This could explain why many did not follow advanced crypto performance metrics or need up-to-the-minute marketing performance information…
In a survey of 2,000 randomly selected current/previous/prospective holders (aged above 18) of crypto assets across the USA, the UK and Canada on how the sources and effects of performance metrics information affected their investment decisions, the finding was that a majority of the respondents did not prioritize the metrics that experienced crypto traders tout.
Instead, survey data showed that respondents who were investors/prospective investors typically prioritized conventional metrics such as risks factors and security (54%); financial overview such as cash flows (52%); and holdings of the management team (43%) when making decisions.
Critical crypto-specific metrics such as tokenomics (16%) and network performance (28%) did not even make it to the top five of respondents’ concerns. Tokenomics reflect — and can determine— the current and future supply of a particular crypto coin, while network performance metrics can provide a real-time view on how the platform behind the crypto asset is performing; and how holders are engaging with the platform, etc.
Other findings
When it came to sourcing crypto investment information, respondents indicated they looked to the native website of the crypto provider (39%); crypto brokers (35%); a crypto exchange (34%); and the crypto mass media (32%), to name a few. Also:
- In terms of frequency of information, just under half of all respondents cited they would prefer to receive updates on at least a quarterly or monthly basis, with 27% preferring to receive updates as information changed.
- Over 65% of respondents cited that their holdings represented a long-term investment, suggesting that not all participants were speculators.
- 47% of respondents cited that their investments in the space were being used to educate themselves, suggesting a “learning by doing” approach.
According to Rob Krugman, Chief Digital Officer, Broadridge Financial Solutions, the firm that commissioned the inaugural survey: “Metrics that track crypto asset performance should be standardized, better disclosed and made more easily accessible, especially for retail investors needing the most relevant information and support possible to make informed decisions.”
