With any kind of revolutionary idea, there will always be two sides of the adoption coin. One side will be evangelical on how such an invention will change the world.
On the other hand, there are people believing that it’s just hype, and some will even go to the extent of trying to block or ban the invention.
This has been true for inventions as revolutionary as automobiles and the internet, and it seems that cryptocurrency is not an exception.
Recently, Facebook announced that it is banning cryptocurrency-related ads in their network.
According to an official statement from Facebook, the popular social media network is banning all advertising that is associated with Bitcoin and cryptocurrencies.
The main reason behind the move is to protect users from “financial products” that are frequently linked to scams and fraudulent practices.
This a sort of an umbrella ban as Facebook is preventing even legitimate cryptocurrency businesses from advertising within the site’s ad network.
Anyone who is caught trying to circumvent the new policy will see their account barred. This means that the would-be advertiser is prohibited from advertising their products in Facebook’s network.
This includes Instagram and Audience Network. It’s worth noting that Audience Network is an advertising platform that can be integrated into other apps, and this means that Facebook has a wider reach than might be assumed.
Facebook also states that they are intentionally being broad when it comes to what the ban covers.
According to the company, it’s their way to ensure that they have maximum capabilities when it comes to protecting users from fraudulent cryptocurrency-related campaigns.
Because of the astronomical growth of Bitcoin and other cryptocurrencies, a lot of people are entering the market. These newcomers are often categorized as “unsophisticated investors,” and chances are high that they are going to lose money before they make some.
Facebook has said that the new policy, under the site’s Prohibited Financial Products and Services terms, is just an initial move to safeguard users from crypto-related scams. Facebook also admits that the ban may be a bit too extreme, but they would rather be on the safe side.
Furthermore, Facebook also stated that they would be revisiting the policy in the near future and make a decision if a revision is needed.
Bitconnect’s implosion may have contributed to Facebook’s decision of banning crypto-related ads. Bitconnect was advertised as a lending program that can offer up to 30 percent returns per month.
It claimed to have a “volatility trading robot” that does automatic trades for them, which then allows them to pay their users such high returns.
For many, the setup was a straight-up “Ponzi scheme.” In January 2018, Bitconnect shut down its lending platform.
For Bitconnect critics, this was a clear sign that the company was closing their Ponzi scheme to cash out.
At the time it ultimately shut down, Bitconnect had a cap of billions. And if the people behind the platform were truly running a Ponzi scheme, they ran off with billions in their pockets.
It has been noted that there are other “lending” companies that also heavily advertise on Facebook. From the looks of it, they are also running the same business model of Bitconnect.
Facebook may have decided to take a moral stand and chose to protect its users.
On the other hand, the cryptocurrency community is not so happy about Facebook’s decision. The community is quick to point that Facebook’s decision seems to have isolated the cryptocurrency markets.
After all, Facebook is not banning advertising content from sports betting, stocks, Forex and other investment platforms—all of which are also vehicles that anyone can lose money from.
The cryptocurrency community is fearful that Facebook’s stance will have a negative long-term effect on the entire cryptocurrency market. With Facebook’s global reach and influence, it’s a legitimate concern.
However, when it comes to blockchain technology (the technology that powers Bitcoin and most cryptocurrencies), Facebook CEO Mark Zuckerberg seems to be very fond of its potential, publicly stating that he is looking for different ways of integrating the technology into Facebook.
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