John Reed Stark, a former Chief of the SEC Office of Internet Enforcement has tagged crypto to be a \u201cmammoth Ponzi scheme\u201d about a Coinbase ad currently circulating on the internet.\u00a0<\/span><\/p>\n Software engineer Stephen Diehl recently reacted to a new Coinbase ad on the X app that preaches updating \u201cthe system.\u201d Despite the accolades the social media promotion got, Diehl received it with mixed feelings. The software engineer pointed out that the ad was rather a form of \u201cgaslighting.\u201d<\/span><\/p>\n <\/p>\n For context, Diehl emphasized the fact that the American cryptocurrency exchange is involved in the sales of some gambling products that prey on the financial illiteracy of its users.\u00a0<\/span><\/p>\n These products are usually disguised in \u201cphony financial populism\u201d which could well be categorized as a crypto Ponzi scheme, per a statement from Diehl. Considering this situation, Diehl perceives the Coinbase ad as the exchange promoting a crypto Ponzi scheme as a way to a better financial system.\u00a0<\/span><\/p>\n \u201cIt\u2019s completely absurd, twisted, and I dare say outright evil, to claim Ponzi schemes and gambling are building a \u201cbetter financial system\u201d,\u201d the software developer wrote on the X app.<\/span><\/p>\n <\/p>\n<\/blockquote>\n Stark, known for his criticisms<\/a> of crypto entities, shared the same sentiment with Diehl as it concerns the Coinbase ad. He called the advertisement \u201cdisturbing, unscrupulous, and shameless.\u201d\u00a0<\/span><\/p>\n The ex-SEC official went on to highlight the negative effect that such financial panacea cry-outs have had on the crypto ecosystem. The collapse of top crypto projects like Terra, Voyager Digital, FTX, Celsius Network, and BlockFi was referenced in the post.<\/span><\/p>\n <\/p>\n In the case of FTX, many celebrities and top brands were dragged into a lawsuit for promoting the exchange as well as other shady crypto projects recently, underscoring the sensitivity in crypto promotions.\u00a0<\/span><\/p>\n In like manner, popular TV personality Kim Kardashian was charged<\/a><\/span> by the United States SEC for promoting EthereumMax and she had to pay a fine of about $1.2 million.\u00a0<\/span><\/p>\n Discussions around crypto Ponzi schemes and other risks associated with crypto investments have made regulators all over the world more conscious.\u00a0<\/span><\/p>\n So far, many regulators have been putting measures in place to regulate crypto advertising. Spain\u2019s CNMV decided to enforce<\/a><\/span>\u00a0its crypto asset advertising regulation last month. The Financial Conduct Authority (FCA) in the UK has also implemented its crypto ads compliance guidelines<\/a><\/span>.<\/span><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n <\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <\/p><\/div>\nCoinbase Ads Draws Ponzi Scheme Comparison<\/strong><\/h2>\n
\n
Crypto Ad Regulation: a Global Affair<\/strong><\/h2>\n
![\"\"](\"https:\/\/secure.gravatar.com\/avatar\/733ca3c15c1fbb2629eeb51edb886efb?s=200&d=mm&r=g\")