Google Joins Facebook In Banning Cryptocurrency And All ICO Ads

The Cryptocurrency market was practically indomitable in 2017. It soared to a market cap of almost $613 billion by year’s end starting from a considerably small collective market cap with a value of $17.7 billion. This soaring represented an increase of more than 3,300%. The chances are high that such a profitable investment opportunity may never be seen from an asset class ever again in one year.

In 2018, hurdles have arisen for Cryptocurrencies. Various regulatory concerns out of China and South Korea earlier in the year resulted in a decline in the total virtual currency market cap. It reduced from the all-time high of $835 billion to around $276 billion at its trough. The market lost almost two-thirds of its value in just about a month’s time.

Facebook and Google Curb Cryptocurrency-related Ads

The challenges on the Cryptocurrency market have continued with the many increased regulations around the world. In the past six weeks, Google and Facebook announced that they would stop allowing initial coin offering (ICO) and Cryptocurrency ads over their platforms. At the end of January, Facebook announced that they would ban all Cryptocurrency and ICO ads.

In the Announcement, Facebook stated that they had come up with a new rule that extensively prohibits all the adverts that promote financial services and products that are often linked to dishonest or misleading marketing practices like initial coin offerings, binary options, and Cryptocurrency.

Since Facebook owns four of the most substantial top seven social media platforms that include WhatsApp, Instagram, Facebook Messenger, and Facebook, the ban was viewed as a significant blow to the Cryptocurrency industry.

Nevertheless, the latest blow for the crypto space came on March 14, when Alphabet subsidiary, Google, also stated that they would do away with all crypto-related ads. Furthermore, they announced that they would ban anything concerning crypto wallets, ICOs, and virtual currency trading advice before the end of June 2018.

Google’s director of sustainable ads also said that the company had seen enough consumer harm and potential harm for consumers, which resulted in the ban. Google wants to approach ICOs and the entire Cryptocurrency market with extreme caution since they do not know where the future is going with this industry. All the information about this ban is highlighted clearly in the company’s new Financial Services advertising policy.

The Effects of this Ban

Though the hard-line position by the two companies gets viewed as bad news in the Cryptocurrencies world, it is believed to be a blessing in disguise in the end. On one side, banning digital currency advertisements is justifiable since they are unregulated and can result in extensive financial losses to uninformed investors lured in by the flashy ads that promise significant returns quickly.

From the financial reports so far this year, it is evident that Cryptocurrencies can head lower. Also, most of the ICOs often fail to raise considerable amounts of cash or interest to become reliable long-term assets. The market relies majorly on new investors to assist in driving market caps even higher. Thus, the market is dominated by many retail investors, while the institutional investors stick to the sidelines.
The major loss of billions of impressions from Google and Facebook’s platforms may impact crypto valuations significantly by reducing the rate on new investments.

On the other hand, the bans show that Cryptocurrencies are rapidly becoming a more authenticated asset class. Oddly, increased regulations and bans can help in the formation of a stable foundation where the crypto-related assets can gain the trust of investors. Though most of the virtual currency investors do not like regulation since anonymity is the most attractive aspect of the Bitcoin currency, any additional rules can create a long-term spine for the Cryptocurrency movement.

Investors should cheep more bans and regulations since it would help validate this growing asset class. Additionally, it would eliminate all Blockchain projects and digital tokens that aim at fleecing the investors.

2 thoughts on “Google Joins Facebook In Banning Cryptocurrency And All ICO Ads

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