The virtual economy is increasingly present in our daily lives. The words ‘cryptocurrency’, ‘Bitcoin’ or ‘NFT’ are starting to become part of our everyday vocabulary, especially among the youngest, who are constantly bombarded by advertisements (promoted or not) of virtual currencies.
Social networks have become the main speaker for cryptocurrency trading companies. It is not uncommon to follow an influencer or YouTuber who from time to time incites their followers to invest in cryptoassets through their publications.
Or scrolling through Twitter or Facebook and suddenly there are promotional posts about Bitcoin or Ethereum, the two most popular currencies.
Cryptocurrencies are digital money that can be traded with the best Kraken trading bot fully automatically. Some say it will be the money of the future, but its use still involves too many computer security issues.
Since it became popular, numerous scams have been detected that have led to the loss of millions of dollars. The main person affected? The small investor.
The regulation of cryptoassets advertising
The regulation of cryptoasset advertising groups from academies and training or consulting services, to platforms for buying and selling digital assets or even projects that promote their own currency.
It is a very wide range and also very new, and it seems to me not only correct if not necessary to protect the consumer from possible bad practices.
Global regulation of cryptocurrency advertising would be the first step towards a more extensive regulation of a sector that is still very new. Advertising of financial products have is regulated, so cryptoassets could not be less.
At the end of the day, people’s savings are being gambled with, and what’s more, an advisor is not involved, but rather the user’s contact is directly with the platform. Until now, cryptocurrencies were outside the financial regulatory framework.
This has caused a sense of freedom in terms of advertising cryptocurrencies, which has led to toxic, harmful, and incomprehensible assets being placed for people.
How will the promotion of cryptocurrencies by ‘Influencers’ be regulated?
Is an Instagram post in which an influencer recommends investing in bitcoin advertising or not? In social networks, the line between what is advertising and what is not is very thin, since it will be more difficult for the recipient to identify whether it is an advertisement or a simple recommendation.
Precisely the rise of influencers, athletes, actors, and actresses in advertising campaigns for cryptoassets, training services, or exchange platforms has been the definitive trigger that has put regulators on alert.
In this regard, public figures will also be subject to this regulation when their comments are paid.
Unpaid messages are excluded due to freedom of expression, although special attention will be paid to the tone of the message, whether it encourages investment in these assets or whether it is just corporate advertising.
“If there is an economic or in-kind consideration (directly or indirectly) behind a publication in a social network, it is understood that it is an advertising and has to be identified as such. Otherwise, it could be interpreted as disguised advertising,” say crypto experts.
PSG paid for part of Messi’s transfer with cryptocurrencies
PSG paid for part of Messi’s signing with cryptocurrencies as a promotional strategy for its own cryptocurrencies, PSG Fan Tokens.
This caused interest in this currency to skyrocket among the French club’s fans. Specifically, the PSG token soared more than 130% in just five days in the face of speculation over the Argentine’s arrival at the club.
In 2017, the Argentine became one of the global ambassadors of the brand and its Finney Phone, a smartphone-based blockchain technology ideal for people investing with cryptocurrencies.
In the world of football, there are several players who promote cryptocurrencies. Ronaldinho is one of them. In his Twitter profile, he is publishing content related to cryptoassets.
One of his latest promotions is related to the Atari Token (ATRI), the cryptocurrency of the video game company Atari. In a post on Twitter, Ronaldinho shared the Atari Token logo with the phrase “Atari Token $ATRI to the moon”.
Matt Damon’s ad
Crypto.com is perhaps one of the most well-known cryptocurrency exchange platforms in the world. Its marketing policy is very aggressive and it is present in virtually all social networks.
Last year, the company spent more than $100 million on advertising, which included the well-known ad starring American actor Matt Damon, who has admitted to investing in Crypto.com. The impact was enormous.
Why are there so many celebrities promoting cryptocurrencies?
Until now, the cryptocurrency market was reserved for a certain sector of knowledgeable people.
The generalization of platforms for buying and selling this type of currency has led the market to expand to a more general audience, with special emphasis on the younger sector.
And what is the easiest way to reach a young audience? Social networks + influencers/YouTubers/streamers.
Advertising on social networks is something very simple and cheap, it’s not like recording a TV campaign. Taking a photo or video with a cell phone and uploading it on a media Instagram account can impact thousands of people instantly and the cost is 0.
So what’s the big deal? Comments, Instagram stories, Twitter, or Facebook posts about seemingly innocent and neutral cryptocurrencies made by influencers can generate a very strong impact on the ups and downs of these markets.
Content generated on social networks related to cryptocurrencies, whether in the form of a post or a comment, is not strictly considered advertising but they are acts that influence, and very much so, the market. That is why it is important to investigate the real intentions of this type of content.