In an effort to garner attention for Floki Inu, the cryptocurrency named in homage to Elon Musk’s canine companion, advertisements have flooded the network of London’s transportation. The campaign carries the striking message “Missed Doge? Get Floki,” and it’s showcased throughout the city’s subway, trains, and buses, targeting commuters as potential investors.
The promotional push is financed through a tax on Floki Inu’s transactions, a practice common among these themed digital currencies. Meanwhile, the meme coin Shibu Inu has soared, marking an impressive 165% increase in value, peaking at a market cap of $28 billion. With SHIB’s value hovering around USD 0.00005685, it has experienced a rise of 29% in a single day and 102% over the past week.
The advertising initiative, according to Floki Inu’s marketing strategist, seeks to elevate the coin in the eyes of consumers, sparking confidence and warding off the specter of fraud that often plagues this market. “These ads are just the beginning of an aggressive campaign targeting the London pubic transport scene,” he declared.
Further plans for Floki Inu’s promotional expansion include billboards in Los Angeles, with eyes also set on markets in Japan, China, and Russia.
The creators of Floki Inu explain that the coin was sparked by #DogeFather Elon Musk’s Shiba Inu, and they are zealously developing three major utility projects: Valhalla, an NFT gaming metaverse; FlokiPlaces, a market for NFTs and merchandise; and Floki Inuversity, an educational content platform.
Hayley Brady, head of media and digital at Herbert Smith Freehills, expressed concerns to the Financial Times, suggesting that the bright, emoji-laden crypto ads on public transportation may entice an unconventional investor audience, which could prompt regulatory scrutiny.
The fundraising mechanism behind Floki Inu includes an 8% tax on transactions, split equally between the marketing wallet and the coin’s holders: 4% is channeled into the wallet meant for promotional activities, while the remainder benefits the holders directly. The sum of assets within the coin’s promotional wallets surged to nearly $3.5 million at its peak in September, as per Etherscan.
The funds from the dedicated marketing wallet finance not only the advertisements but also influencer partnerships and the overarching development of the Floki ecosystem, as outlined on the coin’s official site. Their marketing campaign is poised to reach Los Angeles billboards and expand into major international markets.
Direct marketing tactics of this sort are anticipated to catch the attention of regulatory bodies. In the UK, the Financial Conduct Authority (FCA) is keen on reigning in such crypto promotions, while in the US, Securities and Exchange Commission (SEC) chair Gary Gensler indicates a need for more authoritative power to shield investors from potential investment traps.
Since the end of August, the market value of the coin has skyrocketed by 1,600%, reflecting its burgeoning popularity, as reported by Coinbase.
While Transport for London (TFL) maintains that vetting advertisements is beyond their responsibility, the UK’s Advertising Standards Authority is the principle overseer for most ads. Regulatory authorities, including the FCA, hold sway over investment advertising, but cryptos sit in a gray area given their non-regulation status. Consequently, current advertising statutes that apply to initial public offerings don’t cover these novel crypto ventures.
FCA chair Charles Randell has indicated that there’s an urgent need to establish regulations over promotional activities that bait uninformed investors into high-risk crypto investments, which are prone to extreme volatility. In response to the growing concern, the FCA emphasized that it is formulating applicable regulations pending governmental approval, while the ASA has vowed to crack down on deceptive crypto advertising.
