UK Regulator Bans FlokiInu Ad for being Irresponsible
- by Dante Reese
The advertising authority in the United Kingdom has banned an advertisement pertaining to cryptocurrency FlokiInu. According to the UK regulator, the ad is designed to exploit the fear of missing out (FOMO) that consumers experience and attempts to trivialize investment in crypto. The regulator further added that the advertisement was also irresponsible and had tried to take advantage of the credulity and inexperience of users. The Advertising Standards Authority (ASA) published their ruling regarding the advertisement on Wednesday. The Floki ad had first appeared last year in London on public transport.
The ad campaign is for flokiinu (FLOKI), which has been inspired by ShibaInu and it had come under the investigation of the advertising authority in the previous year in November. The ad comprises of a logo for the flokiinu cryptocurrency and has text that says ‘Missed Doge? Get Floki’. There is also further smaller text that you can find at the bottom, which claims that the investment can go both up and down in value and that crypto is not regulated in the United Kingdom. The ASA ruled after an investigation that the image of a cartoon dog that’s wearing a Viking helmet and the statement is exploiting the FOMO people may have experienced because of Dogecoin.
The ASA went on to say that they had informed the team behind the crypto flokiinuto avoid exploiting the fear of missing out that many consumers experience and to not trivialize crypto investment. The team should also ensure that they do not take advantage of the lack of experience of consumers, or their credulity by not informing them about the CGT that could be applicable on crypto profits. The ASA stated that the ad would not be permitted to appear in the same format.
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In addition, the advertising authority also said that the disclaimer that was mentioned at the bottom of the ad is also quite small, as opposed to the size of the text of the ad itself. Thus, the ASA said that even though the qualifying text was there, the overall impression of the ad was that people need to invest in flokiso they do not miss out on the crypto in the same way that they could have missed out on dogecoin. This is not the first time that the ASA has taken action against crypto ads.
The British advertising authority has become proactive in its crack down on misleading ads related to crypto. Seven crypto ads had been banned by the Authority back in December, which were for Exmo, Etoro, Kraken, Coinburp, Luno, Coinbaseand Papa John’s Pizza. The aim of the authority is to ensure consumer protection, as a lot of advertisements lure people in to invest in crypto, but they are not aware of the risks associated with these digital assets. This can have disastrous consequences in the future when they actually have to deal with these risks. It has become important because of the widespread use of crypto.
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