Study: 62% of Crypto Press Releases Are High-Risk

Key Findings on Crypto Promotions

A new analysis by Chainstory covering nearly 2,900 crypto-related press releases found that approximately 62% originated from projects classified as high-risk or outright fraudulent. The report highlights a significant lack of editorial oversight in the digital asset promotion ecosystem.

The State of Crypto Media Releases

The four-month study suggests much of the crypto press release system operates on a pay-to-play basis, allowing ventures to buy distribution without rigorous vetting. More than half of the releases focused on minor updates, such as exchange listings or token sales, which typically do not meet standard news criteria. Only about 2% detailed significant corporate milestones like funding rounds or mergers.

Impact on Market Integrity and Investors

Widespread publication of paid promotional content disguised as news risks undermining media credibility and exposes organizations to ethical challenges. This practice allows lower-credibility sectors, including cloud mining and fringe DeFi projects, to manufacture legitimacy, potentially misleading investors about the true nature of their offerings.

Conclusion

The report concludes that the prevalence of high-risk promotions calls for stricter editorial guidelines in crypto media. Investors are advised to apply greater scrutiny to press release content and seek independent verification before making financial decisions.

FAQ

Q: What percentage of crypto press releases are from high-risk projects?
A: According to the Chainstory study, about 62% of analyzed crypto press releases were linked to ventures flagged as high-risk or fraudulent.

Q: Which crypto sector was most associated with risky promotions?
A: The cloud-mining sector showed the highest concentration of risk, with roughly nine in ten issuers falling into high-risk or fraudulent categories.

Source: Investing.com