Cryptocurrency is a hot topic in India since people have widely got to know about it. Those with knowledge have managed to gain a good amount of profit, while some have even lost their own savings while investing. A good portion of users are attracted to Crypto because of the advertisements showcased by Crypto Exchanges, which seem to promise profit for the user. However, in a recent meeting chaired by PM Modi, it was noted that such ads for Crypto are misleading and hide the volatile nature of cryptocurrencies. Is this true, or does Crypto promise high returns? Let’s have a look.
During the recent T20 World Cup, many Crypto Exchanges, including CoinDCX and CoinSwitch Kuber, have advertised their exchanges with a positive outcome where the consumer gets a high return from the invested money. Secondly, Bollywood celebrities, including Ayushmann Khurana, Ranveer Singh and more, have regularly been promoting Crypto via ads in collaboration with Crypto Exchanges.
These ads influence the viewer to at least try what the advertisement is about, and they can instantly download the crypto exchange app, verify themselves via KYC and head on for trading. The main aspect of trading the person missed out on is research. Yes, cryptocurrencies also have a volatile nature and not every cryptocurrency is stable. Unfortunately, this information is still missing in the ads made by Crypto Exchanges which makes it harmful to some extent for the end consumer.
Crypto Exchanges, including CoinDCX, KuberSwitch and more, have videos and other helpful information on their website to offer content that help youngsters make informed investment decisions. They also mention in small text at the end of an ad that Crypto is not regulated in India and involves risk. But the main content shown in the ad is being portrayed as Crypto being the means to get rich fast. The ads show that Crypto is easy and safe. However, it’s not the case.
This is what is concerning, and not everyone spends time researching or watching tutorial videos before investing their money. The sole idea behind the advertisement is to get more people to use the crypto exchange, but the false claims being made during the ad are wrong. Instead, one should research how the market reacts, how a particular cryptocurrency has performed in the past, and much more before one can start investing.