Crypto ads make a comeback amid soaring Bitcoin prices

Recent CoinDCX and CoinSwitch ads that appeared in newspapers.

Advertisements by prominent crypto exchanges and investment platforms such as CoinDCX and CoinSwitch are making a comeback with Bitcoin prices hitting all-time highs in recent months, signalling a possible boom this year.

These advertisements are returning almost two years after the self-regulatory body, the Advertising Standards Council of India (ASCI), came out with guidelines following the scrutiny of the then crypto ad campaigns. The probe concluded that the campaigns were irresponsible and did not disclose that crypto assets are high-risk investments.

But this time around, industry founders and top executives told Moneycontrol that the new set of advertisements are more focussed on educating users about crypto, before trying to on-board them.

So far, the advertisements have mostly appeared in newspapers.

Ashish Singhal, Co-Founder, CoinSwitch ,said that newspapers are the first step, and the startup will put ads in multiple media channels as the market grows.

“During the downturn, not a lot of new users came into the ecosystem. But in the bull cycle, while older users continue to double down, new users too look into the market and see whether it is right for them or not. And that's where ads make sense. The wave of ads  goes out with every bear cycle,” he told Moneycontrol.

Over the past few months, Bitcoin has seen an unprecedented surge in prices, crossing $73,000, mainly due to the approval of Bitcoin spot ETFs by the US SEC, driving a lot of institutional investments. Additionally, the industry is also gearing up for the next Bitcoin halving event in April.

Halving happens approximately every four years, where new Bitcoins are mined, but the reward for mining halves.

WazirX maintained that unlike its peers who had earlier (in 2021) roped in A-list Bollywood actors like Amitabh Bachchan, Ranveer Singh, and Ayushmann Khurrana, they weren’t big on advertisements.

“We didn’t hire actors or make crazy claims. Our path to customer acquisition is education. We want users to understand their risk appetite before getting into crypto. We are not FOMO-ing them into investing. Coming into crypto without adequate knowledge will inevitably make you lose money,” Rajagopal Menon, VP, WazirX, told Moneycontrol.

Menon added that crypto players are “not the government’s favourite children,” and are being seen with a “magnifying glass.''

“The ASCI’s guidelines are pretty stringent. It would be foolish  to make over-the-top claims. Crypto startups are becoming more circumspect instead of going overboard, plus the government is keeping an eye on what’s happening in the sector,” he explained.

While CoinDCX hadn't released print ads in the past couple of years, it had built  event IPs like Namaste Web3, a 10-city roadshow to create awareness around emerging technologies like Web3.

Now, with print ads coming back, a company spokesperson said, “We have also shifted the narrative of our current ads to be more educative for users.”

Brand strategists found the newer ads “sober,” in terms of making tall claims about huge returns, unlike the crypto ads during the previous bull cycle of 2021.

“The overall tone seems to be about cautiously wooing investors back after going severely overboard two years ago,” said Karthik Subramaniam, a communications strategy consultant.

According to Subramaniam, until two years ago, certain crypto brands had ad captions that "sounded like a lottery scheme."

For instance, CoinDCX's old ad said, "Bitcoin worth Rs 50 Lakh to be won every day," and CoinSwitch's caption used to be "Aaj nahi toh kal, kuch toh badlega (things will change, today or tomorrow)."

The current ads  seem  sober, focussing on user safety and trying to build trust by mentioning TDS,  tax filing support, ISO / IEC certification, etc.,” Subramaniam told Moneycontrol.

Subramaniam highlighted that the recent surge in advertisements was preceded by a steady stream of articles by senior crypto executives. “Most probably initiated legitimately by  PR agencies representing crypto firms in India, as a precursor to the marketing campaign,” he added.

Harish Bijoor, a brand strategy specialist and Founder, Harish Bijoor Consults, believes there is a “yo-yo sentiment” on crypto advertising.

“The stance is not solid. With crypto prices reviving, there seems to be a loosening of sentiment on what is allowed to be advertised and what is not,” he said.

The 12-point guidelines were released in February 2022, following aggressive ad campaigns by crypto exchanges in the previous bull cycle.

One of the most important guidelines was to carry a disclaimer in every ad stating, "Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions." The disclaimers should be prominently visible to the average consumer.

The guidelines had also prohibited the use of words like ‘currency,’ ‘securities,’ ‘custodian,’ and ‘depositories.’ Additionally, the ads were barred from showing minors dealing with virtual digital assets.

Singhal said the new ads are mindful of these guidelines. “There are many nuances which are a part of the script (referring to video ads) now. For instance, you can't talk about assured returns and things like that,” he said.