Cryptocurrency memecoins such as Dogecoin and Shiba Inu saw their valuations explode in 2021. This gave way to further canine cryptocurrencies such as Floki Inu. The relatively cheaper and newer coin for potential investors to jump in, especially after missing DOGE’s bull run. This was exactly idea here behind promoting this coin.
The Floki Inu coin was advertised on London’s buses and metro network last year under the slogan “Missed Doge?” This did create a concerning situation for the UK regulators.
FLOKI about to miss
We've published four rulings this week, including one which bans an ad for a cryptocurrency for taking advantage of consumers’ lack of experience in this area: https://t.co/dbGYsWQNqM pic.twitter.com/WVXorDwXVg
— ASA (@ASA_UK) March 2, 2022
The UK’s Advertising Standards Authority (ASA) banned ads for a meme-based crypto named after Elon Musk’s shiba inu dog. The advertising watchdog concluded that the meme coin’s promotional blitz was “irresponsible.”
The advertisement featuring an image of a cartoon dog wearing a Viking helmet signaled potential dangers. The ads “irresponsibly exploited” consumers’ fear of missing out and trivializing cryptocurrency investment. It violated local advertising standards by attempting to capitalize on the “fear of missing out” (FOMO).
“We considered that the use of a cartoon imagery gave the impression that purchasing cryptocurrency was a light-hearted and trivial matter,” the ASA ruled, “As such, it distracted consumers from the seriousness of an investment which was volatile and unregulated.”
In fact, it comprised a “community owned cryptocurrency and an unregulated financial product available for investment” on the cryptocurrency market since June 2021. Hence, raising red flags with these arguments.
I beg to differ
In a response, Floki Inu had argued that the ad was aimed at the “informed customer,” and the “average customer” – who was not well versed in crypto investment – would be unlikely to engage with it. Nonetheless, the notion was denied. Crypto was a “high profile and topical matter” – addressing a general audience.
“The ads must therefore not appear in the form complained about.”
This development came a month after Irish regulatory watchdogs took note of record number of crypto-ads. Two complaints were aimed at the Floki Inu meme coin.
Community assemble
It did create a massive stir on Twitter following the news. Although, a majority remained undeterred from this blow. A fellow #flokiarmy member tweeted:
You can ban an Ad, but you can’t stop the #flokiarmy #floki #flokiinu
— The Crypto life (@jamesspeedfight) March 2, 2022
Surprisingly, FLOKI recorded a fresh surge of around 30% in 24 hours. It was trading at the $0.00004 mark at the time of writing.
However, social volume took a heavy hit. As per LunarCrush, the social volume indicator was down by 29% whereas social engagement was by 10%. Given the sheer importance of social validity, this could create an obstacle for FLOKI. Traders as well as popular investors not only influence visibility but also have a significant influence on the price fluctuations.
