Visitors to London’s Underground and overground stations are greeted by stark billboards: “HOME OWNERSHIP OUT OF REACH” emblazoned in large letters. Beneath this declaration sits the logo of Coinbase, a leading global cryptocurrency exchange.
The underlying message is clear. For the millions struggling with high rental costs and unable to save for a down payment, the advertisement subtly suggests investing in cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, or the numerous digital assets offered on the Coinbase platform.
This message comes across as highly irresponsible. The difficulty of affording a home in today’s market is a genuine problem. The fact that we’re not building enough homes is a failure. However, to imply, even subtly, that the solution is to gamble on highly unstable digital tokens with no established value is a reckless act of self-promotion.
This advertising is part of Coinbase’s broader strategy to portray the UK’s financial system as deeply flawed, suggesting that investing in their products is the only route to financial security. Their recent video ads could be interpreted as a clever commentary on the struggles within the UK. The fact that Coinbase, a $79 billion U.S. corporation with $2.6 billion in annual profits, is the entity behind these ads changes the perspective significantly.
Just because many people face financial hardship doesn’t justify potentially worsening their situation by investing their limited savings in speculative assets like, for example, the Trump-themed meme coins – available on Coinbase for £6.53 each. This promotion brings to mind the crypto commercials of years past, starring Matt Damon, which compared cryptocurrency investment to space exploration and invoked fortune favoring the brave.
For those who view the cryptocurrency market as a dangerous bubble, destined to collapse (this is just one perspective), the notion of saving for a home deposit through crypto investments is absurd.
The Financial Conduct Authority (FCA), which rightfully warns crypto investors about the risk of losing their entire investment, has reviewed Coinbase’s recent advertisements and concluded that no direct regulatory action is warranted. Because the ads don’t explicitly encourage investment, no risk warnings are legally required. However, Coinbase’s effort to normalize crypto investments as a viable strategy for prospective homeowners is a step too far and borders on the absurd.
Patrick Hosking is financial editor