The Floki Inu development team recently purchased ad space on London’s underground train and bus stations. The ads ran for several weeks, but they seem to have attracted the attention of authorities in the country, who are now planning on banning similar ads in the future.
Floki Inu is one of the many mimics of Dogecoin (DOGE/USD) that have gained immense popularity in recent months. However, it is more of a speculative asset because it lacks use cases, making it a highly risky investment.
London cracking down on crypto ads
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The Floki Inu development team has been popularizing the meme coin and increasing its engagement with the UK crypto community. However, because of the highly risky nature of this coin, advertising it to such a large audience could lead to major losses to people who are not aware of the highly volatile nature of cryptocurrencies.
The London transport authority is now cracking down on such crypto ads to prevent investors from being misguided. According to the Head of commercial media at TfL, Chris Reader, cryptocurrencies that want to run ads in the city will have to undergo an investigation before their ads are displayed.
Reader noted that for such campaigns to be approved, they needed to comply with TfL’s policy and comply with the guidelines of the Advertising Standards Authority (ASA).
Unregulated ads could lure inexperienced investors
Meme coins have attracted much attention this year following the major gains that have been made by Dogecoin and Shiba Inu. This has led to the creation of mimic coins that have all been created from the original concept of Dogecoin.
The current Floki Inu ad is not the first to appear in London before being blocked by regulators. Earlier this year, the Luno app also displayed an ad message on the public transport network urging people to buy Bitcoin (BTC/USD).
The ad was quickly taken down by ASA, with the regulatory body stating that such advertisement campaigns can be misleading to new investors who do not know the potential risks that come from crypto investments.
Moreover, most of these ads are straightforward and only address the audience by urging them to invest in certain crypto. However, they fail to mention the risky nature of cryptocurrencies.
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