Coinbase Ad Accused of Promoting a Crypto Ponzi Scheme
Software engineer Stephen Diehl has criticized a new Coinbase ad that claims to be updating the financial system. Diehl argues that Coinbase is involved in selling gambling products that exploit the financial ignorance of its users. He considers these products to be a form of crypto Ponzi scheme disguised as “phony financial populism.” Diehl believes that the Coinbase ad is promoting this Ponzi scheme as a solution for a better financial system, which he finds absurd and unethical.
“It’s completely absurd, twisted, and I dare say outright evil, to claim Ponzi schemes and gambling are building a ‘better financial system’,” wrote Diehl.
Former SEC official John Reed Stark shares Diehl’s concerns about the Coinbase ad. He describes it as “disturbing, unscrupulous, and shameless.” Stark also highlights the negative impact that such promotions have on the crypto ecosystem, citing the collapses of various crypto projects.
Global Regulation of Crypto Ads
The sensitivity surrounding crypto promotions has led to increased regulatory efforts worldwide. In the case of FTX, celebrities and brands faced legal action for promoting the exchange and other questionable projects. TV personality Kim Kardashian was fined $1.2 million by the SEC for promoting EthereumMax.
Regulators around the world are taking steps to regulate crypto advertising. Spain’s CNMV recently enforced its crypto asset advertising regulation, while the UK’s FCA has implemented its own guidelines for crypto ads compliance.
Hot Take: Coinbase Ad Accused of Promoting Crypto Ponzi Scheme
A recent Coinbase ad has drawn criticism for allegedly promoting a crypto Ponzi scheme disguised as an update to the financial system. Software engineer Stephen Diehl argues that the ad is a form of “gaslighting” and highlights Coinbase’s involvement in selling gambling products that exploit users’ financial illiteracy. Diehl’s concerns were echoed by former SEC official John Reed Stark, who described the ad as “disturbing, unscrupulous, and shameless.” This controversy underscores the need for global regulation of crypto advertising, as regulators worldwide aim to protect investors from potential scams and risks associated with crypto investments.
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