Facebook is one of the many companies that has been vocal about their intention to adopt cryptocurrency as part of their technology. However, they did express their concerns that they feel obligated to protect their users. In recent news, Facebook has announced that it will be blocking any advertising that promote cryptocurrency products or services. While the company itself creates an open policy to emerging technologies, it was concerned that the cryptocurrency products being introduced would cause harm to its users.
Previously, Facebook laid out several rules for its advertising, which includes banning weight loss products or services. Now, it includes banning of any cryptocurrency related advertisements. With the new wave of cryptocurrencies emerging over the past year, more people are piggybacking on Bitcoin’s huge success to make quick money.
Facebook has told its visitors that if they see any cryptocurrency ads, they should report it in case the company missed out on some security measures. Admittedly, Facebook cannot catch every advertisement for the cryptocurrency. Therefore, Facebook’s user base plays an important role in keeping these advertisements away from naive individuals that want to get into the cryptocurrency craze.
To Facebook, it is important that customers are given the opportunity to be exposed to different types of goods and services through their advertising. However, their priority is to ensure that these advertising won’t cause the users harm. Unfortunately, there are some companies which are engaging advertising services with Facebook that are not acting in good faith when advertising anything related to cryptocurrencies. This is particularly even more so for ICO.
Simply put, initial coin offering is a fundraising mechanism that developers use to sell new tokens. It is a method to get the word out about cryptocurrencies, and it offers financial returns to the investor when the valuation of the token increases in the future. To create marketing hype, a lot of advertisers are dishonest about their offerings and make things seem too good to be true.
Understandably, ICO is a great way to raise money because it is easy to launch it and there are less regulatory supervisions placed on ICOs. Furthermore, founders can avoid having to ask money from venture capitalists that want higher returns on their investments. By using initial coin offerings, investors get to avoid traditional investment channels that are more costly and take a longer time.
Facebook could be used to scam others
Marketing through Facebook and Google have been very effective for the ICO as it gets the word out about a particular new alternative cryptocurrency. In fact, cryptocurrencies have also been turning to celebrities and sports figures such as Floyd Mayweather. The retired boxer was promoting a cryptocurrency which became the target of a lawsuit as there was market manipulation done by the developing team. Despite this, Mayweather was not accused personally.
In countries such as South Korea, initial coin offering is completely banned. Meanwhile, other countries have issued regulations and warning that investors should be concerned when involved in initial coin offerings. Most of them are frauds, and there are very few ways that the investor can ensure their money is in good hands.
With the new policy that Facebook is rolling out, it hopes that this can protect users from harm and companies who are not acting in good faith. Under the new policy, advertisements which are related to binary options, initial coin offerings, and cryptocurrencies can no longer be advertised. As a powerful advertising and social media platform, Facebook is constantly under watch because it plays a huge role in advertising certain goods and services. In fact, it has been under fire in the past for propagating the Russian propaganda and other inappropriate content.
As Facebook is a highly influential social media platform, this move is beneficial for its users that may have not discovered cryptocurrencies outside of Facebook. Hence, this increases the integrity of the advertising platform. This will also act as a deterrent so that fraud won’t become more widespread. Furthermore, Facebook advertising is one of the ways that scammers use to get the word out about cryptocurrency offerings that may be fraudulent.
Therefore, by taking away the ability of these fraudsters to use Facebook advertising, this will inspire confidence in Facebook users to trust the social media platform. Admittedly, Facebook advertising cannot oversee all the advertisements that are created. Therefore, users are advised to report any advertisement that may be deemed inappropriate or misleading.