Facebook U-turn on crypto ads brings little change to market
After January's ban, the social media giant says 'pre-approved' crypto-currency ads and content are now allowed but ICO ads will remain prohibited
The jittery crypto-currency markets are in dire need of some good news. The bears have a stranglehold on them at the moments and billions of dollars worth of digital currencies and tokens are being sold off every day.
Facebook could provide a lifeline however, albeit a thin one, with its announcement that it is reversing its crytpo-currency advertising ban.
Markets were tumbling yet again on Wednesday as another $10 billion was shaved off overnight. Bitcoin had lost most of its gains since the weekend and was falling back towards $6,000 at the time of writing. Social media and advertising can have a big impact on market sentiment, however, although the effectiveness of Facebook as a medium has yet to be measured.
In January the social media giant announced a new policy that “prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices.” This included crypto-currency and at the time was seen as a major blow to the industry and its markets, that were already sliding.
In a blog post yesterday the company announced that it was looking to refine this policy to allow what it considers “safe” crypto ads. It went on to state that starting on June 26 it would “allow ads that promote cryptocurrency and related content from pre-approved advertisers.” Advertising for initial coin offerings (ICOs) will still be prohibited though.
Product Management Director Rob Leathern went on to state that those wanting to use the platform for advertising crypto-currency related products would need to submit an application to enable the company to assess their eligibility. Information such as any licenses obtained, public background on the company and whether or not it is publicly traded on stock exchanges will need to be included.
“Given these restrictions, not everyone who wants to advertise will be able to do so,” Leathern added.
In essence, Facebook is cherry-picking its clients, which will enable the social media monopoly to censor or sanitize what its users see in terms of crypto adverts, but in the grand scheme of things it is unlikely that this announcement will affect market sentiment. Facebook has become a hotbed of clickbait, scams and spam recently and tech savvy crypto traders and investors have learned to avoid it.
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