By removing all crypto ads Facebook is just trying to instill its credibility, along with allowing people to continue to learn about and discover new products through Facebook WITHOUT fear of deception or being scammed.
Many companies were offering binary options, ICO’s, and cryptocurrencies on Facebook that were not up to their standards of integrity.
What is an ICO and why would Facebook ban these ads?
An ICO is an initial coin offering. It encourages people to buy into a new cryptocurrency before it’s launch in hopes of its success. As an investor you know it is very possible for money to be made by investing in ICOs. This means there is potential that one day the coin they bought is worth much more money. We have seen great success for some ICO’s. Some have been able to raise great amounts of money avoiding regulations that come with raising funds through more traditional investment opportunities. This is great for the people behind the coin but because of this, many ICO’s have up and vanished.
Both China and South Korea have banned raising money using an ICO & regulators in other countries have also been warning against it.
Although Facebook has done its best to weed out all crypto ads, they did mention that some might slip through. Encouraging anyone who catches their mistake to please report it and make them aware of the situation.
Facebook wants to look like a credible source while limiting liability.
No one knows yet just how regulators will react the cryptocurrency, so it makes sense that Facebook is trying to play it safe. On the other hand, I am unsure if it was necessary for Facebook to ban “ALL” crypto ads.
Is Facebook helping the Crypto community or hurting it?