Advertisements for several kinds of cryptocurrency products and projects will be banned by Twitter. As per Sky News, the policy would go into full effect in two weeks. It would largely block ads for cryptocurrency wallets, initial coin offerings and token sales. Also, various other cryptocurrency exchanges would be banned.
When cryptocurrency watcher Emin Gün Sirer revealed that the site had lots of cryptocurrency “scams”, it prompted Twitter CEO Jack Dorsey wrote that the company was “on it” regarding the issue of widespread ban of such scams and ads.
Sirer was basically concerned with reference to fake bot accounts but advertisements of cryptocurrency sales and projects regard Twitter as a hotspot for covering a broad range of potential customers. As increasingly U.S. financial regulators such as the CFTC and SEC regard many cryptocurrencies as investment offerings, Facebook and Google have imposed similar bans. As regulators closely monitor the marketing of investments, suggesting potential headaches for digital advertiers, however, since automated systems to screen ads are primarily used by Google and Facebook, it is very difficult to prevent misrepresentation.
In the wake of 2017’s surge of interest in crypto-assets such as Bitcoin, new cryptocurrencies are often scams, this picture has become increasingly clear. Similar to initial stock sales in startups, nearly half of 2017’s ICO’s have already failed within months of their inception. Many supposed founders simply disappeared with the money they raised.
A number of elaborate offerings appear to have been Madoff-like Ponzi schemes. BitConnect, being one of them, became a laughing stock when it promised investors a 40% monthly return and the aftermath being it collapsing dramtically in January. The major channels for peddling such projects have been Social media platforms like Twitter and Google’s YouTube video platform. But, the impact of advertising restrictions alone will likely be limited since individual ambassadors or early investors, or “pump and dump” accounts who collectively manipulate the highly volatile market stalk the internet more often and are greater in number.