Changpeng Zhao says crypto demand and consumer approval come from “word of mouth” marketing rather than Ad marketing.
Changpeng Zhao, the CEO of Binance, also known as “CZ “, said the increase in restrictions on crypto advertising would not affect crypto demand.
In an interview with CNBC, CZ stressed that physical cryptocurrencies advertisments and cryptocurrencies related ads, in general, have no significant impact on consumer growth and have become more common over the past few years. He said most of the crypto adoption comes from “word of mouth” marketing.
He said primary advertising services such as Google and Facebook had not allowed crypto ads for a long time. Therefore, it is clear that advertising does not play an important role in crypto adoption or demand. He further said that the series of regulatory breakdowns in crypto ads was only showing growth in Crypto demands.
“Since the vast majority of crypto users come from “word of mouth” promotions, it is unlikely that cryptocurrency advertisements will have a significant impact on clamp demand.”
Singapore has recently issued new guidelines for crypto companies banning crypto advertising in public places after which the CEO’s comments came in the wake of sanctions and actions taken by various countries over the past few weeks. The Singapore Monetary Authority has further banned crypto service providers from opening crypto ATMs. Following the ruling, several crypto ATMs across the country were closed.
The United Kingdom Advertising Watchdog also took strong action against misleading crypto ads by banning two ads from the popular crypto trading platform Crypto.com. While on the other hand, the Spanish government is also looking to introduce new restrictions on crypto advertising.
Regulators have also shared their concerns about the misleading content of crypto advertising, alleging that many crypto companies are reducing the risks associated with crypto investments and increasing huge returns. Another major obstacle is clarity on crypto regulations in many countries, which makes crypto advertising an even bigger problem for regulators to oversee and control.