Advertisements by crypto companies have tended to attract negative attention. Governments and regulators believe that these advertisements exaggerate the potential for the upside. It is felt that they do not adequately highlight the risks associated with crypto investments.
Crypto Super Bowl Ads – The Objections
Several crypto companies carried advertisements during the super bowl. The prominent names included Coinbase and FTX among many others. These ads came in for appreciation for their innovative approach. The ads dominated social media and the news channels.
However, the chief of the senate banking committee was enraged by the ads. He felt that it was improper for the advertisers to not warn the investors of the associated risks. He was speaking during the senate’s hearing on stablecoins. His ire was with the fact that the firms failed to disclose that cryptocurrencies are prone to volatility. Also, that there have been numerous cases of fraud and the sector is poorly regulated.
The senate committee chief added that the firms were just chasing profits by using the Super Bowl to reach a wide audience. His argument was that if crypto was indeed money, why should there be a need to advertise – the US Fed never advertises to encourage people to buy dollars.
However, crypto supporters were not cowed down. They responded saying that fiat currency too is also not totally secure against fraud. Their issue and circulation are also opaque, and they are also used for illegal and criminal activities. The supporters claimed that the senate chief’s comments stemmed from a lack of knowledge of crypto currencies.
The chief of the senate committee also recommended against stablecoins claiming that they were risky investments.