Crypto Exchanges Turn To Targeted Campaigns To Calm Investor Nerves

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Cryptocurrency exchanges are turning to targeted advertising and marketing campaigns to ease the nerves of investors abandoning their investments amid regulatory uncertainty over virtual currencies.

Some of the exchanges, including CoinDCX and CoinSwitch Kuber, have revived advertising and marketing campaigns, although not as aggressively as before, industry insiders have said. In most cases, ads are served on social media and other digital platforms.

The exchanges had suspended ads, after an advertising blitzkrieg in recent months that was criticized for being joke and misleading by many. The government, which has also raised concerns about the lack of transparency in crypto ads, is working on legislation for the sector. Meanwhile, ET reported Thursday that the Indian Advertising Standards Council is in talks with the government to include adequate risk disclosure in crypto ads to ensure that consumers do not mistake these products for legal tender.

According to a person at the Blockchain and Crypto Assets Council, an industry advisory body, several exchanges wanted to restart advertising, particularly targeting their existing investors. Some of them are looking to run ads across all platforms in the coming week as they hope to get some clarification on the legality of crypto assets.

CoinDCX and Coinswitch Kuber did not respond to ET’s queries.

A spokesperson for WazirX said the exchange had not relaunched any advertising but was focusing on “investor education campaigns”. She said: “Crypto is a new market in India and for our investors we have made sure to keep all of our communication channels open across all mediums and social handles.”

It is estimated that Indian cryptocurrency exchanges collectively spent over 50 crore in the recent ICC T20 World Cup, ET reported last month.

The ad blitz may have heightened government and regulatory concerns about virtual currencies and the ads that promote them, industry trackers said.

“While new ads are basic ads that educate about the exchange or there are marketing campaigns targeting existing investors. The ad spend for the industry is not as big as it used to be,” ET told ET someone who knows about the problem. “We will wait for the government to develop the guidelines and we will comply and act accordingly.”

There has been a decline in new listings on cryptocurrency exchanges as potential investors appear to be cautious until regulatory clarity emerges from the asset class.

New user registrations are a matrix used to rate crypto companies.

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