It has been an interesting time for Facebook and its relationship with cryptocurrencies ever since they made a precedent-setting move to ban adverts on their platform that had anything to do with cryptocurrency in January this year.
Now, Facebook reversed its ban and will let you advertise crypto on the social giant, but is the company setting the board for its own chess pieces?
This move is a positive one for the cryptocurrency space, which has earned back a major advertising platform on which it can reach many users. Although ICOs still get the boot.
According to Gianluca Giancola, Co-founder and Head of Design & UX at blockchain-powered loyalty ecosystem qiibee, the screening and approval process will make things much more secure, and make the platform less prone to scams being advertised. He, however, does not see much of a possibility of a similar move regarding ICO ads.
“It is unlikely to allow ICO marketing, at least in the medium-term, as ICOs continue to be highly risky. On a more fundamental level, a lot of the technology is still somewhat inaccessible to the mainstream, and invites a lot of quick-profit traders and fewer fundamental investors,” Giancola said, as quoted by EconoTimes, an online US news site.
“It remains to be seen whether the likes of Google or Twitter will follow suit, however, if they do, they are likely to introduce strict policies as well to avoid fraudulent advertising, since user security seems to be the biggest issue,” Giancola added.
‘Intentionally broad’ ban
The post announcing the original ban did mention that the policies would be revisited later down the line and that it began as ‘intentionally broad,’ however, this direct U-turn has come as quite a surprising move from Facebook, even if it is only currently being paid in lip service.
The move from Facebook opened the floodgates for other such social and internet platforms to follow on and ban anything crypto-related.
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In March, Google adopted Facebook’s reasoning for banning cryptocurrency ads. Under Google’s updated financial products policy, no advertisements for “cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice),” would be accepted.
Twitter then followed suit, confirming long-standing rumors that it would also stop all forms of cryptocurrency advertising. Twitter blocked out ICOs and other token sales, as well as advertisements for exchanges and wallet services unless they were public companies and listed on major stock exchanges.
The announcement of the Facebook ban, in January, saw Bitcoin drop, as it went from $11,200 to $8,800 over a few days after it was announced.
Bitcoin fell below the $8,000 mark in March on the news, and Ethereum went under $600 when Twitter and Google announced their bans.
Where are the chess pieces?
Facebook, the controversial social network, has already integrated payments and its Messenger platform. The company founder and CEO Mark Zuckerberg has also expressed interest in blockchain in the past; Zuckerberg thinks that he can help Facebook and fix multiple issues.
According to a report from Cheddar, a news source, Facebook is exploring the possibility of launching its own cryptocurrency.
The company might integrate this digital coin into its payment system and help them transfer money and make payments.
As per sources concerned with the matter, the company is very serious about this project; it started about a year ago with a detailed study into blockchain.
The report states that David Marcus, Vice President in charge of the Messenger app, is leading a team of approximately a dozen Facebook employees. Marcus seems to be a suitable guy as he was the president of PayPal.
It goes without saying that now nothing could be said with much certainty.
However, if it turns out to be true, it could mean a big change for Facebook as a company and its users.
It’s worth noting that blockchain, as a decentralized system, could turn out to be very useful for Facebook. It can help the company in areas like identity verification, fraud detection, and making the platform safer.