The UK Advertising Standards Authority (ASA) today issued a ruling against a poster for Floki Inu, a cryptocurrency.

The poster was seen in November 2021 across the London Underground. The ad had an image of a cartoon dog wearing a Viking helmet. Text stated “MISSED DOGE. GET FLOKI”. Smaller text at the bottom of the ad said, “Your investment may go down as well as up in value. Crypto currency is not regulated in the UK”.

The ASA challenged whether the ad was irresponsible because:

• the use of an image of a cartoon dog wearing a Viking helmet and the claim “Missed Doge. Get Floki”, exploited consumers’ fears of missing out and trivialised investment in cryptocurrency; and

• it took advantage of consumers’ inexperience or credulity.

ASA acknowledged that the image of a cartoon dog wearing a Viking helmet was Floki Inu’s corporate logo and appreciated that some cryptocurrencies had their origins in humour and memes. The regulator considered that such imagery in and of itself would not necessarily trivialise investments.

Nevertheless, in the context of an ad that was promoting cryptocurrency, especially one that was presented specifically to play on consumer’s concerns of not missing out on the next cryptocurrency to sharply appreciate in value, ASA considered that the use of cartoon imagery gave the impression that purchasing cryptocurrency was a light-hearted and trivial matter. As such, it distracted consumers from the seriousness of an investment which was volatile and unregulated.

For those reasons, ASA concluded that the ad irresponsibly exploited consumer’s fear of missing out and trivialised investment in cryptocurrency.

Also, the Authority found that the general public were unlikely to be aware that CGT had to be paid on profits in excess of the annual CGT allowance from investing in cryptocurrency, in the same way they would for more traditional investments. In addition, while Floki Inu’s website may have included further information and warnings directing consumers to abide by the laws of their country of residence, the ad itself did not contain any information that CGT could be payable on profits from investing in cryptocurrency.

For those reasons ASA considered that the ad took advantage of consumers’ inexperience or credulity by not making clear that CGT could be payable on profits from investing. The regulator therefore concluded the ad was irresponsible and breached the Code.

The ad must not appear again in the form complained about. ASA told Floki Ltd t/a Floki Inu to ensure that they did not irresponsibly exploit consumer’s fear of missing out and trivialise investment in cryptocurrency. ASA also told them to ensure that they did not irresponsibly take advantage of consumers’ lack of experience or credulity by not making clear CGT could be due on cryptocurrency profits.