Twitter announced this week that they are banning advertisements for cryptocurrencies, joining technology giants Google and Facebook.
After Facebook and Google announced that they would be banning advertisements for cryptocurrencies earlier this year, Twitter announced this week they would be putting a similar policy into practice starting on March 27.
The Twitter advertisement ban will cover ICOs (Initial Coin Offerings) and token sales, both of which have been notorious for questionable business practices. Financial regulators across the globe have warned investors against investing in volatile investment vehicles like ICOs.
Zennon Kapron, director of the financial consultancy Kapronasia, explained that social media platforms are moving to block cryptocurrency ads because the sheer amount of them can be hard to manage. “With the increasing number of ICOs coming to market, it is an impossible task for anyone, much less platforms like Twitter or Facebook, to keep on top of which ICOs and cryptocurrencies are genuine versus frauds.”
“Although certainly ICO advertising must have been a significant source of revenue for Twitter, the repercussions of fraudulent activities just weren’t worth the risk,” Kapron added.
At the beginning of 2018, after Facebook announced that they would be banning cryptocurrency ads from the platform, Mark Zuckerberg announced that he was planning to learn more about the space.
“There are important counter-trends to this, like encryption and cryptocurrency, that take power from centralized systems and put it back into people’s hands. I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services,” Zuckerberg wrote.