Twitter says that a ban on all advertisements for ICOs will begin tomorrow, Wednesday March 28, 2017. But what exactly does that mean?
Twitter says that this is meant for security purposes seeing as many ICOs (initial coin offerings) can be fraudulent in nature. Knowing that it is virtually impossible to monitor all coin offerings, they’ve made the decision to ban all related ads. The decision follows both Facebook and Google who have already taken down advertisements for ICOs and token sales.
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency...Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
A large issue within the cryptocurrency advertising environment is the simple fact that the entire industry revolves around money, attracting a crowd full of scammers and people pretending to be big names in the industry. These scams can be seen with individuals and 'organizations' hyping up a certain coin that ends up being utterly useless. In other cases, individuals will say they’re giving away free Bitcoin or Ethereum while pretending to be someone like John McAfee who is recommending a certain token or coin.
These scams have become so prominent that a number of powerful crypto-beings have had combat their presence - one of which being Vitalik Buterin, the creator of Ethereum, who changed his name on Twitter to “Vitalik ‘Not giving away ETH’ Buterin”. While it may have seemed comical at first, in reality it isn’t as some people have lost thousands of dollars to scammers pretending to be someone else.
Twitter may be suspending crypto advertisements but that doesn’t mean its founder is against the industry. In fact, Jack Dorsey, Twitter’s founder and CEO, is a huge supporter of cryptocurrency. A serial entrepreneur himself, Dorsey said that his company Square Inc., would begin allowing users to buy and sell Bitcoin on its Cash App.
“Instant buying (and selling, if you don’t want to HODL) of Bitcoin is now available to most Cash App customers. We support Bitcoin because we see it as a long-term path towards greater financial access for all. This is a small step…”
Dorsey helped create Square Inc. and functions as its Chairman and CEO. It operates as a mobile payment, merchant services aggregator, and financial services company based in San Francisco, California. It is traded with the ticker symbol (SQ) since November 2015 on the New York Stock Exchange.
So, while there may be a lot of FUD being passed around regarding the ban of crypto advertisements, try looking at it from a different standpoint. Dorsey is a known crypto supporter who remains confident that Bitcoin and other altcoins are here for the long haul. Rather than creating FUD, Twitter is simply trying to stop the scammers that have torn apart the ICO market and may very well be protecting the sheer legitimacy of the crypto market.