Bitcoin and cryptocurrency technology has taken 2017 by storm. With it increased the number of people interested in investing in digital currencies. However, things aren’t really looking good in the crypto market today.
After rumors circulating online that Twitter is looking to ban crypto-related advertisement, today is the day that it becomes reality. The micro-blogging platform is finally looking to ban advertisements promoting both cryptocurrencies and ICOs following the move of Google and Facebook to do the same thing. The ban will also affect exchanges as well as wallet services. However, there is an exemption as for companies that are listed on certain major stock markets.
This ban will not be applicable to cryptocurrency exchanges that are registered and licensed to operate by the Financial Services Agency.
According to Twitter’s spokesperson:
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency. Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
Two Week Rumor Becoming Reality
The ban was first reported by Sky News a week ago. The report suggested then that the ban would come into effect at some point around the next two weeks after Twitter publicly said that it was preventing crypto accounts from “engaging with others in a deceptive manner”. The problem with crypto-related activities within Twitterverse is that there is a considerable number of scammers around the platform. It involves hijacking verified Twitter accounts in order to trick users into investing in cryptos.
Twitter isn’t the only that is after control in their sponsored ads program. Both Google and Facebook have also announced that they are going to curb crypto-related advertising. Facebook already added binary options, initial coin offerings, as well as cryptocurrencies as part of its prohibited financial products and services this year.
How Did It Affect Cryptos?
As expected, Bitcoin price dropped following the announcement. When Facebook made the announcement on January 30, Bitcoin price fell by around $3500 for the next seven days. When Google announced recently that they are implementing ad-blocking on March 14, Bitcoin lost $1500 in a matter of a day.
And sure enough, Twitter’s announcement has coincided with a bearish trend. However, in comparison to the previous drops, this one is a minor one. Bitcoin fell below $8,000 but was able to recover shortly.
Protection Against Scams
Though cryptocurrencies have the technology that can help shape the modern financial world, scams are also rampant within the market. You have to deal with Ponzi schemes to hacks. And because of this, Twitter is taking the necessary steps in order to protect its users.
Regulations are also placed in order to protect investors. And so far, it prevented Bitcoin from getting even close to its near all-time high. Could this mean that Bitcoin hype is already over? Given the steps taken by Google, Facebook, and Twitter, does it mean that the crypto market still doesn’t have a good reputation after all given all the possible scams that go with it?