Experts have likened the recent cryptocurrency crash to the 1995 burst of the dot-com bubble and the 2008 global financial crisis. In less than a year, Bitcoin’s value has free fallen by 50% from its peak of $68,990.90 in November 2021, with the likes of Ethereum, Nasdaq, and other alternative coins that were previously touted as stable currencies experiencing near vertical plummets.

Many enthusiasts and professional investors alike, who previously benefited from cryptocurrency’s meteoric rise, have had to endure the agony of watching their financial plans and goals go up in smoke. Does that mean that all is lost for the cryptocurrency market? Well, not quite. The fact of the matter is that although it's still a far cry from its former glory, cryptocurrency still retains value.

Market Cap Graph
Graph sourced from Coin Market Cap.
As of May 2022, the cryptocurrency market was valued at $1.2 trillion, still more than it was in mid-2020 when the current wave of hype began.

Objectively speaking, cryptocurrency has experienced literally unprecedented levels of price appreciation within a short time frame. Some experts even theorise that the recent crash is a healthy and expected, albeit painful, form of market correction.

At the time of this blog post (July 2022), Bitcoin is hovering around the $20,000 range, similar to when the currency lost half its value in mid-July last year after reaching a record high in April 2021.

The reality is, alternative currency will probably continue to stick around for many years to come given the legitimacy behind blockchain technology, coupled with government regulations in other Asian territories, such as Singapore, South Korea, and Hong Kong. In fact, some investors are touting the crash as an optimal time to get into the market. While we may not witness cryptocurrency rising to 2021 heights for a while, wider adoption and application can still be expected in the future. The regulation of this market by governments, in the form of crypto taxes and legislation, is a good indication of the general adoption of cryptocurrency in the mainstream markets.

Four ways to re-build investor confidence

For cryptocurrency trading platforms and service providers, the task at hand is to help burned investors pick up the pieces and invest in a way that minimises their risk exposure to market crashes of similar magnitudes in the future. Given its volatility and unpredictability over the past few years, the cryptocurrency market has probably taken as many prisoners as it has produced victors.

Moving forward, cryptocurrency platforms and cryptocurrency exchange options will have to focus on providing features and services that help to build (or re-build) trust with their customers.

1. Timely updates

Timely notifications on the latest changes in the cryptocurrency market are essential for giving customers sufficient heads up, so they can react quickly and make changes to their investments.

In just one month, Bitcoin’s price plummeted from $47,063.37 in March 2022 to $38,650.55 in April 2022.

8x8 Communication APIs give cryptocurrency platforms a great way to bring market alerts to their customers by automating message delivery on SMS and six widely adopted chat apps (Facebook Messenger, WhatsApp, WeChat, Zalo, Viber, and KakaoTalk). Your customers can be the first to know about the latest market corrections, as well as any promotions and offers from your platform.

8x8 Communication APIs are easy to integrate into any existing CRM application thanks to their low-code design. These APIs enable customer service agents to tailor messages based on customer demographics and make messages come to life with accompanying photos, videos, and files.

2. Tailored investment advice

Investing is a stressful ordeal that doesn’t necessarily get easier with time. That’s because losses are losses, whether you’re a first time investor or an old-timer. Because everyone’s financial situation is different, deciding how and when to invest is a highly personal decision—the right move for one person may spell disaster for the next.

The 8x8 Video Interaction API facilitates two-way video consultations, so that cryptocurrency platforms can guide their customers through the investment process. With no signups or downloads required, the onboarding process is fuss-free. Chat with your customers as if they were in your office lobby and share your screen to give them step-by-step tutorials on how to navigate your platform.

3. Secure systems

Losing a fortune to hackers is quite possibly far worse than losing it to a market crash, because it means losing the opportunity to grow wealth during a favourable period. Ensuring secure asset custody alongside secure transactions can help prevent such risks.

Prolific hacking team Lazarus Group stole $620 million worth of Ethereum on March 2022.

8x8’s Communication APIs are built with customer privacy and safety in mind. For example, data from 8x8 video calls is destroyed the moment the call ends, leaving no digital footprint behind. Similarly, the principles of digital footprint removal are vital for users who aim to protect their online presence, emphasizing the importance of using platforms that prioritize data deletion and privacy to secure personal and financial information. Our systems also have fraud and weakness detection built in, so that our developers can address vulnerabilities and eliminate threats before they pose a problem to our users. Additionally, 8x8 APIs abide by all security and compliance standards, and are verified by third-party security organizations.

4. Authenticated transactions

Making sure that customers are the only ones who can access their own accounts provides an added layer of protection and offers peace of mind as they perform transactions on your platform.

8x8 SMS APIs authenticate users with OTPs that are deliverable even during periods of weak internet connection. Furthermore, the text-to-speech function can convert these temporary passwords into a voice format, removing the opportunity for hackers to intercept them.

Integrate the communications your investors deserve with 8x8

Leaving your communications back door open is a surefire way to risk financial information leaked, or customers feeling alienated. Use 8x8 Communication APIs to safeguard your customer communications and build trust—which is especially important during volatile times. Contact us for a demo at hello-cpaas@8x8.com.