It’s the situation that both crypto companies and PR managers alike fear: a crypto crisis taking place whether online or offline. If your business has existed for long enough or grown to a certain level, a crypto crisis is almost inevitable. This could mean customers calling out your products out of dissatisfaction, backlash to a marketing campaign, dispute with fellow businesses, executives in trouble, and a host of other things.
One of the first things you’ll need to consider from a PR perspective when this happens is whether or not to even respond. Should you put out a press release to address the issue? Should an executive record a video addressing the allegations? Should you take legal action and bring the public to the issue? Whether or not to respond to a crypto crisis could be the beginning of the end of your business or could be the start of a PR Triumph. In this article, we’ll look at the pros and cons of responding to a crypto crisis and things to ask yourself.
Pros Of Responding To A Crypto Crisis
If you choose to respond to a crypto crisis, there if you possible benefits to be had. First, you can help dispel rumours and diffuse a situation. If your business is being thrashed online or painted in a negative light, a response can help to balance out the narrative and put your business in a better light. If you’re choosing to debunk a rumour, it can even make your business look like the underdog and gain the support of the public.
On the flip side, not responding at all could go on to make your business look bad or complacent in negative behavior. We’ve seen enough crises so far to know that silence isn’t always the best option. If the issue in question makes it to a court of law, having a public statement could even eventually serve as evidence in your case.
Cons Of Responding To A Crypto Crisis
While responding to a crypto crisis can do your business good, it can also cause some harm. First, the public might simply not take your side despite your response. You could also put out a poor response that makes things even worse and puts you in a bad light. Depending on the nature of the situation, the public might end up with more questions than answers, and you might end up having to put out multiple statements as the issue drags on.
What To Consider
Before you think of responding to a crypto crisis, ask yourself the following questions:
-
What Is The Scale Of The Crypto Crisis?
The first thing you want to do is judge the magnitude of the crisis in question. Say you’ve put out a line of crypto wallets, and there is some dissatisfaction around their functionality. Find out the exact scale of the backlash. Is it one or two people in your comments section saying they don’t like it? Or is it an entire horde of content creators decrying it as the worst crypto wallets ever made? If it is the case of the former, you might not need to respond, as no single product satisfies anyone. If it’s the case of the latter, you might want to immediately act before the word spreads and the reputation of the product is damaged irreparably.
-
What Is Being Said And How Bad Is It?
Whether or not you should respond to a crypto crisis also depends on what exactly is being said about your business and how impactful it could be. If your business is being called out for an offensive marketing campaign, you might be able to get away with simply removing the campaign from your platforms and never discussing it again. If your business is being accused of fostering an environment of bullying or harassment, this could enter very murky waters and even involve illegal issues. In that case, you might lean more towards addressing the issue with the help of your legal team.
-
Do You Have An Appropriate Response?
We’ve talked about whether or not you should respond to a crypto crisis, but it is also worth asking yourself what response you plan to give. We’ve all seen a corporation or celebrity that responds to a PR crisis with a statement that makes things even worse than they were before. As you consider whether or not to respond to a crypto crisis, ask yourself what exactly you plan to say.
Will you be offering an apology to customers? Will you give a vague non-statement about guessing to the root of the matter? Will you say you have gotten the authorities involved? If you do not have an appropriate response that will diffuse the situation, you might want to refrain from saying anything at all. If, on the other hand, you have an appropriate response to give that could better the situation, you’re best off actually responding.
-
What Does Your Legal Team Say?
Always keep in mind that when you respond to a crypto crisis, you’re representing your business as a whole, and this needs to be done with as much guidance as possible. Before you decide whether or not to respond, speak to your legal team and get advice from them. They might tell you that, from a legal standpoint, silence is the best answer. They might also say that you can give a response without putting yourself in legal hot water. Either way, make sure that they are carried along with the situation and have a seat at the decision-making table.
Conclusion
No one hopes for a crypto crisis, but if one happens, you’ll be faced with the task of responding to or ignoring it. In this article, we’ve touched on the pros and cons of responding to a crypto crisis with the best-case scenario. By asking yourself the questions highlighted, you can have a better understanding of whether it will benefit your business to put out a statement and respond to a crisis or to let it blow over. Both responding and not responding have proven to be good and bad strategies in the past, and ultimately, this all depends on your unique situation.