Regulators in the UK are standing by their decision regarding complaints raised by people who have labeled BItMex ad as misleading.
One of the essential fundamentals of any ad shown to the public is the ability for it to warn them of any eventualities that may accrue from any venture or activity promoted by the ad; this is true in both the gambling and drug industry. An advert promoting beer is required to state the adverse effects of using alcohol.
Back in June, BitMex placed an ad, intending to celebrate the tenth anniversary of crypto existence. The ad contained a graph that covered two pages and an arrow in the chart that depicted the growth of Bitcoin over ten years.
Some people did not take this lightly; especially those who have taken part in crypto trading and have lost a considerable amount of their assets; took the issue to the ads regulator in the UK.
The regulator in its part looked into the issue and later on published its findings.
Findings by the Regulator
The ad regulator was against Bitmex, and called the ad “misleading” in a published statement, and further added, “it failed to illustrate the risk of investment”.
The regulator, in the published statement, informed that the graph used to portray Bitcoin growth was logarithmic. Hence, it was unfounded to use equally spaced values on the y-axis, as this would represent a continuous increase in the amount of Bitcoin to a non-professional, but in truth, the graph only portrayed the increase in the value of bitcoin by magnitude.
The regulator went on to admit that log graphs such as the one used in the ad might relate to the growth of a variable, in this case, bitcoin. As portrayed, it would, however, require an expert to compute the actual growth of Bitcoin. Therefore, the graph was an unlikely contender to feed the gullible public news that Bitcoin is a sound investment.
The regulator lastly said that the public might get a false representation of reality by following this ad.
BitMex also came under fire for the choice of words it used to portray bitcoin, the entire text read:
“despite price volatility and how entirely bonkers the system seems, the bitcoin protocol appears robust, and although the road ahead will be challenging, there’s a reason to believe Bitcoin’s still got a chance at glory.”
The ad regulator says that the additional information was not so convincing to members of the public about the risks posed by cryptocurrency trading. Therefore, the exchange was denied permission ever to use the ad again. The regulator also went ahead to issue advice on proper ads and stated that the ads should comprehensively portray their message for both professionals and non-professionals.