The entire crypto market grew rapidly last year. In 2017, we’ve seen the value of Bitcoin skyrocket from $1,000 to near $20,000. And for this reason, there were many blockchain and crypto-related projects that appeared over the last 12 months or so. One of the things that made initial coin offerings (ICO) popular is because of social media. Many of these ICOs were able to gather funds by making use of popular social media platforms from Twitter to Facebook and even Reddit.
A few months ago, Google along with other social media giants have banned crypto ads. However, it seems that these companies are now having a change of heart. According to Scott Spence in March when the internet giant banned crypto ads, “”We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution”.
But a lot of things have changed since the time when Google released its “trust and safety” ads report. One of the primary reasons for banning crypto related ads then was the clear lack of regulations in the niche.
What Made Them Change Their Mind?
A new policy that starts in October will allow crypto exchanges to buy ads in the US and in Japan. Unfortunately, despite the new policy that starts in October, ICOs, wallets and trading advice are still not going to be allowed.
The main reason why Google decided to ban crypto ads in the first place is the fact that it has been filled with scams and regulatory struggles. In fact, according to one study, one in every five ICOs can be a potential scam.
Before Google decided to relax its ban on cryptocurrencies, Facebook has already made the move. Facebook started to allow preapproved cryto advertisers in June.
Alphabet, Google’s parent company, has generated 86% of its total income from advertising. In the first half of 2018 alone, the company was already able to generate $54 billion in ad revenue. Considering that this is their lifeblood, does it mean that confidence in the market is slowly going back?
There are a number of regulatory developments in the market today. In fact, the SEC has now considered Bitcoin and Ethereum as commodities. In addition to this, there is the possibility of having a Bitcoin ETF. Despite concerns of price manipulation, SEC Commissioner Hester Peirce is already backing the crypto industry and even defending them in her letter of dissent after the rejection of some Bitcoin ETF applications. And though the SEC has delayed its decision on the CBOE backed Bitcoin ETF application, there is a probability that we are going to see a Bitcoin ETF by next year.
Despite the fact that Bitcoin is still quite far from its all-time high, there are already a number of institutional investors at play that are looking to invest in the market. There are already developments in the niche that may signal that we are already approaching regulatory clarity within the niche. Mike Novogratz even believe that Bitcoin has already bottomed out.