After Facebook announced this, Twitter is ready to follow its example. According to Fortune, the social network will ban ads for several kinds of cryptocurrency products and projects. The revised policy would go into effects in around two weeks and it’s expected to block ads for initial coin offerings, as well as token sales and cryptocurrency wallets. Even though it wasn’t confirmed, it is expected to see a ban on ads for cryptocurrency exchanges are well.
An official position wasn’t announced yet
Even though Twitter did not confirm this officially, yet, earlier this month CEO Jack Dorsey answered to cryptocurrency watcher Emin Gün Sirer inquire about the prevalence of cryptocurrency “scams” on the site, saying that they’re “on it”.
Obviously, this is a major reference to the fake accounts which invaded Twitter recently, but also the broad advertisements of cryptocurrency sales and projects. As mentioned above, both Facebook and Google have imposed such bans, after it was revealed that United States regulators like CFTC and SEC consider a lot of cryptocurrencies as investment offerings.
The regulators are carefully watching the marketing of investments, suggestion big problems for digital advertisers. Google and Facebook are currently using mainly automated systems to screen ads, so it’s relatively difficult to prevent misrepresentation.
Twitter, to become safer for potential investors
This definitely comes as great news for anybody looking forward to investing in cryptocurrencies, after the recent rise of Bitcoin and other coins. Almost half of the ICOs announced in 2017 collapsed within just a few months, with most of the founders simply disappearing with the money they managed to raise.
Besides this, there were a lot of Ponzi schemes, promising investors monthly returns of up to 40%, just like BitConncet did, collapsing shortly after.
Despite Twitter and YouTube being major channels for promoting cryptocurrency projects, these new restrictions will have a relatively limited impact, as much of the hype around them comes from ambassadors or early investors, as well as “pump and dump” accounts, who manipulate this highly volatile market.