To calm the concerns of investors who are quitting their virtual currency investments due to regulatory uncertainty, cryptocurrency exchanges are turning to targeted advertising and marketing initiatives.
Industry sources say that several exchanges, including as CoinDCX and CoinSwitch Kuber, have resumed advertising and marketing activities, but not as vigorously as before. The advertising are often broadcast on social media and other digital venues.
After an advertising blitzkrieg in recent months that was widely criticised as puffery and deceptive, the exchanges had paused commercials. The government is working on laws for the industry, which has also sparked worries about the lack of transparency in crypto advertisements. Meanwhile, the Advertising Standards Council of India was in talks with the government on Thursday to include proper risk information in crypto commercials so that people don’t confuse these items for legal cash, according to ET.
Several exchanges sought to resume advertising, according to a member of the Blockchain and Crypto Assets Council, an industry advisory organisation. They intended to target their current investors in particular. In the following week, several of them plan to launch advertising across platforms in the hopes of gaining clarity on the legality of crypto assets.
ET reached out to CoinDCX and Coinswitch Kuber, but neither company responded.
WazirX has not resumed advertising, according to a spokeswoman, and is instead focused on “investor education programmes.” “Crypto is a new industry in India, so we’ve made sure to maintain all of our communication lines available across all platforms and our social handles for our investors,” she added.
According to a report published by ET last month, Indian bitcoin exchanges spent more than Rs 50 crore during the just ended ICC T20 World Cup.
According to industry watchers, the ad blitz may have heightened political and regulatory worries about virtual currencies and the advertising that support them. As a result, the exchanges decided to refrain from running advertising until regulatory clarification was achieved.
“While the new advertising are basic in nature, informing investors about the exchange, there are also marketing initiatives aimed at existing investors.” “The sector’s advertising budget isn’t as big as it used to be,” a source close to the situation told ET.
“We’ll wait for the government to set the rules, and then we’ll comply and act,” this individual stated.
New sign-ups on cryptocurrency exchanges have decreased, indicating that potential investors are waiting for regulatory clarification on the asset class.
A matrix is used to appraise crypto firms based on new user sign-ups.
Many bitcoin exchanges are also waiting for the government to publish advertising rules.
The administration is likely to do so within the next month, as well as establish a broad framework for cryptocurrencies.
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Article Credits –
economictimes.indiatimes.com
