First, Facebook banned[1] crypto ads. Then, Google announced[2] it would be banning them as well – many coins dropped[3] when the news was released. Add Snapchat and Twitter[4] into the mix and out comes an internet cocktail that is surprisingly light on crypto ads.
What does this mean for the future of crypto? The results may actually not be that bad.
Here’s a breakdown of the pros and cons of what it means for crypto to have limited advertising options.
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The Cons
One of the most immediate effects of the crypto ad ban was panic selling on the crypto market. The media has a tendency to overdramatize or generalize certain types of news, which can then lead to uninformed investors trying to drop out of a space they believe everyone will soon drop out of.
The actual effect of the crypto ad ban, in and of itself, probably wouldn’t have made much of an impact on the overall market were it not for the ensuing panic from nervous investors that this might cause the end of the crypto world. Is it the end? Of course not, but many coins were dropping as though it was, Bitcoin (BTC) included, which dropped below $9,000 on Google’s announcement. With Twitter’s recent announcement, Bitcoin has now dropped below[6] $8,000. No doubt, the crypto market is suffering in the short-term because of the ad ban news.
Beyond coins losing their value, perhaps the most obvious con is that the crypto ad ban may make it more difficult for legitimate projects to take off and get the funding they deserve. Much of what is getting banned relates to ICOs. ICOs, or initial coin offerings, are bringing new projects to investors around the world. Pretty much anyone can invest in an ICO, which opens the door to a large number of funds for the project.
2017 was the year ICOs started to take off. With over $6 billion[7] raised, ICOs seemed like they may never slow down – and things have picked up from there. Already in 2018, ICOdata reports[8] that over $3 billion has been raised through ICOs. This year, there have already been 420 ICOs, compared to 2017’s total of 881. It’s become a highly competitive market, and the speculation of fraud and lack of regulations[9] among ICOs is the main reason why ICO-specific ads are being put on the back burner for now.
What about legitimate projects though? Without the ability to advertise on the major platforms like Google, Facebook, and Twitter, new ICOs may have a tough time raising the necessary funds to jumpstart their projects. If people don’t know about the project already, then they won’t search for it.
Some people are rather upset about this. There’s a case
