Facebook bans crypto advertising on their platform

13 May, 2018
by Ryan McInally
News
Facebook bans crypto advertising on their platform

Popular website Facebook made a move recently to ban crypto advertising on their platform. Advertising is a huge source of revenue for the social media website who nets around $1 billion per quarter in advertising alone.

Facebook might be a social network site, but it’s also a very profitable marketing tool that makes money by collecting data on individuals and allowing advertisers to market ads to very specific audiences. On Friday we reported that Facebook is “very serious” about launching their own cryptocurrency, which will facilitate payments on the companies’ marketplace. Facebook has a current user base of around 2 billion people with a marketplace value of around $5 billion.

Despite Facebook’s CEO and founder Mark Zuckerberg showing a deep interest in adopting new technology his company has followed other platforms such as Twitter in banning advertisements promoting cryptocurrencies and initial coin offerings (ICOs) – one popular method in raising investment outside of traditional funding vehicles like banks.

Hypocrites or Protecting their User Base?

Crypto currencies are ripe with scammers trying to profit off unsuspecting investors. Individuals are duped in a variety of ways when buying or investing in various types of cryptocurrencies. Some people on Reddit concluded that the move from Facebook was to protect users from scammers.

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Other users pointed out the logistics for vetting every ICO would be nearly impossible.

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One of Facebook's policy directors, Rob Leathern, said the policy would be revisited once Facebook has a better understanding of cryptocurrencies.

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