A number of tech companies and especially social media giants are cracking the whip on cryptocurrency advertisements more specifically after increasing reports of advertisement frauds emerging out. As per the latest reports by Sky News, following Facebook and Google, Twitter will start banning all the advertisements linked with different kind of cryptocurrency projects or products.
The policy will go into effect tentatively within next two weeks and would block all sort of advertisements for token sales, initial coin offerings, cryptocurrency wallets and cryptocurrency exchanges. However, this news still remains unconfirmed at the moment as Sky News has not mentioned the source who has revealed this piece of information.
Well, the news of Twitter introducing a ban comes just in a week of Google’s similar announcement. Search giant Google clearly mentioned in its updated policy that the company is considering a ban on crypto ads starting this June 2018 due to increasing reports of fraudulent advertisements hiding behind Google’s AdWords banner. Google said that it is necessary for them to take this step in order to protect the interest of its consumers in the long run.
Earlier this year, the social media mogul ‘Facebook’ took a similar stand after company’s Product Management Director Rob Leathern explained this move in his blog post saying that they’ve “created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.”
Soon after the announcement by Google last week, the crypto markets witnessed a heavy correction and nearly $60 billion were wiped off from it market cap taking to a low of around $300 billion. In the last week, Bitcoin slipped below the $8000 levels, Ethereum below $500 level, Litecoin below $150 and other altcoins showing similar trends.
Although the ban of cryptocurrency advertisements by major media giants like Facebook and Google brings a huge negative sentiment to the market, it is actually expected to be a good and bullish sign for the market in the long run. Forbes in one of its recent articles mentions that in the long run major cryptocurrencies like Bitcoin, Ethereum and Ripple and other that are backed by strong fundamentals and expected to easily survive the tides.
Forbes says that the ban will weed out all the scam coins from the crypto markets thereby making it a better marketplace and in turn would instill more confidence within the investors for legitimate coins. Craig Cole of CryptoMaps.info says “While this isn’t the best news, it could be a good thing for the cryptocurrency. The ban will help solidify the market and weed out scam coins and illegitimate actors looking to get rich quick, providing stability. This ban doesn’t mean that cryptocurrency is going away. I believe it will ultimately strengthen it.”
As the interest towards scam coins starts to diminish, investors will thus shift their investments towards the legitimate ones taking the crypto markets up. However, it would be too early to claim anything like that right now especially in the highly correcting crypto market, and hence investors should invest cautiously.