Yesterday, the social media giant, Facebook, confirmed that they had issued a ban that prevents any advertisement related to cryptocurrencies or initial coin offerings (ICOs) from displaying on their platform. According to the official policy, no advertisement is allowed to promote any financial service or product that is associated with the industry. So far this decision has been welcomed by frequent users of the platform, as well as cryptocurrency advocates who believe that ads on the platform do not encourage the industry in any way have welcomed this decision.
When it comes to cryptocurrency education and information, Facebook is not high up on the list of possible resources. Statistically, Facebook users often demonstrate less technically savvy than their Twitter, Reddit, or Instagram counterparts, which make them significantly more vulnerable to deceptive advertisements, especially when it comes to cryptocurrency. So far Facebook has given rise to questionable characters such as James Altucher, who mislead users with their bitcoin-based get rich quick schemes that have no inherent merit or benefit to the industry.
Yesterday, the Product Management Director of Facebook, Rob Leathern, wrote that Facebook wishes to serve as a platform through which users can educate themselves on new services and products without fearing deceptive advertisement or fraudulent campaigns. Leathern added that to date, Facebook had experienced too many cryptocurrency-based companies and ICOs, whose claims were fraudulent and misleading.
Leathern added that the company opted to make their policy broad to prevent any further misleading and deceptive advertising campaigns from being circulated on their platform. This policy will extend to Instagram, Audience Network, and Facebook.
This decision is likely to benefit the entire industry and its community. To date, several fraudulent and harmful companies such as Arise Bank and Bitconnect have chosen Facebook as their method of advertising, as it offers them shelter from the prying eyes of crypto-educated Twitter users who make a habit of holding these companies accountable. Previously, ads flooded the Facebook platform which promised vulnerable users ICO tokens at discounted prices and high return on investments.
Facebook has a history of being picky when it comes to the ads that they are willing to display. The company has a list of supplements and health foods that are prohibited from advertising on the platform. Cryptocurrencies and ICOs have now been added to the ever-growing list.
Most crypto enthusiasts feel that real ICO campaigns likely does not need Facebook advertising in the first place and that any legitimate token sale has plenty of opportunities to create hype without needing Facebook ads.