A new report has come out showing how Facebook recently banned all ads on its site that have any relation to cryptocurrency or the cryptocurrency world. The company stated that it is in fact open to the idea of new technologies, but many companies in the cryptocurrency world were not acting with good faiths. Because of this, Facebook does not want to represent any of these companies or have any relation to a company that commits these illegitimate acts.
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Rob Leathern, product management director for Facebook Business stated that “we want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.” For those who don’t know an ICO or initial coin offering is essentially the same as an IPO, except instead of offering stocks, the company offers coins which can then be held on to for investment sake, or exchanges into another currency of the owners choice.
Many of the companies that have put out these ICOs have done so through illegitimate means in an attempt to commit types of pump and dump schemes. The market on ICOs is completely unregulated which means that it is essentially a free for all. This is not to say that many ICOs and the majority of them are legitimate, and used as a way to raise capital for companies that have legitimate ideas. With Facebook representing a large image across the world throughout its many channels, it is no wonder that the company will stray away from anything they deem to be sketchy or illegitimate in nature. Hopefully, as the industry becomes more legitimate, more and more individuals will be able to advertise on larger sites like Facebook.