Twitter is banning cryptocurrency-related ads on Tuesday, following the Reddit move in 2016 and joining advertising giants Google and Facebook to protect the investor from media hype of potential fraud or large investor losses.
Twitter, a social networking website and a huge cryptocurrency advertisement platform states that it will step ahead for a global ban on promotion for ICOs- a crowdfunding mechanism used to raise fund by creating digital currencies. Additionally, it will only permit advertising form cryptocurrency exchanges and active cryptocurrency wallet services that are publicly viewed on “certain major stock markets.”
This step is another puff after the Google and Facebook ban on cryptocurrencies ads to the growing infrastructure that supports digital currency trading and issuance.
The Twitter spokesperson said,
“We are committing 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 prohibiting globally.”
Possibilities of a ban on crypto-related ads were reported last week after it appeared that the platform has been used as a tool for online cryptocurrency scams. This will greatly prevent the fraudsters form creating fake profiles to advertise bogus ICOs or encouraging pump and dump schemes.
Hence, Twitter is already taking precautionary measures to prevent crypto-related accounts from “engaging with others in a deceptive manner.”
Zennon Kaoron, director of financial consultancy Kapronasia states that,
“With the increasing number of ICOs coming to market, it is an impossible task for anyone, much less platforms like Twitter or Facebook, to keep on top of which ICOs and cryptocurrencies are genuine versus frauds… Although certainly ICO advertising must have been a significant source of revenue for Twitter, the repercussions of fraudulent activities just weren’t worth the risk.”
Twitter and Google are implementing a huge stance against the paid advertisement of cryptocurrencies. Several researchers suggest that ad ban on social media platforms may not cause much disturbance to the cryptocurrency
SimilarWeb reports that a web traffic tracker displayed less than 1 percent of traffic on exchange websites drive paid ads. Most of the crypto exchanges websites drive their traffic from coinmartketcap.com- which tracks market capitalization numbers, not from paid ads.
Recent Support By Jack Dorsey
Earlier in the month of February 2018, Jack Dorsey, CEO of Twitter endorse cryptocurrency. Recently, he also quoted on Bitcoin potential saying it will surpass the US dollar within a 10 year.
“The world ultimately will have a single currency; the internet will have a single currency. I personally believe that it will be bitcoin.”
Unfortunately, today’s ban on crypto-related advert will be the great factor for the legitimate cryptocurrency businesses.