Crypto.com price plunges 20% in a week as UK advertising regulator bans two ads
- Crypto.com price has posted 4% losses over the past 24 hours and over 20% in a week amidst news of ban.
- UK’s Advertising Standards Authority has banned two ads by Crypto.com and deemed them misleading and irresponsible.
- Analysts predict further downside in Crypto.com price as the token forms lower lows.
Crypto.com’s native token CRO has suffered a drop in price over the past week. Crypto.com price has posted losses for four consecutive weeks. Two of the exchange’s advertisements were banned by the UK’s advertising authority.
Crypto.com price plunged in response to ad ban
The UK’s advertising regulator, the Advertising Standards Authority (ASA), has banned two of Crypto.com’s ads, labeling them misleading and irresponsible. The regulator expressed concerns that Crypto.com encouraged users to purchase cryptocurrency using a credit card.
Purchases made using a credit card would incur a higher interest rate and other fees, therefore encouraging investors to take high risk. The regulator was of the opinion that the exchange’s ads could take advantage of investors’ inexperience and credulity.
The regulator has criticized exchanges that take advantage of investors and fail to list involved risks on advertisements for their products and services.
Crypto analysts at the YouTube channel Business with Brian believe that Crypto.com price could continue its downtrend. Crypto.com price has posted losses consistently for the past 30 days. Analysts note that a trend reversal is likely to occur if we confirm the current price of $0.45 as a low.
Crypto.com price could bounce back from $0.45 if it is considered a low. However, the token’s price is likely to continue its trend.
Despite the drop in Crypto.com price, on-chain and off-chain data on the Cronos blockchain reveals that a majority of token holders are currently profitable.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
