What’s Going On?
The news site joined publishing giants Facebook and Google in banning advertisements for initial coin offerings (ICOs) and token sales.
Why Does It Matter?
Some believe the move may support coins and tokens that are already trading as it makes the barrier to entry harder for new offerings whether well-intended or fraudulent.
Facebook banned crypto-ads in January. This also applied to partner platform Instagram and its advertising platform, Audience Network. Google did too, banning ads from June 2018. A host of other platforms have followed suit – marketing platform MailChimp banned broadcast emails from ICOs from April 30. Many in the industry have welcomed the move.
Anna Hejka, a non-executive independent board member at DasCoin says: “The amazing success of cryptocurrencies has made a lot of platforms nervous because many of the ICOs have been raising money without even having a business plan behind them. This was a space that was a Wild West. But platforms all over the world are embracing the new technology themselves. For their customers, they are just trying to be careful.”
Why Have The Big Platforms Moved Now?
While major publishers claim they have enacted the bans in order to reduce the threat of fraud for their customers, it is no surprise that they became jittery after the United States Securities Exchange Commission (S.E.C.) began subpoenaing crypto-exchanges and currencies late last year. It is likely that as the regulatory environment matures in different jurisdictions, so will the advertising market.