Coin Prices Slip As Twitter Bans Crypto Ads

Bitcoin dropped below USD 8000 after Twitter joined Google and Facebook in forbidding crypto ads.

by Kalina Tekelieva
27 March • 2 min
In News

Twitter announced on Monday it will prohibit advertising of cryptocurrencies on its platform, sending the crypto market into the red.

The decision, which Sky News hinted about on March 18, was now made official in a statement emailed by Twitter to several media outlets. Under the new policy, no ads for initial coin offerings (ICOs) and token sales will be allowed on the social media platform globally.

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Advertisements for digital currency exchanges and wallet services will be blocked, too, unless they are provided by public firms listed on major stock exchange markets. In Japan, Twitter will only allow ads for crypto exchanges regulated by the official watchdog. 

The strategy will come into effect over the coming 30 days, Twitter revealed.

Safety measure

The firm explained that the ban on crypto-related adverts was aimed at ensuring the safety of its users.

“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,” a company spokesperson said.

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In an attempt to combat fraudulent practices, earlier this year Facebook and Google also decided to prohibit advertising related to virtual currencies. Snapchat followed suit and announced last week a ban on ICO ads on its app.

Market reaction

The news of the Twitter ban immediately hit the cryptocurrency market and, with only five exceptions, all coins in the top 100 list slid into the red. Bitcoin (BTC) dropped to below USD 8000 at the time of writing, down some 6% for the day. Ethereum (ETH) lost 10.4%, while Ripple (XRP) shed 7.9% from the previous day.

Similarly, the decision by Facebook and Google to ban cryptocurrency-related advertising put a pressure on coin prices - BTC dropped by nearly 9% on January 30 (upon Facebook’s announcement), and by over 10% on March 14 (when Google revealed its new policy).