Twitter Bans Cryptocurrency AdsMarch 27, 2018
Cryptocurrency-related ads are now blocked on Twitter. The ban started last Tuesday, March 26, 2018. Twitter is not the only social media platform that banned cryptocurrency ads. Reddit, Google and Facebook have already blocked such advertisements.
In order to protect the safety of the community, Twitter added a new policy for cryptocurrency-related ads. Under the new policy, all ads of Initial Coin Offerings and token sales will be banned globally. Twitter already started removing accounts that deliberately solicit cryptocurrency exchanges and impersonate popular figures such as Vitalik Buterin, Elon Musk and John McAfee.
Cryptocurrencies have become very popular due to the number of benefits it offers. For instance, Bitcoin can be designed to add or eliminate third party approvals or be completed at a fraction of the time and expenses needed to complete conventional asset transfers. There are usually no transaction charges for cryptocurrency exchanges as the miners are paid by the network. Since cryptocurrencies are decentralized, it is not handled by a single authority. However, cryptocurrencies also carry risks such as fraud.
The new policies implemented by Twitter aim to discourage any possibility of deception and fraud as people navigate Crypto Twitter, which Bitcoin evangelists use to promote the cryptocurrency. It is also used by some people to convince others to invest in new ICOs. Crypto Twitter is a source of rumors and news about cryptocurrency as well.
Twitter will start implementing the new policy over the next 30 days. All advertisers will be affected by the new policy. Token sales and ICOs will be blocked, but cryptocurrency wallets and exchanges will be limited to only public companies that are listed on major stock markets.
Another reason for the new policy is to prevent risks to Twitter itself. The increasing number of Initial Coin Offerings makes it impossible for anyone to know which cryptocurrencies and ICOs are genuine and which ones are frauds. ICO advertising might have been an important source of revenue for the company, but the consequences of deceitful activities are not worth the risk.
Bitcoin prices have already dropped earlier this year. It dropped 12% in late January after Facebook announced that it would ban all ads relating to cryptocurrency to prevent the spread of financial services and products that are associated with deceptive or misleading advertising practices. Google also updated its financial services policy in March, restricting advertising for cryptocurrencies and all related content. The new policy will start in June.
Bitcoin is not the only cryptocurrency that has suffered a hit this year. Ethereum has fallen 45%, Ripple is 38% lower, Litecoin is down 40% and Bitcoin Cash has dropped 29% since January.
Twitter, Google and Facebook are taking a stance against cryptocurrency ads, but research suggests that the ad bans of social media platforms may not have a large effect on token sites. According to web traffic tracker SimilarWeb, less than 1% of traffic on exchange websites comes from paid advertisements. What this new policy brings will be known in the following weeks or months.