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In traditional finance (TradFi), publicly traded companies must follow clear rules about what they can say, when they can say it, and how they say it. If representatives encourage misleading headlines, inflated claims, and exaggerated outlooks, it can result in serious consequences. 

Marketing materials are expected to be factual, balanced, and grounded in what regulators call “materiality,” meaning the information must have a real impact on business value and must not be a “misrepresentation,” which covers both an untrue statement of material fact and an omission to state a material fact that is required or necessary to make a statement not misleading in the circumstances in which it was made.

In crypto, not every platform or project follows the same rigor. That’s why the Canadian Securities Administrators (CSA) has been proactive, recently issuing guidance warning companies against presenting routine acquisitions or minor developments as transformational. These types of announcements may not violate securities laws directly, but they could influence behavior without providing meaningful information, which raises concerns.

What Are the Signs of Crypto Hype?

To help navigate the crypto news landscape, here are 5 key indicators to watch for when “news” starts to feel more like spin.

1. Are You Seeing Announcements Without Substance?

In crypto, it is common to see teasers on social platforms. Phrases like “big news coming” or “major update soon” can trigger excitement, but often lack follow-through. These are sometimes referred to as “announcements of announcements.”

What to ask yourself:

- Is there a timeline or clear deliverable?
- Has the team built trust by delivering in the past?

2. Is the Acquisition Actually Transformational?

The CSA recently cautioned companies about framing minor business acquisitions in a way that misleads investors. In the words of the CSA:

“We have seen valuations referenced in news releases or continuous disclosure documents that are often based on unreasonable or unsupportable assumptions, leading to an inflated price of the acquisition of a business or asset and therefore potentially misleading disclosure.  — CSA Staff Notice 51-366

In crypto, a company might announce a new partnership, technology license, or business acquisition that appears important. But without measurable impact, it may not actually change the fundamentals.

Investor takeaway:
Only significant changes should prompt announcements. When the real impact is uncertain, waiting for clarification is a responsible approach.

3. Is That “News” Just a Republished Press Release?

Some crypto teams publish their own announcements, then share them in ways that make them look like independent news stories. The language often suggests journalistic reporting, even though the content was created in-house.

How to check:

• Click through to see if the article is marked “sponsored” or “press release”
• Look for bylines and the publishing source
• Verify whether a third-party outlet actually reported the story

4. Does the Partnership Have Real Impact?

Substantial partnerships often result in shared tools, new user pathways, or embedded features. Some announcements, however, promote “alliances” that sound impressive but don’t lead to functional change.

What to consider:

- Does the partnership create value for users?
- Is there evidence of technical collaboration or new features?

5. Are Paid Influencers Disclosing Sponsorships?

In traditional finance, firms must disclose when a third party is compensated to promote an investment opportunity. The same principle should apply in crypto, though the space has fewer consistent rules.

Some projects pay influencers or media accounts to post glowing reviews without clear disclosure. If several creators use identical language at the same time, it may be a sign of a coordinated promotion.

Protect yourself by asking:

- Is this a personal opinion or a sponsored post?
- Has compensation been clearly disclosed?

What Are the Marketing Standards in TradFi vs Crypto?

In Canada’s regulated environment, marketing must be clear, fair, and not misleading. Companies must share material updates in a way that treats all investors fairly. Suggesting guaranteed outcomes or exaggerating claims goes against these standards.

In crypto, while some issuers are working toward higher transparency, others may still use marketing tactics that fall short. That is why recent CSA guidance is so important. It helps raise the bar for how announcements are framed and how companies communicate with the public.

What Should You Ask Before Reacting to a Headline?

As a retail investor, your best tool is curiosity, not just about the projects you follow, but about how information is presented. Before reacting to a headline, announcement, or post, take a step back and ask:

- Is this news material, or just momentum marketing?
- Does it signal real growth, or is it a routine business update?
- Is the disclosure clear, measured, and aligned with regulatory expectations?

In traditional finance, promotional statements must be accurate, balanced, and based on material facts. Crypto is moving toward that same standard. The CSA’s latest guidance is a reminder that how something is announced can be just as important as what is announced.

We believe responsible communication helps support smarter investing, and smarter investing starts with asking the right questions. Before you react to the next big headline, check out . It’s a quick way to assess what matters and what’s just noise.

^{This article is for informational purposes only and does not constitute investment, financial, or legal advice. Cryptocurrencies and blockchain-based assets are highly speculative, subject to significant risks including price volatility, regulatory uncertainty, and potential total loss of investment. Crypto assets are not insured by the Canada Deposit Insurance Corporation (CDIC). Cryptocurrencies and stablecoins may be considered securities or derivatives under Canadian law, subject to CSA and OSC oversight. Consult a qualified financial or legal professional before making investment decisions. No securities regulatory authority has expressed an opinion about any of the crypto assets made available on the �����о���’s platform, including any opinion that a crypto asset is not a security and/or derivative.}