Google is Banning All Cryptocurrency, ICO Ads
Following January’s Facebook crackdown on all cryptocurrency related ads, Google is taking the same steps in an effort to combat fraudulent activity.
Google’s advertising policy change will take effect in June of this year. It will ban all advertisements which promote cryptocurrencies and related content (exchanges, wallets, trading advice), as well as ICOs (Initial Coin Offerings).
The policy change will also affect financial spread betting, Contracts for Difference and rolling spot forex. However, instead of an outright ban on these products and services, advertisers will need to apply for a special certificate that will give them permission to advertise.
Good News or Bad News?
The news of Google’s impending ban had an instantaneous impact on the cryptocurrency market, as Bitcoin dipped nearly 10% in value, but it is now quickly bouncing back to where it was.
Although the news may initially seem as bad for the health of the cryptocurrency market, the majority of traders would beg to differ. The truth is that most crypto-related ads on Google involved Initial Coin Offerings (ICOs).
What are ICOs?
Initial Coin Offerings are used by crypto-related startups looking to raise funds for their project. In essence, it means crowd-funding for a new cryptocurrency venture, with one important distinction: early investors would later get a return surpassing their initial investment.
Early backers usually trade their cryptocurrency in exchange for the startup’s newly-formed currency or “free” service/s of their product, equivalent to the amount invested. An example of a successful ICO is Ethereum, which is now among the top 10 cryptocurrencies in terms of value. But, such examples are getting few and far between.
Many ICOs have a fraudulent purpose which attract backers based on false hype. Back in November of 2017, the owners of cryptocurrency startup Confido vanished into thin air with $375,000 of value, scamming all investors with no repercussions. As ICOs are not regulated by any entity, the risk of being an early adopter is huge. This is why Google’s ban comes as good news for crypto enthusiasts.
Of course, Google’s cryptocurrency ads were not all related to ICOs, but experts argue that the people who would adopt cryptocurrency based off ads would be the first ones to panic sell, therefore they would have a negative contribution to the stability of the market.
Moreover, an ad-free crypto market on Google means that all crypto-related search results will be purely organic. This means that no business entity or otherwise can force their products down your throat, regardless of the size of their marketing budget. That is, unless Google itself decides to get in on the action, which some experts begrudgingly speculate.
In other news, following Facebook and Google’s bans, it is rumored that Twitter may follow suit. However, as Facebook and Google’s bans had a minimal and temporary market impact, hardly anyone is panicking because of Twitter’s speculated ban.
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