Marketing Strategy
Last updated
Last updated
From our own internal research and interactions with potential investors all throughout the 1st half of 2022, we found that environmental awareness amongst retail investors (individuals) and SMEs is more prevalent in North America, Europe, Australasia, and North Asia (Japan, South Korea), therefore these are markets which would most likely purchase carbon credits for offset purpose. As for the rest of Asia, especially India, South East Asia & the GCC, we found that individuals & even SMEs there are more interested in the trading aspect of carbon credits, therefore we concluded that these markets would be purchasing our carbon credit tokens for investment purposes. Our marketing strategies will hence be tailored made to serve the demand factors of each target market.
CarbonDEX stated mission is to democratize the carbon credit markets, by making them affordable for anybody to invest in as well as to open trading opportunities for the retail & SME markets which for so long have been ‘structurally’ excluded from it. Therefore logically our main target users will be the retail (individuals) & SMEs. On the environmental marketing angle for the retail market, these will center around offsetting personal lifestyle carbon emission that arises from traveling, (flights, cars), house or apartment electricity usage, and heating usage. For the SMEs, the environmental marketing angle will be for them to reach Net Zero carbon emission in their day-to-day business operations and hence meet any externally or internally formulated ESG aims. Another marketing angle for SMEs is to allow them to provide products to their customers that can be labeled as ‘Zero Emission’, which CarbonDEX will provide through its Partnership Program.
Due to CarbonDEX being a blockchain-based decentralized project and a decentralized exchange, another group of users that CarbonDEX will target are the Cryptocurrency users. These can be divided into Cryptocurrency investors (those that invest in Coins & tokens), and NFT investors (those that purchase digital items, like artwork, music, and online games in the form of non-fungible tokens or NFT).
Cryptocurrency emits large amounts of carbon emission due to the electricity it uses to maintain the integrity and verify transactions in its blockchain network. Transaction verification is done through a consensus mechanism between the blockchain nodes. Blockchain networks that use ‘Proof of Work’ or PoW consensus mechanisms are the worst offender in terms of carbon emission due to the mining operations that use actual electrical equipment (computers, mining rigs) that consumes a large amount of electricity. The coins or blockchain networks that employed PoW consensus mechanisms are Bitcoin, Ethereum, Dogecoin, Litecoin, etc, the single transaction carbon footprints are as shown below. The worst offender is Bitcoin which emits over 800 kg of CO2e for every transaction. The electrical energy consumed by the Bitcoin network is comparable to that of Argentina as a country and the Bitcoin carbon footprint is as large as those emitted by the country of Colombia.
A better consensus mechanism is called Proof of Stake or PoS, rather than solving complex calculations (what the mining operation does in PoW networks), the PoS relies on a network of validators to confirm a transaction, this results in minimal energy usage and hence carbon emission. For example, the Polygon PoS network only emits about 430 grams of CO2e for a single transaction. The Ethereum Network is planning to migrate to the PoS consensus mechanism in September 2022. This will definitely decrease the carbon emission from the overall Cryptocurrency market, but not by much since the PoW coins still comprise half of the size of the market.
Therefore CarbonDEX will mainly target the project owners, users & investors of PoW-based cryptocurrency.