After initially starting the year focused on community management and the public’s perception, the fallout from FTX’s collapse caused many Web3 brands and projects to switch to arguing for their legitimacy and reputation, Web3 marketing agency founder Laura K. Inamedinova has said. She added that even in cases where there is no direct connection with FTX, Web3 entrepreneurs now feel compelled to address concerns about the security and reliability of their projects.

In addition to their attempts to assuage the fears of nervous investors and backers, Inamedinova, the Founder & CEO of LKI Consulting, said Web3 players have an even more formidable task of convincing regulators. She added that this also applies to projects backed by traditional brands.

For large corporations like Starbucks or Nike, which only recently kickstarted their metaverse projects, the collapse of FTX has rekindled trust issues that took years to overcome. According to Inamedinova, events in the past few months mean it will likely require more time and resources “to prove to mass audiences that blockchain can be trusted.”