The UK Advertising watchdog Advertising Standards Association (ASA) has banned seven crypto advertisements.
ASA said the reason for imposing on ban on the ads was because they “irresponsibly took advantage of consumers’ inexperience and for failing to illustrate the risk of the investment.”
The banned ads include a website and a Twitter post from a pizza chain. Also, it includes a digital poster from a crypto exchange.
Crypto exchanges and crypto trading platforms had the majority of the banned ads. It includes companies like eToro, Coinburp, Coinbase Europe, Luno Money, Exmo Exchange, Payward, and Papa John’s GB.
Papa John’s website ad stated, “Free bitcoin worth £10 [$13]” and “Save £15 when you spend £30 or more & get £10 worth of Bitcoin from Luno!”. The pizza chain added that this meant to mark the day when two pizzas sold at 10,000 Bitcoins in May 2010. If you factor it in with today’s pricing, it will turn out at $482 million!!
Besides this, the pizza chain argued that the ad did not comment on investing in Bitcoin. However, ASA concluded that the offer “trivialized” a “serious and potentially costly financial decision.”
Moving on to the Coinbase promotion, it stated, ” £5 in bitcoin in 2010 would be worth over £100,000 in January 2021. Don’t miss out on the next decade — get started on Coinbase today.”
In their ruling, ASA argued that the ad implied a guaranteed increase in Bitcoin’s value and did not factor in the past performance. Moreover, they said that past performance isn’t necessarily a guide for future performance.