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The ban of cryptocurrency advertisements in social media and search engines

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7 months ago
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The advertisements related to ICOs, token sales and cryptocurrency wallets were firstly banned in Facebook in January, then Chinese web companies Alibaba, Baidu and Tencent have also supported this initiative. Snapchat has already prohibited them too and all the Google services won’t allow this kind of ads from June. Oath company, that holds AOL and Yahoo, doesn’t permit the ICOs and any “specific currencies” promotions. According to the latest news, Twitter can also join this “banning” team soon. Yandex Direct has never showed such ads and doesnät plan to change its current policy.

Important! The prohibition of cryptocurrency advertisements is not a synonym to the blockchain projects commercials blocking. This toughening is not applied to blockchain technologies unrelated to cryptocurrencies and ICOs.

Which services haven’t still banned the cryptoads?

Nevertheless, there are some services that haven’t applied any measures against such a kind of advertisements. As Rick Hanna, a digital strategist with BTC Inc, told to Bitcoin Magazine, LinkedIn, Medium and Reddit will become more popular social media platforms with the following restrictions. Moreover, last year Microsoft as the Bing owner received $6.97 billion only from commercials, it means this search engine might become the largest alternative platform for cryptocurrency ads.

What are the reasons of the prohibition?

Summing up all the reasons of cryptoads blocking, we have underlined the following ones:

  • Unregulated sphere. The cryptocurrency market is beloved by entrepreneurs and startup owners, but it is unregulated in most of the countries. In particular, SEC has warned The U.S citizens about the risk of the cryptoactivity and investing in ICOs;
  • Number of scams. This point truly makes sense, because since the rise of interest to cryptocurrency theme many fraudulent schemes were detected. For example, in Twitter there were huge scandals with pseudoICOs made by fake Charlie Lee and Vitalik Buterin (the criminals forged the blue tick that verify personality of the account owner);
  • Reputational risks. This point is closely related to the previous one. Number of scams, that have already got the money of trustful investors, has an influence not only upon the cryptocurrencies reputation, but also upon the services that provide these commercials. Not every ad can be checked by moderators, that’s why poor-quality information can be provided to users.

Which treats the ban has?

Trevor Gerszt, CEO of cryptocompany CoinIRA, told to Mashable that the prohibition wouldn’t affect larger companies, but it might affect smaller businesses that need recognition. From the one hand, it will be harder to get money from ICOs without advertisements on the well-known platforms, but from the other hand, this fact can become a good stimulus for business tying in real life instead of funds collection from unknown investors.

Tatiana Moroz, the founder of Crypto Media Hub, explained her position about bans to Bitcoin Magazine. From her point of view, it will cause even worse consequences for the prohibiting corporations, lowering their total revenue. She has also noticed that the SEC politics upon cryptocurrencies is unclear and allowing cryptoads the authorities might open themselves up to legal liability.

As Oksana Belyanskaya, the co-founder of Rocket PR company, told to Bitnovosti, there are three possible scenarios connected with these advertising restrictions. The first one is connected with future licensing of the cryptocurrency sphere: if it becomes regulated, all the advertising bans will most likely be abolished. Anyway, the companies might circumvent the bans by avoiding to use the words “ICO”, “cryptocurrency” and their fusions in white papers and texts for advertisements.  

The second option entails the cyptocompanys’ work on their PR history and reputation to provide potential investors possibility to invest their assets into qualitative projects, not frauds. Inasmuch as the Facebook, Google and Snapchat’s misgivings about the fraudulent schemes are one of the reasons of cryptoads bans, the trust into cryptoworld really needs to be formed.

The last scenario, which Belyanskaya reiterated, is that the companies will readdress their advertising spendings to other communication channels, like Vichat, Viber and Telegram, direct banner advertising or classic public relations schemes.

Anyway, for social medias the qualitative advertising is needed as well as cryptocurrencies need to be legitimized as a financial instrument not to face any of the problems.