Are you seeking information on cryptocurrencies so you can make an informed investment decision?
Well, you are going to have to do it without Facebook. This is after Facebook banned any advertisement on cryptocurrencies, initial coin offerings (ICOs) or binary options from their platform. The surging prices of cryptocurrencies have made them very popular, but Facebook feels that most of the ads being displayed are misleading and deceptive. This is a huge blow for many startups which have utilized the global social media platform to target investors for their ICOs and which will now have to result to other forms of advertising.
The Broader Plan
This ban was explained by Rob Leathern, Facebook’s product management director, via a blog post. It’s part of a broader plan by Facebook to rid its platform of ads that mislead their users. The ads being targeted are those that promote financial services and products which are associated with deception, fraud or misleading promotional practices are being sought and banned by Facebook. This is in a bid to protect their users from fraudsters who have targeted the trusting users and defrauded them of their hard earned money.
In the blog post, Leathern also disclosed that the ban would not be permanent. This ban, which he described as intentionally broad, would be until Facebook can be able to isolate the misleading and deceptive advertising practices. Once their signals improve, Facebook promised to revisit the policy and ways of enforcing it.
Facebook says it wants to reassert itself as a place where its users can be introduced to new services and products without being in constant fear of scams. The blog went on to further admit that Facebook will not be able to detect every cryptocurrency ad and went on to seek the support and help from all its users. It urged all its users to report any cryptocurrency ad that they were unable to detect so that together, they can take back Facebook back to its former glory.
Facebook has been an effective way to create buzz around an ICO or to hype the predicted skyrocketing of the price of a cryptocurrency. Many cryptocurrency startups have raised millions of dollars using this method, with some using it as the sole advertising strategy. While some of the ads have been genuine and many have made money from these companies, there have been many others that have turned out to be deceptive and robbed people of millions of dollars.
Creating a buzz around a cryptocurrency has especially been effective when a celebrity has been used. The celebrity, whom many can identify with and trust, is used to legitimize the ICO which draws many and makes them ready to give up their money. Floyd Mayweather Jnr is one of the celebrities who has been used, with the cryptocurrency he endorsed being accused of deception later on. Paris Hilton as well has been a celebrity endorser of cryptocurrencies, using her social media pages for this.
Facebook went ahead to release some examples of ads that will no longer be allowed, having been extensively used in the past. They include ads asking people to use the funds they have set apart for retirement to buy Bitcoins and those asking users to participate in an ICO at a percentage discount for a specified time.
A Bad Week For Cryptocurrency
This is just one of the many setbacks that the cryptocurrency world has faced in the past few days, with their prices taking a huge hit as a result. Bitcoin has now dropped below $10,000 yet again, leaving many worried about its future, as well as that of most of the other digital currencies.
This latest drop by most major cryptocurrencies, including Ethereum, Ripple, Stellar and Litecoin is being attributed to growing fears by many about the future of cryptocurrencies. With the initial excitement around digital currencies gradually subsiding, many are now digging deeper and exercising caution when buying them. This caution has greatly hurt the prices of these currencies, with some like Cardano dropping by over 15% in less than 24 hours.
While this trend is most likely to be reversed soon as the upward trend commences again, it does leave many questioning the viability of cryptocurrencies as a long-term investment. With many countries such as Russia, South Korea and China enacting laws to better regulate them, digital currencies still have a long way to go before they win the trust and confidence of the masses.