Savedroid ICO states that it ‘creates a unique AI-fueled ecosystem of crypto saving and investing for the masses’. Yesterday, on April 18th, Savedroid updated their website to the following picture:
It was an exit scam, to the tune of $50 Million USD. Another very tragic exit scam in the cryptocurrency world.
Except, it wasn’t.
This was actually an attempt at a PR stunt. Savedroid has released a new video to announce that they are not gone.
Of course, new spreads fast about massive exit scams, so Savedroid thought this would increase the word of mouth discussion of this project.
The stunt was completed under the guise of a good willed sentiment to the community: Exit scams are way too easy to commit, even under the regulations that Savedroid adheres to in Germany. This is, of course, a powerful message. But, perhaps, this was not the best way to convey it.
In terms of making the project more known, this marketing move has been a success. However, in this case this publicity may not be what the project was looking for, as it portrays the development team in a negative light. You can see the poor ratio of likes to dislikes on the video, which gives an idea of the community perception of this stunt. Furthermore, on forum sites such as Reddit people are expressing their distaste.
A key part of a cryptocurrency project is the team behind it, and their transparency. If the team is going to pull stunts such as this it can really affect their perception, which will have a negative effect on the project in the future.
It is hard to show the effect this has had on the project, as it is not trading. It will be interesting to see how the market reacts when Savedroid ICO begins trading, therefore.
From a marketing perspective, this was a bad idea. ICO’s should be building relationships and trust with their community. The amount of negative attention brought to the project largely outweighs the resulting exposure of the company.