing purposes would be typical. He stated that: All networks have similar expenses, but they are done behind closed doors, and no one can see what they pay and to whom. “.
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Additionally, a spokesperson for Parity, the company behind Polkadot, said that the project's community is at the helm of all meaningful decision-making. It would therefore be at the initiative of the community, following a governance vote, that the project would have initiated this large-scale marketing campaign..
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Source: Polkadot, Coingecko
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