Facebook has indicated that it is going to ban all advertisements that are related to cryptocurrencies. This is as a result of increased misleading advertisements that are being fronted by scammers on Facebook. To promote the integrity of its brand, Facebook is going to stop all cryptocurrency related advertisements.
The move is targeting Initial Coin Offerings that are frequently promoted on Facebook. The company has indicated that such adverts will no longer be promoted on facebook because they are usually misleading and deceptive. This is a big win for crypto community as it will weed out scammers who promote Initial Coin Offerings promising high returns and free tokens to buyers.
Most of the existing ICOs and cryptocurrencies which are listed on the coin market capital are all scams with no existing product or utility. These ICOs target new and misinformed crypto enthusiasts who are seeking to make quick returns. One of the latest scams is Bitconnect which reached an all time high of $463 and a market valuation of $2.5 billion. The token which was promoted on facebook promised to pay dividends to users who introduced new members. Bitconnect is an example of crypto ponzi scheme and a misleading advert that Facebook is trying to prevent.
Since most of the ICOs have no valuable or ready product, their adverts are usually misleading because they have nothing to back them up or to determine their value. Most of the cryptocurrencies have no utility and all they do is keep buyers hoping that the price will go up or a greater fool will buy the token or cryptocurrency at a higher price.
The large number of scammers in the crypto community is the reason why Facebook has disengaged from proving a platform for scammers to propagate their scam by banning all crypto related advertisements. Despite the crypto currency community being infiltrated by scammers, blockchain technology which is behind cryptocurrencies is a revolutionary technology that holds are lot of benefits to the world.
You can read more about cryptocurrencies here.