Social networking giant Twitter has confirmed that it will be banning advertisements for initial coin offerings (ICOs) and token sales on its platform, as part of a crypto crackdown aimed at protecting users/investors from fraud and scams.
Speaking to CNBC on Monday, a Twitter spokesperson stated:
“We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter Ads relating to cryptocurrency. Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
“We know that this type of content is often associated with deception and fraud, both organic and paid, and are proactively implementing a number of signals to prevent these types of accounts from engaging with others in a deceptive manner.”
Earlier this month, reports emerged that Twitter was planning to roll out a new advertising policy within two weeks, which would ban crypto-related advertisements. The reports led to a temporary dip in Bitcoin’s price.
In prohibiting ICO and token sale-related ads, Twitter joins Facebook and Google, who have also introduced bans on crypto-related ads.
However, Twitter is no stranger to the dark side of the crypto-world – while the platform has been popular among crypto enthusiasts, it has also been used to perpetrate a number of crypto-related scams. Earlier this month the company confirmed that it was working on protecting its users from deceptive schemes, and CEO Jack Dorsey made a similar commitment.
While digital currencies have numerous advantages to offer – decentralization, privacy, and the potential to bank the unbanked, to mention a few – the sector has also seen its fair share of scams and hacks, particularly where ICOs are concerned.
While they have proven to be an exceptionally popular new method of crowdfunding, incidents such as the recent Giza scam have tainted the reputation of ICOs. Countries such as China have banned ICOs altogether, while regulatory bodies worldwide have repeatedly issued warnings, urging investors to be cautious when it comes to putting money into ICOs.