On January 30th, Facebook announced the prohibition of any form of cryptocurrency related advertisement, with a special focus on those pertaining to any ICO investment opportunity. This was contained in a statement by its product management director, Rob Leathern.
Facebook's core principles:
In his statement, Leathern described cryptocurrencies, as well as ICOs, as products and services that are frequently associated with misleading or deceptive promotional practices, such as ICO scams. He notes that such products do not align with two of the core principles underpinning the company's belief which include that ads should be safe, and that the people builds for people first.
The enacted ban, by the world’s largest social media platform, has been received with mixed feelings within the crypto ecosystem. While some see it as the reason behind the most recent dip in the prices of bitcoin and other cryptos, after a short period of upside momentum, others see it as a positive development for the industry due to various reasons.
Reportedly, renowned American hedge fund manager, James Altucher, acknowledges the development to be a positive one for the crypto industry.
“I think this is a very good move for Facebook. There are many scams and illegitimate services out there”, says Altucher.
A sign of acknowledgement:
In a tweet, a user with the handle @CryptoBarTalk views it as a double-header, noting that the ban reveals a show of acknowledgement of the crypto industry by Facebook, while attempting to protect its users at the same time.
While bitcoin and other cryptocurrencies continue to grow, the protection of users against insincere practitioners and potential investment risks is a task that is yet to be accomplished effectively. With the debate as to what extent the role of regulation in the crypto industry is, we may not have yet seen the last of popular bans and restrictions.