Coinbase Shamed in UK Over Exploitative Cost Of Living Campaign: Guardian

The Advertising Standards Authority (ASA) ruled on 28 Jan that the campaign trivialized the risks associated with digital currencies and exploited the financial anxieties of consumers.

Trading on desperation

The offending campaign featured posters across the London Underground and various social media platforms, highlighting the rising costs of basic goods. Slogans like "eggs now out of budget" and "home ownership out of reach" were used to frame cryptocurrency as a hedge against inflation. 

The ASA found that the advertisements failed to clarify that investments could go down as well as up, effectively treating high-risk speculation with the same lightness as a grocery shop.

In its ruling, the watchdog stated that the advertisements were socially irresponsible. By linking the purchase of Bitcoin or Ether to the ability to afford essentials, Coinbase crossed a line into predatory marketing. The industry has a long history of presenting itself as a "democratizing" force, yet it consistently targets the most vulnerable during periods of macroeconomic instability. This latest slap on the wrist serves as a reminder that while the tech might be new, the tactics are as old as the hills.

The Chancellor of crypto

The presence of George Osborne as a lead advisor to Coinbase adds a layer of irony that is difficult to ignore. 

The former Chancellor, who oversaw years of austerity in the UK, is now the face of a company trying to profit from the fallout of those very policies. Osborne joined the Coinbase global advisory council last year, presumably to provide a veneer of institutional respectability. Instead, he finds himself associated with a campaign that has been publicly shamed for its lack of integrity.

Coinbase has previously defended its actions by claiming the adverts were designed to "spark a conversation" about the current financial system. This is the standard "disruptor" defense used whenever a corporation is caught behaving badly. If the goal was to discuss the failings of traditional finance, there are ways to do so without encouraging retail investors to gamble with their rent money.

The UK government continues to talk up its ambitions to become a global crypto hub, but the regulators clearly have other ideas. While politicians like Osborne might be willing to lend their names to the cause, the ASA is showing that there are limits to how much "innovation" the public should be forced to swallow. 

As the cost of living continues to bite, the last thing people need is an invitation to lose what little they have left on a digital token.