cryptovibes.com
Changpeng Zhao believes that most of the crypto demand and user adoption comes from word-of-mouth marketing. Thus, the Binance CEO is convinced that the growing limitations and restrictions on cryptocurrency advertisement will not affect the demand.
In his interview with CNBC, Zhao insisted that physical cryptocurrency advertisements and crypto ads, in general, do not have a lot of effect on user growth. It has just become common in the last several years. He stated that most of the crypto adoption comes from ‘word of mouth’ marketing.
He also said that key advertising services like Facebook and Google had not authorized crypto ads for the longest time. Therefore, it is quite clear that advertisement does not play a major role in the adoption or demand of cryptocurrencies. Zhao also said that the series of regulatory clampdowns on crypto ads just shows that there is growing demand. He added:
“Clampdown on crypto advertising is unlikely to have much of an effect on demand, as most of the crypto users come from word-of-mouth promotions anyway.”
The comments by the CEO come amid some growing restrictions and a slew of actions that are taken by different nations in the last several weeks. Most recently, Singapore issued some new guidelines for crypto firms, banning crypto advertisements in public spaces.
The Monetary Authority of Singapore also banned crypto service providers from opening cryptocurrency ATMs. After that ruling, many crypto ATMs in the nation have already shut down. On its part, the United Kingdom advertisement watchdog Advertising Standards Authority also continued with its crackdown on various misleading crypto adverts as it banned two ads from Crypto.com.
The Spanish authorities, on the flip side, have decided to look for ways to introduce new regulations for crypto advertisements. Authorities have shared their fears over the misleading content of crypto adverts, where a majority of the crypto companies are accused of highlighting huge returns while mitigating or downplaying the risks that come with crypto investments.
Another huge hiccup is the lack of clarification over the cryptocurrency regulations in most nations. That scenario makes crypto adverts a bigger issue for regulators around the world.