The Ad Ban Might Be a Good Thing for the Cryptocurrency IndustryApril 9, 2018
Google, Facebook and Twitter have already banned cryptocurrency-related ads. However, researchers and entrepreneurs dedicated to blockchain technology say that the ban might be a good thing.
Advertising platforms have a good reason for wanting to ban ads for Initial Coin Offerings and cryptocurrencies. Cryptocurrency investment schemes and ICOs are unregulated and have attracted those who want to take advantage of unsuspecting investors. A lot of blockchain startups are legally building a business using the technology, but some only want to make quick money from the publicity that comes with it.
Reddit has banned ads relating to cryptocurrency since 2016. MailChimp and Snap soon followed Google after the platform announced a cryptocurrency clampdown in March 2018. The Securities and Exchange Commission has specified that a lot of token sales are most likely securities and must be registered with the SEC.
Advertising platforms’ ban on cryptocurrency ads shows their desire to protect themselves from the possibility of endorsing potentially unlawful investment opportunities. However, the ban across the biggest advertising platforms online doesn’t differentiate between outright frauds and promising startups. Even real ICOs cannot use Google or Facebook to promote their services this way.
The ban can feel unfair considering that Google is allegedly exploring blockchain technology. IBM, United Nations and other reputable organizations and companies are also investing in cryptocurrency. However, some blockchain startup founders actually welcome the ban. According to them, it helps remove the bad apples in the industry. Job.com co-owner Arran Stewart said that the only people who are going to be worried are those who have ill intentions. According to Stewart, he depends on word of mouth and private networks to promote his business. He said that these are sophisticated platforms, they understand the cryptocurrency market and they genuinely care about the best interests of their users.
BlockCypher CEO Catheryne Nicholson agrees. Nicholson thinks that the ad ban is a good thing at this point in time. There are a lot of scams today and these fraudulent activities can be difficult to detect. Individuals may know what to look for or ask plenty of questions or do their own research, but they can still be deceived. Giving a fake payment address or website is easy to do these days. Nicholson thinks that the ban on crypto ads will not have much effect on the technology’s future. Less scams and deceitful activities would be a good thing.
ConsenSys chief marketing officer Amanda Gutterman also sees scams as a serious concern in the blockchain industry. Gutterman said that the enthusiasm for the promising industry and high-quality projects with remarkable teams behind them caused some dishonest and bad actors. According to her, ConsenSys has been targeted by phishing scams so she understands the concerns of different social tools and platforms.
Genuine ICOs often raise funds from recognized investors instead of casual cryptocurrency supporters and mom-and-pop shops. Some platforms still allow blockchain companies to promote their business, but not their ICOs. Preventing crypto geniuses and illegal ICOs from promoting their services on social media platforms might actually benefit the industry in the long run.