As Bitcoin prices soar to all-time highs in recent months, advertisements by prominent crypto exchanges and investment platforms are making a comeback, signaling a potential boom in the crypto market this year.
These ads are reappearing almost two years after the Advertising Standards Council of India (ASCI) issued guidelines following scrutiny of earlier crypto ad campaigns. The previous campaigns were criticized for being irresponsible and failing to disclose the high-risk nature of crypto investments.
However, this time around, industry founders and top executives emphasize that the new advertisements focus more on educating users about crypto before attempting to onboard them.
According to Ashish Singhal, Co-Founder of CoinSwitch, the ads are initially appearing in newspapers, with plans to expand to multiple media channels as the market grows. Singhal explains that during downturns, fewer new users enter the ecosystem, but in bull cycles, both existing and new users show interest, making ads relevant again.
The resurgence in Bitcoin prices, reaching over $70,000, is attributed to factors such as the approval of Bitcoin spot ETFs by the US SEC and anticipation surrounding the upcoming Bitcoin halving event in April.
Unlike previous ad campaigns featuring A-list Bollywood actors, platforms like WazirX prioritize education over flashy claims. Rajagopal Menon, VP at WazirX, emphasizes the importance of helping users understand their risk appetite before investing in crypto, rather than relying on fear of missing out (FOMO) tactics.
Despite the return of print ads, platforms like CoinDCX have shifted their narrative to focus on educating users. Similarly, CoinSwitch emphasizes user safety and trust-building elements like TDS, tax filing support, and ISO/IEC certification.
Brand strategists note that the newer ads are more cautious compared to the previous bull cycle, focusing on user safety and trust-building rather than making extravagant claims.
However, experts remain wary of the resurgence in crypto advertising, with concerns about loosening sentiment and potential regulatory scrutiny. The ASCI guidelines issued in February 2022 mandate disclaimers on the high-risk nature of crypto products and prohibit the use of certain words and depictions in ads.
Overall, while crypto ads make a comeback amidst soaring Bitcoin prices, platforms are taking a more cautious and educational approach, mindful of regulatory guidelines and the need to build trust among users. As the crypto market continues to evolve, staying informed and educated remains crucial for investors navigating this dynamic landsc