A video was posted on the short video app Moj in the Malayalam language by a creator named @annsindhu. He describes that money is everything in the world and that money can get you anything you want. So all his fans need to make money, which will help them get more money. How? He advertised CoinDCX to buy different crypto. He was endorsing that it is safe and secure. Asked the followers to use his code MOJ100 and get Bitcoin worth Rs 100, and it has been there since the last week of November.
Many influencer-based paid collaborations have emerged since the previous week of November and increased at the start of December by CoinDCX. CoinDCX is India’s first cryptocurrency unicorn, co-founded by Sumit Gupta and Neeraj Khandelwal.
Gupta is head of industry and one of the Blockchain and Crypto Assets Council (BACC). The Council is an extension of the Internet and Mobile Association of India (IMMAI). As such, he attended the parliamentary committee meeting the previous month.
It happened after the Government stated that crypto exchanges should not mislead users. The parliamentary panel meeting was held on November 13. During this meeting, the Government commented that it strongly feels that cryptocurrency exchange and companies need to stop as they are not transparent.
A Parliamentary Committee meeting on November 15 concluded that the number of advertisements should be lowered or put out in a very precocious way. A video was posted by a Bollywood actress Disha Patani promoting the platform CoinDCX over Instagram. Karthik Srinivasan commented that it was irresponsible. He is the communication strategy consultant at CoinDCX.
Srinivasan commented that the video was posted on November 30, and it was very irresponsible. Only two weeks ago, the crypto industry decided to pause advertising.
The company is no more accepting any queries via WhatsApp messages and email.
Acquiring new users
Kashif Raza, the founder of Crypto-education platform Bitinning, commented that these celebrity-led and influencer adverts are primarily intended to attract new users to the app who are unfamiliar with the crypto market. However, once new customers are onboarded, these exchanges should make it mandatory for them to learn about Cryptocurrency and how the crypto market functions.
Raza added that all the exchanges are very competitive while being immensely funded. All of these factors put pressure to gain new users at a staggering pace, making marketing a very integral part. He added that the exchanges need a standard advertising practice, but it hasn’t been given to them.
Yes, there are paid partnerships, but no one has considered advertising going on Youtube and Telegram to get more downloads. Certainly speaking, no one has the answer on how this content can be pulled off. We can see an example of Earning Locker on Youtube and Telegram channel that advises on unlocking new coupon codes and earning Cryptocurrency as a reward on various exchanges. The videos on youtube have millions of views and more than 12,000 subscribers on Telegram.
We have seen channels on Telegram that have more than 90,000 subscribers.
Raza describes the unchecked content as scary. He added that creating content is super easy in today’s era as crypto-content requirements are growing every day. The creators are just lambs that follow the horde, thus catching attention. The people following these risky influencers are risking their investment.
He is waiting for the regulations to get in place, thus raising the awareness and education around crypto-related topics, which will result in a drop in such content.