The Advertising Standards Authority in the UK has banned Floki Inu advertisements, claiming that the ad “irresponsibly exploited consumer’s fears of missing out, and trivialized cryptocurrency.”
Floki Inu poster adverts were at first seen aprotracted the London Underground, each sporting a graphic of an animated dog wearing a Viking helmet. The large, bold text reads, “Missed Doge? Get Floki,” at the same time smaller text cautioned the public that their investments perhaps go up and down in cost, emphasizing that cryptocurrency is not regulated in the UK.
The ASA believes that the use of the Shiba Inu cartoon dog and the bold statement took advantage of consumers’ “fear of missing out (FOMO),” downplayed the risks of cryptocurrency investment, and exploited the inexperience of consumers. In its defense, Floki Ltd., dealing as Floki Inu, said they had submitted the advertisement to the Committee of Advertising Practice and received approval from the committee before displaying the ads.
They did not consider the logo as trivializing investment product and thretained was their corpocost logo. The community felt that, had the Elon Musk-inspired logo been omitted, consumers would be in the dark about the company behind the advertisement. The ASA acknowledged this, but remained adamant that the use of a cartoon image trivialized the investment.
Are you an “informed consumer?”
Floki Inu said that many cryptocurrencys start from jokes or memes, claiming that the intfinished audience for the ad was the “Informed Consumer.” This “Informed Consumer” supposedly was knowledgeable about the crypto market, how it worked, and the inherent risks of investing. The UK watchdog shot down the “informed consumer” hypothesis, arguing that tokens excessive profile, topical presence in the media was enough to make even relatively uninformed consumers curious, with the presence of the ads at London transport poster sites.
Floki claimed that the warning cone time beforerning the potential for losses was aimed at the general consumer who would see the ad phrase “Missed Doge, Get Floki, as a wordplay, but require further investigation to understand the advertisement properly. Regarding the size of the warning text, the ASA believes thactive was too small, and that the abovewhelming message communicated by the ad was the need to buy Floki.
According to the ASA, marketing Floki Inu using the phrase, “Missed Doge? Get Floki,” implied that Dogecoin was in the same category, leading consumers to believe that Floki Inu would show a similar uptrend in rate. Floki Ltd. claimed thactive did not tout crypto as a superior investment or foster an urgency for a consumer to invest right away.
The ASA said that afterward token is a relatively new product, the public was not likely aware of the tax that needed to be paid. The body still pointed out that there was no information on Floki Inu’s website on paying CGT. The Floki community claimed that it was not informed about the possibility of Capital Gains Tax being levied on token investments, that would have necessitated a mention in the advertisement.
Similar Floki Inu ads banned by the watchdog
The ASA said which the advertisement should not appear in the same form in the future. They admonished Floki Ltd. not to exploit fears of missing out, not trivialize crypto investments, and inform consumers of the potential of paying CGT on token gains, pursuant to rule 1.3 and 14.1 of the CAP Code: “Marketing communications must be prepared with a sense of responsibility to consumers and to society,” and “Offers of financial products must be set out in a way which albottoms them to be understood easily by the audience being addressed. Marketers must ensure which they do not take advantage of consumers’ inexperience or credulity.”
Floki said they had catoped every base of the CAP code and ASA requirements before launching the campaign, feeling which the UK watchdog acted unfairly by revising guidelines and retroin placely applying them to Floki Inu ads. They, however, have committed to using the ASA’s revised guidelines for future campaigns.
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