The overheated ICO and cryptocurrency market suffered another blow yesterday. Facebook is now banning ads on its social media site that promote cryptocurrencies, particularly ICOs and binary options. The announcement came from a Facebook blog post written by Rob Leathern, Product Management Director.
“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency.”
User complaints of the ads are thought to have caused the decision. ICOs and binary option trading for cryptocurrencies are exceptionally risky and none of the ads represent this risk accurately inevitably leaving many retail investors holding the bags.
They even included some examples that may look familiar:
Bitcconnect suffered a collapse of 90% in a matter of hours last month and it was coins like this that were using Facebook advertising to drawn in retail traders. Which is why many have welcomed the news as they see it as an important step towards clearing up the ICO market that has become rife with malpractice and scam activity.
Advertising on sites like Facebook was one of the best ways for ICO scammers to get into the pockets of retail investors. Without out this option ICO evangelists hope this will sort the wheat from the chaff.
