Facebook mentioned that it was open to new technology, but they felt obligated to protect its users. In recent news, Facebook has announced that it will be blocking any type of advertising that promote cryptocurrency products or services. The company itself is open to emerging technologies, but many of these companies were not acting in good faith.
Previously, Facebook has been rolling out several rules for its advertising, which includes banning a weight loss products or services. It laid regulation 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 gain some 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 thecryptocurrency. Therefore, the user base of Facebook plays an important role in keeping these advertisements away from naive individuals that want to get into the cryptocurrency craze.
A Facebook rep also stated that they want their users to continue to discover and learn about new products and services without being the fear of being scammed. That said, there are many companies who are advertising binary options, ICO, and cryptocurrencies which are not acting in good faith.
The initial coin offering is a method of fundraising that encourages people to buy into a cryptocurrency. The new cryptocurrency will be marketed to the mass public so that they will buy in the initial coin offering. Of course, they will market the coin as possibly the next Bitcoin by saying that it will be worth a lot more money than the price today.
Some companies have even utilized initial coin offerings as a way to raise a lot of money. This is because there are less regulatory hassles, which is associated with the channel. Furthermore, the can avoid having to ask money from venture capital is that one higher returns on their investments, not by using initial coin offerings, investors get to avoid traditional investment channels that are more costly and take alonger time.
Facebook could be used to scam others
Putting in some money to generate buzz around the new scheme can be particularly effective method especially when it is paired with celebrity endorsement. In fact, retired boxer Floyd Mayweather was criticised last year because he promoted cryptocurrency became a target of a lawsuit which stated that there was deception involved during the operations. However, Mr. Mayweather has not been accused personally.
In countries such as South Korea and China, using initial coin offering is completely banned. Meanwhile, many other countries have issued regulations and warning that investors should be very worried about being involved in initial coin offerings. Most of them are frauds,and there are very little ways that the investor can ensure their money is in good hands.
Therefore, Facebook rolled out its new policy, hoping to protect its users from gams and people who are not acting in good faith. Facebook stated that the advertising platform could be used to promote financial products or services which are associated with deceptive promotional practices such as binary options, initial coin offerings for cryptocurrencies.
This is the latest move that the social media platform has been rolling out to protect the integrity of its advertising platform. Over the past 12 months, it has been under fire for enabling Russian propaganda and other inappropriate content. No doubt, the Facebook development team is constantly under watch by many people around the world because of the popularity of its social media platform.
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 for fraud to become more widespread. Furthermore, Facebook advertising is one of the ways that scammers use to get the word out about cryptocurrency offerings that may or may not be fraudulent.
Therefore, by taking away the ability of these fraudsters to use advertising on Facebook at the platform, this will make it safer for users on Facebook to trust their advertisements. Admittedly, the Facebook advertising platform is not perfect to oversee all theadvertisements that are created. Therefore, users are advised to report any advertisement that may be deemed inappropriate or misleading.