Crypto ads are in the spotlight… and investigators are turning up the heat. The Federal Trade Commission's reportedly looking into numerous crypto companies in connection with potentially deceptive or misleading ads. Crypto firms found violating advertising laws could face large fines and be forced to refund customers. There's a lot for the FTC to sift through: crypto brands have shelled out $223M+ on US ads so far this year alone.
Fortune favors the warm… Big spending was the norm before crypto winter kicked off in May. Late last year, Crypto.com said it would pony up $100M for a celeb-infused campaign (picture: Matt Damon insisting "fortune favours the brave"). It also reportedly shelled out $700M on its LA Lakers stadium-naming rights, while FTX splurged for Miami. Meanwhile, Coinbase spent $14M on a single Super Bowl ad. Now:
Big spending doesn't negate big risk… for investors, crypto firms, or celeb promoters. Ad blitzes — like the $60M FTX spent on TV commercials — suggest a biz has cash aplenty and is here to stay, but brand image doesn't always = brand reality. As the FTC moves forward with its investigation, and dozens of investors file claims in bankruptcy court, expect the (more than) once bitten crypto world to be twice as skeptical about future ad splurges.