Cryptocurrencies have gained a fair amount of popularity, people are now investing in it and are actively looking for platforms from where they can do a sale and purchase of cryptocurrencies. Despite being a popular investment medium, many social media platforms have laid stringent policies pertaining to online advertising of cryptocurrency investment. The reason is pretty simple: social media platforms like Facebook and Instagram have made it mandatory for companies to seek permission when it comes to advertising news about cryptocurrencies or other financial investment. The reason is obvious, despite its growing popularity, cryptocurrencies have still not been able to be a part of the mainstream. There is a lot of apprehension surrounding its longevity and credibility.
Often when we speak about cryptocurrencies, then we think that’s it’s all about Bitcoin, Ripple, Ethereum, or Litecoin. But, here we would like to say that there are thousands of other cryptocurrencies which are worthless.
A lot of these coins are fake or parodies. The ROI that the companies promote in lieu of spending in their cryptocurrencies. These companies promote their coins on different websites as guest posts, and blogs. ICOs or Initial Coin Offering is one of the best ways to invest in cryptocurrencies. This makes it easy for small investors to invest in cryptocurrencies and earn profits. However, a lot of people fall prey to it, and many people have fallen prey to ICO scams.
The end objective of coin scammers is to expand their userbase, make more and more people use their coin, and in return, they make money out of it. Hence, many social media platforms and other websites are working on removing cryptocurrency ads. Facebook has recently joined the league.
Facebook’s and Instagram take on advertising cryptocurrency :
As we have discussed above that many people, fall prey to these scams and hence social media platforms that have millions of users. It is very easy for cryptocurrency companies to reach out to millions of people with ease, thus creating a greater proportion of people falling prey to scams. Hence, Facebook has taken some stringent actions.
The news came out in June 2018, when Facebook announced the banning of advertisements, it mentioned that advertisements must not promote any financial products and services which are associated with deceptive promotional practices like initial coin offerings, or cryptocurrency and binary options.
The only objective is to ensure that the users of Facebook or any other social media platform are not deceived or get scammed.
Facebook also talks about the following:
As per the cryptocurrency products and services ads policy, companies who are planning to run advertisements for promoting cryptocurrency, or cryptocurrency mining software, or hardware or cryptocurrency investment advice must first be eligible for it. They need to get the approval form Facebook, and once they get this approved, they must also ensure that the advertisement must not be misleading.
But when it comes to an advertisement promoting Blockchain, cryptocurrency news, or events or payment methods or digital payment tools or even merchandise do no require permission.
The crux is that companies and advertisers that adhere to the policies of the company; they can promote it on social media platforms.
To get more such interesting information and updates, connect with Blockchain council today.
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