Twitter Outlaws Cryptocurrency Advertising In Most Forms

Twitter has announced that it will ban most forms of cryptocurrency advertising. This comes as Facebook and other online groups have been weighing or implementing bans of their own.

Twitter is outlawing these advertisements to keep cases of fraud and deception from being prominent on the site. Twitter has expressed concerns surrounding ICOs and how they might be potentially risky or otherwise signs of clear frauds.

The ban ensures that token sales and other offers involving such currencies will be prohibited. The goal is to keep people from being at risk of being cheated upon by many of the groups that offer some of these investments.

The announcement caused the values of many cryptocurrencies to decline. These included drops of a few percentage points with the bitcoin going under $8,000 for the first time in weeks. The move comes as the currency market has been struggling to rise up in value and has been subjected to many other impacts and attempts at some form of special regulation.

Who Can Advertise?

Some cryptocurrency-related companies may still advertise on Twitter. But to be eligible, a company has to be listed on a major stock exchange. Also, wallets and exchanges that are listed can place their ads on Twitter, but the currencies being offered themselves cannot be utilized. Twitter is doing this with the knowledge that groups that are listed on stock exchanges tend to be carefully scrutinized and are therefore less likely to be suspicious or capable of causing harm.

Such groups would still have to go through the same process for getting onto Twitter. This includes providing information on one’s advertising content and signing up for regular accounts. Twitter did not say if companies that are eligible to advertise would have to pay anything extra or if they could still advertise like any other group on the market.

Dorsey’s Support

This move by Twitter to outlaw most cryptocurrency advertising comes as Twitter CEO Jack Dorsey has been supporting the cryptocurrency market in recent time. He has been working to get the bitcoin to be accepted on Square, a mobile payment program that he is also the CEO for.

Dorsey also stated in an interview with a United Kingdom publication that he feels the bitcoin is going to experience a sizeable increase in its value in the future. This would include the potential for the bitcoin to be the only currency that people would use throughout the world.

Impact on the Value

The bitcoin experienced a drop in its value following this decision from Facebook. The bitcoin went below the $8,000 mark that it had been hanging over for the past few weeks. The coin was listed at around $8,500 at the start of the day and got stuck around the $8,000 mark since the announcement came about.

Most other currencies on the market experienced sizeable declines, although those were by around 2 to 5 percent of their value on average. A majority of currencies have managed to stabilize themselves and avoid dealing with further declines since then.