Social media platform Twitter is to start banning cryptocurrency advertisements from tomorrow.
The San Francisco-based firm will this week launch a policy that prohibits advertising of initial coin offerings, a form of crowdfunding used to raise cash by creating new coins. All ICOs and token sales will be banned, but cryptocurrency exchanges and wallets will be restricted to only public companies listed on major stock markets.
In February, Rob Leathern, Facebook's Product Management Director, made the announcement via the company blog, stating that Facebook's new policy was aimed at curbing "misleading or deceptive promotional practices" related to ICOs and cryptocurrencies.
Bitcoin being the top crypto has undergone a great fall this week. Bitcoin is sliding 6 per cent today, approaching the $8,000 level, and is down more than 50 per cent from an all time high of nearly $20,000 in December. It's also an important source of news and whisperings.
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While critics call cryptocurrencies a Ponzi scheme that will end in tears for most investors, supporters say the coins are backed by powerful new technology that can replace traditional fiat currencies and upend the existing banking system. As of the writing of this article, the value of Bitcoin is right around $8,000 per coin, which includes a drop of about 6 percent for the day.
In fact, to hear Reuters explain it, it sounds like Twitter is going to cut back on most cryptocurrency advertising.
The U.S. Securities and Exchange Commission sent a number of subpoenas earlier this month to ICO teams it suspects are breaking securities regulations, and it has warned since July that some of the offerings may be breaking securities regulations.
Though services like Twitter and Google are taking a big stance against paid promotions of cryptocurrencies, research suggests that social media platforms' ad bans may not be hurting digital token sites much. Twitter said on March 7 that it was implementing measures to prevent crypto scams.