Crypto Exchanges’ Ad Spend a Rs.50 crores in WC CoinDCX Top Spender

Indian cryptocurrency exchanges collectively spent more than Rs. 50 crores during the recently concluded ICC T20 World Cup.

The blitz, dominated by CoinDCX, may have heightened government and regulated government and regulatory concerns over virtual currencies and the commercial that promote them, according to some experts.

Data shows that cryptocurrency exchange CoinDCX advertised seven timers per match on every channel during the tournament, spending a total of Rs.40 crores on sponsorship in Star Sports. Rival Coinswitch Kuber focused on Star’s video-streaming service, Disney+Hotster, during the World Cup. The ad spends by other exchanges such as WazirX is Rs. 4-6 crores.

With about 50 advertisements per match across all channels, CoinDCX had a total inventory of close to 10 hours on TV, according to information from TAM Sports, a division of TAM Media Research.

Data for the first 42 matches also shows the cryptocurrency exchange had a 4% share of overall ad volume during the tournament.

Coinswitch Kuber, which had a sponsorship deal with Disney+Hotster, spent over Rs.10 crores, said people with knowledge of the matter.

CoinDCX and Coinswitch Kuber didn’t respond to queries.

This was the first time that cryptocurrency exchanges have gone on such a binge during a major sports event in India. Media experts said TV advertisements by cryptocurrency exchanges soared in the past month.

The matter came up at a meeting on Saturday chaired by Prime Minister Narendra Modi and attended by officials from ministries and regulators, including the Reserve Bank of India (RBI), which is said to have reiterated its advocacy of a ban. Those at the meeting raised concerns, noting that “non-transparent and misleading” advertisements need to stop.

DRAWING UP RULES

The government is likely to approach the Advertising Standards Council of Indian to push for greater disclosures and stricter statutory warnings to accompany ads on virtual currencies or their trading platforms.

Legal experts also raised red flags over the ads, worried that these may suggest guaranteed returns or make exaggerated claims. “The new regulation makes celebrities advertising a product liable in the event of a future fraud or litigation. Celebrities advertising cryptocurrencies would be covered under this as well,” said a senior lawyer advising leading crypto exchange.

Currently, there are no regulations on cryptocurrencies. The government wants to regulate crypto assets and could be looking to come up with a framework as early as December, said people with knowledge of the matter. It wants crypto exchanges to stop “misleading the youth” through such advertisements, said one of the people. S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *