DeFi

Polkadot

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<ul> 
 <li>Polkadot’s $37M marketing spend sparks community outrage, failing to deliver expected results, calling for a strategic overhaul.</li> 
 <li>Polkadot maintains a $244.6M surplus despite the backlash, with assets across three chains and extended loans to DeFi protocols.</li> 
 <li>The community demands that Polkadot revamp its marketing strategy amid failed ROI and influencers advise against DOT investments.</li> 
</ul> 
<p>A Unexpected $37 million was spent on marketing in the first half of this year, according to Polkadot’s financial report. This is a portion of the entire cost of $87 million. The society is furious because the large sums of money spent have not produced the desired effects. The financial report for Polkadot also shows that, given the present burn rate, their funds will endure for an additional two years.</p> 
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   <p lang="en" dir="ltr">Polkadot spent $37m USD in outreach during the first half of 2024, targeting new users, developers, and businesses<br><br>• $10m on ads/sponsorships<br>• $4.4m on influencers<br>• $4m on digital ads<br><br>Yet Polkadot still seems invisible on X and elsewhere. <a href="https://t.co/pk0haLvuNm">pic.twitter.com/pk0haLvuNm</a></p>— Ignas | DeFi (@DefiIgnas) <a href="https://twitter.com/DefiIgnas/status/1807784567241351286?ref_src=twsrc%5Etfw">July 1, 2024</a>
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<p><a href="https://forum.polkadot.network/t/2024-h1-polkadot-treasury-report/8862">Polk</a><a href="https://forum.polkadot.network/t/2024-h1-polkadot-treasury-report/8862" target="_blank" rel="noreferrer noopener">a</a><a href="https://forum.polkadot.network/t/2024-h1-polkadot-treasury-report/8862">dot</a> possesses cash and cash equivalents totaling 29 million DOT, which is the same as $188 million. DOT, USDT, and USDC are among them; the Treasury can use them right now. These assets are distributed across three chains: 23 million DOT ($148 million) on the relay chain, 6.2 million DOT ($40 million) on AssetHub, and 79,000 DOT ($505,000) on Hydration.</p> 
<h3 class="wp-block-heading" id="h-expenditure-breakdown-and-community-response"><strong>Expenditure Breakdown and Community Response</strong></h3> 
<p>Polkadot’s marketing expenditure included advertising, events, business development, and media production. Advertising alone cost $21 million, with $10 million spent on sponsorships. Notably, $6.8 million went to a prestigious soccer club sponsorship and $1.9 million to sponsor race car driver Conor Daly. Influencer marketing costs $4.9 million through agencies like EVOX, Lunar Strategy, Chainwire, and Unchained. Digital ads via <a href="https://coinmarketcap.com/" target="_blank" rel="noreferrer noopener">CoinMarketCap </a>and EVOX totaled $4 million.</p> 
<p>The community’s backlash focuses on the perceived lack of return on investment. They argue that the marketing spending has not delivered the anticipated results. Influencers advising against investing in DOT have added fuel to the fire. Critics highlight the need for Polkadot to revamp its <a href="https://cryptonewsland.com/how-moonbags-incredible-growth-strategy-made-it-the-best-crypto-presale-in-june-2024-luring-cosmos-and-bonk-investors/" target="_blank" rel="noreferrer noopener">marketing strategy</a>. They believe the current team is not delivering the expected outcomes.</p> 
<h3 class="wp-block-heading" id="h-financial-stability-and-strategic-moves"><strong>Financial Stability and Strategic Moves</strong></h3> 
<p>Despite the heavy marketing spend, Polkadot maintains a comfortable surplus of $244.6 million. The company’s treasury liabilities are minimal, with salaries potentially reaching up to 250,000 USDT per month.In order to provide liquidity to <a href="https://cryptonewsland.com/expert-who-called-2020-defi-boom-reveals-best-solana-sol-alternative-to-buy-in-2024/" target="_blank" rel="noreferrer noopener">DeFi protocols</a> inside its ecosystem, Polkadot has also issued loans. A DOT loan of $50,000 was given to Pendulum, and a loan of $500,001 was given to Bifrost.</p> 
<p>In the second half of 2023, Polkadot made 300,000 DOT from fees, indicating that direct revenue from fees is still only modest. Additionally, they earned 20,000 DOT per quarter under regular conditions.</p> 
<p>The community’s dissatisfaction with Polkadot’s marketing expenditure highlights the need for a strategic shift. While the company’s chain remains praised, the marketing approach requires reassessment. Consequently, Polkadot must address these concerns to restore investor confidence and achieve better results.</p> 
<h4 class="wp-block-heading" id="h-read-also">Read also:</h4> 
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</ul> 
<p>The post <a href="https://cryptonewsland.com/polkadot-faces-community-backlash-over-37m-marketing-spend/">Polkadot Faces Community Backlash Over $37M Marketing Spend</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Polkadot Faces Community Backlash Over $37M Marketing Spend

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