The UK Advertising Standards Authority (ASA), amid tightening control over the circulation of cryptocurrencies, is trying to limit the distribution of meme digital coins.
The UK ad standards regulator has banned ads for a cryptocurrency named after Elon Musk’s Shiba Inu dog. The UK advertising regulator concluded that the Floki Inu ad “irresponsibly exploited” the British fear of missing out and forced investors to recklessly invest.
Last year, the Floki Inu coin was advertised on London buses and the Underground with the slogan “Missed the Doge? Get Floki.”
According to the ASA, the ad suggested that investors who did not buy Dogecoin in time should invest in its newer alternative, Floki Inu, implying the rapid rise in price of the meme token. The Floki Inu team denied the psychological pressure on investors through advertising and argued that the ad was aimed at the “informed customer”, and the “average buyer” who is not well versed in cryptocurrency investments would not be interested in Floki Inu.
Despite the company’s assurances, the ASA concluded that since cryptocurrency is a “high-profile and topical issue” and the ads were addressed to a “general audience”, the ads should not be presented in a format that causes fear of lost profits among investors.
In January, the UK Treasury Secretary said that advertising of cryptocurrencies should be controlled and comply with the standards that apply to insurance products. In December, the UK Advertising Standards Authority banned advertisements for Coinbase Europe, Kraken, eToro, Luno Money, Exmo Exchange and Coinburp due to a lack of warnings about the risks of cryptocurrencies. Despite pressure from regulators, the Floki Inu team announced their intention to launch on TV in the US and Turkey in February. 15-second commercials will be broadcast on the most popular TV channels.
Source: Bits
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