Businesses related to cryptocurrencies and blockchain may have to without Facebook promotion, as the social network has revised its advert policy with respect to cryptocurrencies and blockchain. The company made this known in a notice posted on its website. The ban also affects its other social media platforms, Instagram and Audience Network.
Why Facebook made the move
Rob Letter, Product Management Director who authored the notice on behalf of the company stated that it was due to many Initial Coin Offers and cryptocurrency adverts not being totally honest. The policy, will be revised when things improve. In addition, Facebook also encouraged users to report any of such adverts that the company may have missed out on.
ICO stands for Initial Coin Offering. It is a means whereby companies raise capital either for a new coin or a project. To participate, individuals pay a certain amount of money either as bitcoin or ethereum. Participating in an ICO, does not grant ownership of the company behind the project.
ICOs have witnessed a huge surge recent due to the demand from investors seeking a high rate of return. New coins often trade very highly in their first few weeks of opening, some as high as 1000% in a few days . Companies and businesses have also raised money en masse through ICOs because they do not come under the scrutiny of regulators in the finance industry.
Facebook was launched on February 4 2004, by Mark Zuckerberg and his fellow classmates Eduardo Saverin, Andrew Mccallum, Chris Hughes and Dustin Muskovitz, The company has since expanded into other areas buying Instagram for $1 billion in April 2012 and Whatsapp for $19 billion in February 2014. 2016 revenues were estimated at over $25 billion and the company has over 20,000 employees.