Case StudIES

LIDO: Taking Control Of A Crisis

Challenge:

The aftermath of the Luna/Terra depegging incident led to a challenge for Lido Finance when the price of Staked Ether (stETH) relative to Ether (ETH) experienced a divergence.

The media hastily labelled it as another example of a crypto project imploding due to a depeg. 

The goal for Lido was to distance itself from this de-pegging narrative and clarify that stETH is not redeemable for ETH.

Approach:

We first held a crisis messaging session to clarify Lido’s positioning and educate journalists about the distinction between stETH and ETH. 

After defining this narrative, a targeted list of ‘friendly’ journalists from both mainstream and crypto trades to disseminate this message effectively.

Result:

Successful briefings with tier-1 trade (The Block, CoinDesk, Decrypt) and mainstream publications (Bloomberg). 

The campaign resulted in features in Coindesk and The Block, with the highlight being an article in Coindesk titled “No, Lido is not the next Terra”, which helped to control the narrative and distinguish Lido’s situation from the Luna/Terra incident and shift the tides of the discussion in Lido’s favour.