The UK Advertising Industry Regulatory Agency, Advertising Standards Authority (ASA), has claimed that the BitMEX exchange has published a misleading advertisement on the front page of a newspaper.
Apparently, the ASA received at least four complaints from the public. In these it was claimed that the ad concerned overstated the return on investment in Bitcoin and that it “did not illustrate the investment risk”.
The advertisement in question was titled “The two sides of the coin: in the near future, the money will reach a crossroads.” The announcement includes a graph of Bitcoin price developments over the past 10 years on a logarithmic scale, which has left the impression that BTC value has risen sharply and steadily in recent years.
But, given the fact that BTC’s value has “fluctuated dramatically” in recent years, ASA
“He considered that the readers of the ad could be misled about the value and stability of Bitcoin in recent years and, therefore, to what profits he could have obtained the investments he had previously made.”
Clear promotion without risk information
The accompanying text, written by BitMEX CEO Arthur Hayes, stated:
“Despite price volatility and a chaotic ecosystem, the Bitcoin protocol seems robust. And although the road ahead will be difficult, there is reason to believe that Bitcoin still has a chance at glory. “
The SAA argued that this is “clear” promotional content, which does not warn consumers about any risks.
The misleading ad was overstated on return on investment (ROI). It failed to illustrate the risk of the investment, so the agency concluded that it violated the current Code. As a result, the BitMEX creative was withdrawn.