Cryptocurrencies, most notably Bitcoin, has made headlines with their massive rise in value, but followed by steep declines.
While that is the nature of the decentralized cryptocurrencies, the volatility started a trend. Many people want easy money, and a result, too many scams happened. Here, Facebook has enough of them.
The social network is banning all ads related to bitcoin, cryptocurrencies, and ICOs, it announced on January 30th, 2018, as it attempts to crack down on people's malicious schemes to trick others in spending their hard-earned money for nothing.
According to Facebook, ads that promote cryptocurrencies are “frequently associated with misleading or deceptive promotional practices.”
The policy is "intentionally broad", while Facebook works to understand which of the ads are deceptive or misleading, from companies “not currently operating in good faith."
Facebook and its properties, including its Audience Network and Instagram, aren't anymore allowing ads that say "Use your retirement funds to buy Bitcoin!” for example, or those that promote binary options trading that is regarded as a risky derivative.
There have been a number of instances where people or companies have raised money through an ICO. But because many of them didn't have solid structure with no apparent businesses behind them, regulators are cracking them down.
Still, Bitcoins and other popular cryptocurrencies have given many early adopters a hefty fortune. This what started the trend.
Many investors are digging into the hype, and many companies started to put interest in those digital coins. Many of them have even capitalized on the trend, mostly by announcing cryptocurrencies on their businesses that don't even relate.
LIke from companies that create packaged-food to sports-bra manufacturers. Many saw their shares surge by just linking their companies to cryptocurrency, even by just a name.
This practice has made the market filled with scams, fraud and other risks. And here, Facebook is not liking it.
"Two of our core advertising principles outline our belief that ads should be safe, and that we build for people first. Misleading or deceptive ads have no place on Facebook," Facebook said.
According to Facebook’s product management director, Rob Leathern:
“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” Facebook said.
But in the post announcing the news, he suggested that Facebook may tweak the policy at some point in the future to let legitimate crypto-related businesses to advertise again.