When Bitcoin, one of the many digital coins that appeared years back, people used to talk about it with a lot of expectations and reservations, and many maintained their apprehension. The media of debate was mainly by email and print media. Once social media took over every online communication method that ever existed, people started to converse about cryptocurrencies through their social media account.
Although it sounds like a significant step forward, it was actually a way to spam one another in the name of Bitcoins and information related to it. Many people started talking about Bitcoins, the latest digital money through their social media accounts, and certain companies began to make ads related to cryptocurrencies. This digital money is yet to get legal status, and Facebook finds it quite offensive to their rules and regulations to post an ad pertaining to cryptocurrency on their social media platform.
The real reason behind banning crypto ads on Facebook
Trading Bitcoins and other cryptocurrencies with one another happens through a blockchain platform, which has not been confirmed as a legal digital money transaction method until now. Other than just discussing cryptocurrencies on social media, many people started to create ads representing Bitcoin sale, and it was actually found to be violating the ad campaign rules of Facebook, which is one among the giants in the world of social media. As these digital money transactions and businesses are not legalized and authorized in many parts of the world, Facebook decided not to endorse or let their users make use of their platform to create ads related to cryptocurrencies.
Who gets affected by this ban?
It will be a huge setback for many development teams and other cryptocurrency project operators who made use of social media like Facebook to reach their users. It will also affect the general public who used to use with their social media accounts such as Twitter, Facebook, and Reddit to discuss and track details regarding the recent growth of cryptocurrency. At present, one can search and read information related to cryptocurrency, but the possibility to reach the right people has become a hard reality for people who looked to Facebook in having some valuable information.
What made them take this broad approach to ad campaigns?
Facebook recently fired back against the deceptive and misleading ad practices that were said to be running on their platform, especially with the ICOs and cryptocurrencies being a major spam issue. In a recent blog post from Facebook, Rob Leathern says that the social media giant is at present trumpeting their new ad policy that shall be banning ads associated in spamming or with any other misleading promotional practices to their platform users.
With their updated regulations for the ICO’s, Facebook is trying to protect the users of their platform from getting spammed or cheated out of misleading promotions featured on their platform.
This new ad policy means that no advertiser – even the ones who intend to be operating a legal and legitimate business so far – shall not be allowed to promote any ads related to Bitcoin or other cryptocurrencies to their users.
Facebook’s blog post regarding their new ad policy
Recently James Altucher’s Facebook ad which appeared as ‘crypto genius’ went viral all over the web world and even the memes made for the ad campaign turned into spam. Although the memes were hilarious enough to watch, a majority of the people started to lose their trust in cryptocurrencies with such spamming ad posts created for no reason.
Ads that are found to be violating the new policy of the Facebook company shall be banned immediately from Facebook’s core app, and also in their other partnered networks like Instagram, where Facebook earlier let their users run an ad campaign on all their social handles at the same time. Rob Leathern also blogged that Facebook shall be revisiting this particular policy very soon after getting actual feedback from their platform users in the upcoming days.
Bitcoin price drop
Many social media users have widely appreciated this particular bold move from Facebook, yet, there is another side where Bitcoin faced a considerable decline concerning their value after the official announcement regarding the Facebook cryptocurrency ad block was seen all over the internet.
Some legitimate cryptocurrency bloggers said that it was a part of Facebook’s war against the new digital money, as they are in plans to create their digital coins shortly. They wanted to censor crypto so that people can get to know less about it and look forward to the ones which they might be launching by this year-end.
Following Facebook, it’s unclear if other social media giants like Twitter and Reddit shall be following up with such an ad ban or not. Recently Wences Casares, the head of a Bitcoin wallet startup named Xapo requested investors not to add more value in their ICOs, which is now found to be supporting Facebook’s decision to ban crypto ads that urged people to invest their entire savings as a token sale. Ripple and Ethereum founders even voiced out the same thing and warned the investors not to go beyond in terms of investment level as it might turn out to be a spammed one in the cryptocurrency industry.
As many countries are yet to legalize this new digital money, Facebook finds the ads related to cryptocurrency a false approach, where many companies created ads that guaranteed in fixed returns, which is not possible, especially in the world of cryptocurrency. As there is only a minimum level of Bitcoin, Ethereum, and other digital coins available, the value of them will depend on the demand and supply as well as the trust people shall repose on it before the bubble bursts.
This type of traffic gradually increases the value of a digital coin and people tend to invest and obtain it believing that the coin shall reach a great price value within a short period. Any crypto ads reflecting unrealistic claims and asking people to invest in it shall be considered a misleading business campaign and shall have no place on Facebook.