Regarding Bans On ICO/Crypto Advertising
Google, Facebook and Twitter have currently placed bans on ICO and cryptocurrency advertisements, but it's important to make a distinction here: Bitcoin is NOT an ICO. Often getting grouped together under the blanket term "cryptocurrency", there are major differences between those in the space. Most importantly, Bitcoin does not rely on public funding, token sales or advertisements to exist. The proliferation of ICOs came on the back of the long-term success of Bitcoin and its blockchain tech. After Bitcoin's off-the-charts value increase, in late-2017, many companies attempted to cash in by introducing their own ICO tokens. These companies tended to make inflated claims of massive gains, disrupting the system, or fixing global problems with the help of investors like you to jump on board and buy up their token offerings. These ICOs were able to make such claims because they currently had no overseeing regulation restricting them or holding them accountable for their claims, and ICOs were a great way (similar to publicly-offered stocks) to raise money for the entity offering up the "coins". Because of this lack of regulation, and reports of fraud and scams, the SEC (U.S. Securities and Exchange Commission) set regulations and halts on ICOs, whose promises were deemed untenable. Earlier this year, it was also reported that 46% of last year's ICOs have already failed, and because of these figures, social media outlets have to decided to place a ban on advertisements and content related to them:
The value of Bitcoin and ICOs has unquestionably gone down since these statements were issued, and while there's correlation, there are many other causes as to why this is the case. While these restrictions may come across as a warning against anything in the cryptocurrency and ICO space, that is not the actual case. Similar restrictions were made in 2016, regarding payday loan companies. Google and Facebook decided to ban all payday loans (those with repayment due within 60 days or an APR of 36%+) in order to "... protect our users from deceptive or harmful financial products", according to Google's director of global product policy, David Graff. This does not ban all loan ads, just those with red flags as not being in the best interest of potential customers. These social media outlets know that by eliminating their ability to very quickly advertise and build up a base of investors, those ICOs with nothing to really offer will die out. Expanding on my point, Twitter CEO, Jack Dorsey, has been a vocal proponent of the mass-adoption of Bitcoin, recently making this statement:
Keep in mind that this statement was made AFTER Twitter's announcement to end ads for ICOs and cryptocurrency. The existence of most of these ICOs came as a result of capitalizing on the FOMO (Fear of Missing Out) for those not yet fully informed about successful cryptocurrencies like Bitcoin, Litecoin and Ethereum (a legitimate ICO), and social media outlets like Twitter, Google, and Facebook aim only to eliminate those preying on the naive. As we stated in a previous article, this is a good sign and will ultimately help to clear out the spam and make way for the adoption of a truly disruptive change that actually does aim to quell some of the world's problems related to fiat currency. Let's view these restrictions as shaking the diseased apples from the tree, to allow the tree to live long and be fruitful.