Twitter is following other social media giants, Facebook and Google in banning initial coin offerings, token sales and crypto-wallet services starting from Tuesday 27 March.
Included in Twitters new policies are crypto exchanges who will no longer be able to advertise on its platform, however there will be a restriction on cryptocurrency exchanges and wallets of public companies that are listed on major stock markets. This latest move is to prevent potential fraud and deception leading to investor losses.
Google’s ban comes into effect in June with Facebook restricting advertising on any related cryptocurrency.
Director of Kapronaia, a financial consultancy firm said that the repercussions related to fraudulent activities for Twitter is not worth the risk. He said that it is almost impossible for platforms like Facebook and Twitter to identify who is genuine and who is not, especially with the ever increasing new ICOs coming into the market.
On the Luxembourg Bitstamp exchange Bitcoin dropped 5 percent to $8,062 on Monday with Ripple XRP and Ethereum also tumbling.
Investors were spooked with fears of regulatory clampdowns and since Decembers peak of nearly $20,000, Bitcoin has fallen more than half of its value. Knocking down the price even further has been the bans by Google and Facebook.
Source of Revenue
Although paid promotions of cryptocurrencies is a big source of revenue for social media platforms research suggests that ‘ad bans’ may not be hurting crypto sites that much. Web traffic tracker, SimilarWeb found that traffic from paid ads on exchange sites only accounted for less than 1 percent. Instead traffic is derived from most cryptocurrency exchange sites like coinmarketcap.com.
CEO of BKCM, Brian Kelly said that for cryptocurrency markets the Twitter news is a ‘non-event’. There is increased trading in South Korea after the country embraced crypto trading.