Bitcoin Drops as Facebook Bans Cryptocurrency Advertising
Bitcoin’s price experienced a drop on Tuesday night following Facebook’s announcement that it would ban any adverts which promote cryptocurrencies. The ban will also include those promoting ICOs (initial coin offerings).
Facebook is banning all cryptocurrency- related ads, including those involving bitcoin, claiming that such ads are “frequently associated with misleading or deceptive promotional practices”.
Product management director Rob Leathern, posted on his blog that this decision isn’t final, as the rules will be revisited when Facebook has improved its mechanism of removing bad ads.
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs, and cryptocurrencies that are not currently operating in good faith. This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up” across Facebook, Instagram, and its off-platform Audience Network, said Leathern in his blog post. “We will revisit this policy and how we enforce it as our signals improve.”
“We’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,” read the post.
Ads that violate this new policy will be banned on Facebook’s core app, as well as other places where Facebook sells its ads, including Instagram and Audience Network.
The skyrocketing price of Bitcoin has led to many scams and the fluctuations of crypto market values have made a lot of people, especially newbie investors, lose their money.
Of course, this decision has generated two camps. On one side, the move has been welcomed by supporters of cryptocurrencies and who wish to see bitcoin and other digital coins, represented in a more legitimate way. On the other side, entrepreneurs and investors think that this is a form of censoring which will negatively affect crypto companies and related crypto products.
Facebook has two board of directors that are also important figures in crypto investing, Marc Andreessen and Peter Thiel. Their firms have been prominent crypto backers. Facebook Messenger boss, David Marcus, is also on Coinbase’s board of investors.
Bitcoin’s price fell below $10,000 after the policy was announced, signalling that this ban on crypto advertising will significantly impact the world of digital currencies.