According to coinmarketcap, thousands of crypto assets and projects are available today, thus causing stiff competition in crypto. Every other month, more wallets, exchanges, mining, trading bots, and many new projects arise, aiming to provide top services. However, very few projects successfully hit mainstream adoption. The main reason behind the lagging success of many crypto projects is poor advertising options. Some crypto platforms choose advertising networks that don’t follow the necessary guidelines of any legal and successful advertising. This guide will highlight some of the basic regulations and rules that an advertiser must adhere to when marketing crypto projects. Understanding these regulations will help crypto project developers choose the right platform for their project advertising.
Honesty is a Must
When marketing any products, honesty on the part of the project endorser is a must. In some cases, projects select endorsers who give out false information since they have not used the product. However, when selecting an endorser, it’s essential to choose a person who has used the services to provide reliable information.
When talking about honesty, users should understand that providing misleading information is prohibited. Misleading information is any information that in entirety or partially is a lie. Crypto projects in some jurisdictions can face legal charges for dishonesty.
No Purchasing Pressure to Customers
Pressuring customers to buy your products or services is a violation of the person’s decision-making process. Generally, a consumer should, on their own, decide to or not to purchase the product based on the merits of the products.
As such, when advertising, ensure you leave the purchasing decision to the service buyers. Pressuring customers to buy your products or services even in the crypto world can have severe legal consequences.
False Limited Offer or Bait Advertising
Advertising based on limited offers is generally a good marketing technique. However, if the limited offer advertising is based on a false premise that the products will be available only for a short period, it becomes illegal. On the other hand, Bait advertising involves luring people to purchase a product at special costs.
However, the products or services in question are unavailable at the time. Instead, it’s a marketing scheme to attract people to your website or shop. In some jurisdictions, consumers can sue crypto businesses for giving out false advertisements. Some businesses could be forced to pay enormous fines for providing false advertising options.
Misleading Comparative Advertising
Comparative advertising techniques involve the comparison of two products proving how one thrives over the other. However, in some cases, the advertisers may start making misleading comments about a particular product to prove how poor the services are. In that case, they are doing false/misleading comparative advertising.
When advertising, if you use misleading information about a competitor – that is wrong and, in most jurisdictions, illegal. In other jurisdictions, a crypto project can sue the advertiser for the wrongful presentation of the product.
Price Advertising Limitations
Businesses or platforms are allowed to sell their goods at a loss, especially when getting rid of old, less profitable stock. A merchant can sell the products at a loss and use the funds to get new products.
However, there are some limitations to price manipulations. It’s illegal for a merchant to reduce the prices of products or services to kill off their competitors (predatory pricing)
Guidelines for Privacy and Security
Laws of Privacy
Security and Cloud Storage
Marketing the platform should also provide maximum security to the details of the client. The most popular way of protecting your client’s data is using the SSL mechanisms to ensure a good connection between the service provider’s webpage and the clients.
If you are using online-based storage, i.e., cloud storage, you have to assure the average users that their data will be stored safely and conveniently. Generally, a crypto business needs to use the best storage facilities with an excellent reputation to assure investors of their privacy.
Moreover, since some platforms collect information, they should stipulate the type of information they collect, protection policies, and sharing policies.
As the online business industry continues to grow vastly, the need for advertising has continually increased. However, some platforms providing advertising services tend not to follow the required guidelines set by different jurisdictions of healthy advertising. Most platforms use illegal advertising techniques that provide misleading information to the average product buyer.
Some crypto marketing platforms are also using the wrong advertising practices, including misleading comparative advertising. Some tend to compare the services they deliver to the services provided by some of their competitors, and in some cases, implant lies to sell more.
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