Since January of this year (2018), when Facebook first stated that it would be banning almost all forms of cryptocurrency advertising on its site, many of the big hitters online like Google and Twitter have also followed suit.
Twitter updated their advertising policy in March banning almost all forms of advertising related to cryptocurrencies except for companies who dealt with digital tokens and were listed on a major stock exchange. Google also made similar statements about cryptocurrency advertising on its site as well as its partner network but has come out with its updated policies as of yet. They are expected to do so sometime in June.
While this may seem that the world of cryptocurrency startups and the blockchain technology as a whole will take a severe hit because of this, many cryptocurrency entrepreneurs have welcomed these advertising bans and have actually stated that it might be a good thing for those invested in blockchain and startups coming out with their own Initial Coin Offerings (ICOs).
Doing Good Despite The Ban
Many blockchain companies and cryptocurrency startups are in favor of the ban as they feel it will get rid of those advertisers who are not legitimate and are actually misleading the public at large – the main reason for Google, Facebook, and Twitter’s decision.
According to Arran Stewart who co-owns Job.com which uses blockchain technology, “The only people who are going to be worried are the people who don’t have good intentions. If you allow these apples to remain, you lose consumer confidence from the masses”
Stewart’s sentiments are widely agreed upon by most legitimate companies dealing with blockchain technology and companies offering their own form of digital currency. Those who believe in the future of blockchain and want to legitimize it, are in favor of the advertising ban and see it as a step in the right direction.
Where The Traffic Comes From
Most companies who have a long-term stake in digital currencies receive most of their traffic (customers and leads) through word of mouth and private networks, and therefore believe that false and misleading advertising would only help to give a bad reputation to those working hard to legitimize the industry.
If scammers are left to their devices, current and potential customers may lose faith in the long-term possibilities of blockchain technology and not want to invest or participate in the future of cryptocurrencies. This would bring all forms of blockchain advancements to a halt, and of course, reduce the value of digital currencies in the eyes of the masses.
In this particular case, bad advertising leads to fewer customers for those who rely on reputation as their main form of advertising. So while some customers may be lost due to the recent bans, the long-term effect will most likely increase the customer base of legitimate blockchain and cryptocurrency service and product companies in the future.
Other Platforms Will Follow
The move by the big three – Facebook, Google, and Twitter – is sure to set off a widespread ban among other big sites who make their living through advertising dollars.
This past month, email service provider, MailChimp, joined the bandwagon and posted similar updates relating to the banning of cryptocurrency advertising through their platform.
Reddit, a very popular social news sharing and rating site, was actually the first to ban cryptocurrency advertising on its site back in 2016. The reason for their ban was the same – too many misleading and fraudulent advertisements related to cryptocurrencies.
While the largest advertising platforms on the web have already made their decision, the ripple effect is expected to continue this coming year and impact similar, although less popular, sites who sell advertising space on their sites.