One of the biggest news lately is that Twitter banned crypto advertising in their platform. Twitter followed the steps of Google and Facebook and for this reason, crypto price fell down. However, it isn’t just the cryptocurrencies that are affected. ICOs are also affected considering that they may have fewer strategies online on how to promote what they offer.
One of the reasons for the ban as Facebook announced in January is due to the crypto ads that are “frequently associated with misleading or deceptive practices”. And if you will look at the current landscape today, most trafficked websites have all banned cryptocurrency advertising.
A Good or a Bad Thing?
If you will ask some people in the crypto world, they would even consider this move as a good thing. The ban might actually work in their favor. And how so?
It is true that Google, Facebook, and other sites have a good reason to ban crypto advertising considering the number of scammers that give the crypto world a bad name. However, keep in mind that cryptocurrency regulations are still not yet final.
The Securities and Exchange Commission, for instance, has indicated that token sales are more likely considered securities that will need to be registered with the agency. So how exactly does the blanket ban by Facebook, Twitter, Google, and even by Mail Chimp be a good thing if this is the case? The ban will prevent advertising platforms in promoting potentially illegal investments.
If you will ask Jerry Brito, he said that “I do think that, simply, platforms like Facebook and Google ultimately want to be seen as good corporate citizens”. Brito is the executive director of Coin Center which is a non-profit research center that has focused its attention on policies that surround the crypto market. He added that “when there is an issue of investor protection that regulators in Congress have been vocal about, they are going to feel like they want to address that”.
As for the bad news, the blanket ban will also affect those startup ICOs that have legitimate intentions in promoting blockchain technology. Well-known ICOs now can’t use Google and Facebook which can be considered as a drawback.
Google’s Blockchain Tech
If you will dig deeper, isn’t it a bit ironic that Google is actually exploring blockchain technology? Also, there are plenty of highly reputable companies such as IBM and even the UN that are into the technology. Also, if you will look at Facebook, it has allowed different industries that have been known for their scams. You may see advertisements that offer diet pills on Facebook.
Paolo Taska who is an Italian economist and the executive director of University of College London’s Centre for Blockchain Technology mentioned that these centralized giants that control data will most likely not favor decentralized model showcased by blockchain technology. He also added that there will be scams in different industries. He even mentioned that cryptocurrency startups actually release a detailed white paper in order to explain their practices and clear the air with its potential investors. In fact, the white paper can even put ICOs under scrutiny.