The Advertising Standards Authority (ASA) in the UK recently issued rebukes to multiple companies operating in the cryptocurrency industry. The list of companies, which includes the likes of Luno, eToro, and Coinbase, were warned by the ad regulator due to misleading promotions. According to the ASA, the promotions weren’t informing audiences sufficiently about the risks associated with cryptocurrency investments. The companies were also making the most of the inexperience of consumers, according to the ad regulator.
Papa John’s, a famous pizza chain, has also been warned by the ASA. In May, the pizza chain was offering consumers $13 in Bitcoin if they placed orders amounting to more than a particular amount. Papa John’s responded, claiming that the company had been associated with cryptocurrencies for a long time. In May 2010, the chain sold two pizzas that were reportedly Bitcoin purchases.
As the cryptocurrency industry makes its presence felt in the mainstream, such rebukes may grow more frequently. Many people new to cryptocurrencies don’t understand the risks involved in dealing with them. For a lot of people, dealing in cryptocurrencies is perceived as a way to become overnight millionaires.
However, the truth is that the global crypto market is still incredibly volatile. Sure, there are several success stories of people who have reaped huge rewards by selling cryptocurrencies that have soared in value. However, many have lost a lot of money as well due to the erratic nature of the crypto market. So, if you’re new to cryptocurrencies, it’s best to tread the waters with caution, despite what the promotions of crypto companies claim.