In what may well turn out to be the most important statement of 2018, Facebook have announced that they will revise their blanket ban on cryptocurrency advertising, a policy they instigated in January. Within days, the crypto combined market cap value had fallen by $340 billion, with many experts seeing a direct correlation between the two events.
On Tuesday (June 26) social media giant Facebook announced that it is revising its blanket ban on all cryptocurrency advertising across its website. While it would seem that the result will be that crypto advertising – possibly with regulation – will now be allowed, some elements of the ban will remain. For example, all advertising relating to binary options and ICOs will still be banned.
On Wednesday Facebook Business announced:
“In the last few months, we’ve looked at the best way to refine this policy — to allow some ads while also working to ensure that they’re safe. So starting June 26, we’ll be updating our policy to allow ads that promote cryptocurrency and related content from pre-approved advertisers. But we’ll continue to prohibit ads that promote binary options and initial coin offerings.”
A Brutal Ban For Bitcoin Et Al
Facebook first announced their intention of such a ban in early January, and by the 30th it was a formality. It was a massive blow to the crypto industry, news of the ensuing ban had a major effect on the combined cryptocurrency market, which dropped by $340 billion that month.
After the crypto market boom of 2017, many crypto startup companies were trying to get in on the action. ICOs were rife, as were ICO scams, and Facebook claimed their decision to ban crypto advertising was a direct reaction against such scam ICOs. Interestingly, the announced blanket ban revision offers no respite for ICO advertising.
However, not everyone was convinced with Facebook’s reasoning for initiating such a harsh, all-encompassing ban. Soon after the ban began, rumors began to circulate that Mark Zuckerberg wanted to create a Facebook cryptocurrency. Then in May, Facebook announced it was putting together a crack-team dedicated to researching the blockchain, and headed by David Marcus. And yet despite such posturing, there are no signs of a Facebook cryptocurrency.
Will Google & Twitter Follow Suite?
Soon after Facebook banned crypto advertising across its social media platform, Google, and then Twitter announced similar bans. The result was devastating for the crypto market, which was trying to recover from Facebook’s January ban.
It will now be interesting to see if Google and Twitter once again follow Facebook’s lead and revise their decision to ban crypto advertising. If that were to happen, it will be fascinating to see how such an announcement will affect the crypto market. Many crypto watchers believe that without a shadow of a doubt, the biggest reason for 2018’s virtual market collapse has been the bans imposed by Facebook, Google and Twitter.
Even if Google and Twitter don’t follow suite, just having the freedom to advertise on Facebook again, and the amount of traffic such adverting will generate – should be a much-needed shot in the arm for the long-suffering crypto market in 2018.