Twitter has become the latest social media network to block adverts pertaining to cryptocurrencies, beginning today. Facebook, in January announced its ban on cryptocurrency and Initial Coin Offers (ICO). It based its decision on the many fraudulent offers and encouraged its users to report any adverts it missed out. Tech giant Google had earlier this month, announced that it would ban cryptocurrrency adverts by June.
Why is this major?
ICO promoters and the various communities will be badly affected by this move as twitter is a key means of promotion for many of these coins.
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.
ICOs are largely unregulated, and in recent times have become bogus. The social media giants may also be keen on avoiding a situation where they are held legally liable for false claims made in these adverts.
The Central Bank of Nigeria (CBN) and Nigerian Deposit Insurance Corporation (NDIC) have all issued warnings about the dangers of investing in cryptocurrencies. Nigeria’s Senate has also echoed similar sentiments mandating its Committee on Banking and other Financial Institutions has also been instructed to look into the viability of bitcoin, and possible regulations of its trade.
Cryptocurrency markets have reacted to the ban, with bitcoin dipping below the $8,000 mark. Market capitalization is currently at $300 billion.March has been a bearish month for cryptocurrencies due to negative sentiments, and concerns about regulations in South Korea.