Facebook, Google, Twitter: Why Social Networks and Ad Platforms No Longer Tolerate Cryptocurrency?

In the first quarter of 2018 many social networks and search engines nearly with one accord announced they would ban ads related to cryptocurrency, ICO, wallets, digital currency services and other.

Google plans to enforce that ban starting June, 2018. The company has changed its ad policy and stated the necessity of such actions in their annual safety and security ads report. Scott Spencer, Google`s director of sustainable ads, told CNBC that the company doesn’t have a crystal ball to know where the future is going to go with cryptocurrencies, but they have seen enough consumer harm to approach that issue with extreme caution.

In 2017 the company had to ban more than 3 billion ads due to the breach of Google advertising rules, whereas in 2016 it was only 1.7 billion. Interestingly, the parent company Alphabet that owns Google corporation makes more than 80 percent of its total revenue from advertising, so obviously strict ad rules and safe ecosystem is very important.

Facebook has not stayed away from crypto-ban. The company claimed digital currencies are “financial products frequently associated with misleading or deceptive promotional practices”. One of Facebook’s ad tech directors Rob Leathern wrote that these approach is not final and can be reconsidered depending on how the situation will be changing. Interestingly, at least to investors at Facebook board of directors – Marc Andreessen and Peter Thiel – are known to be quite active cryptocurrency backers.

Actually, there are not only crypto-related things facing these restrictions. Binary options ads have also been banned. A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all, depending on a particular performance of parties.

Nowadays Google and Facebook are one of the largest online advertising platforms, so the decision to ban all crypto-related ads has already influenced the cryptocurrency industry and will continue to do so. The digital currency market has been facing recession and these news are likely to cause even more harm to many projects. On the other side of the barricade Google will probably miss some profit too, however, the company has not reported on that issue yet.

Twitter also joined that anti-crypto march. The company announced the ban of all ICO and token sale-related advertising and accounts. The same measures were introduced by media-giant Snap Inc. that operates a popular multimedia messaging social network SnapChat.  

So, these global attack on digital currencies aims to safe users from untrustworthy, scam and fraud projects, that have really infected the market and use social networks resources to spread their advertising. The ban will certainly become another serious threat to the cryptocurrency market that has already been doing not very well. However, this policy may also eradicate crypto-fraud and as follows, make the cryptocurrency market more reliable and trustworthy, attracting even more people to really deserving projects.

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