Why have Google and Facebook brought back cryptocurrency ads?
The appearance of Coinbase ads in Google was met with the delight of the cryptocommunity. The majority of people perceive this as a symptom of thaw and a sign of lifting the ban on cryptocurrency and ICO advertising in the Google search engine. What is the reason for the cancellation of this ban?
Until now Google has not made any official statements, so some sceptics consider that the stock exchange ads could have appeared there by mistake. Although the assumption is rather strange, taking into account that we are talking of a company like Google.
The first step towards cryptocurrency advertising was made by Mark Zuckerberg. Several days ago the advertisements of virtual money appeared in the popular social network again. It is remarkable that Facebook was the first platform which forbade the advertising of cryptocurrencies at the beginning of 2018. This example was later followed by Google, Twitter, Reddit and other platforms.
The ban of cryptocurrency ads
Many opinions were expressed about what served as the main reason for this ban. The assumption that Facebook was going to launch its own cryptocurrency was one of the most popular conspiracy theories, and there were rumours about Google that the company was going to introduce blockchain in its cloud service and had been making developments in this sphere for a long time already. An interesting idea, that Google was going to issue its cryptocurrency and therefore banned ICO advertising, was expressed by the CEO to the investment company Blackmore Group, Phillip Nunn.
However, we shouldn’t forget that the considerable volume of scam and swindlers collecting money under the pretext of another ICO, from whom the companies tried to protect the users, served as the official reason of the interdiction.
It is remarkable, by the way, that Facebook decided to ban crypto ads after FBI warnings.
There is one more point of view, that Facebook, Twitter and Google could have treated the blockchain fever with caution because of the fears for their own monopoly. The appearance of a blockchain competitor for the cloud service of Google could have seemed to be a genuine threat, given how quickly blockchain startups spring up and raise money during ICOs.
This makes the latest statement of the company, that Google will present its cloud service for developments on blockchain, sound even more interesting.
Influence on the market
The ban on ICO advertising has seriously affected the cryptocurrency market, the blockchain fever which was at its peak in the summer of 2017 has gradually come down. The number of projects to successfully pass the ICO stage in 2018 has been reduced, although the volume of raised funds, at least in the first quarter of 2018, on the contrary, has experienced some growth thanks to large projects like Telegram.
Therefore it is quite possible to understand the rapture of the cryptocommunity in connection with the removal of this ban. It is expected to become a stimulus for the market’s growth and, probably, a new ICO boom.
The British newspaper Independent believes that Facebook is looking into the purchase of the Coinbase stock exchange, which allegedly became the principal cause of the softening of the social network’s advertising policy.
In my opinion, the reason for lifting the ban on cryptocurrency advertising in simple profit. An essential part of income which Google and Facebook receive is comes from selling advertisements. One can imagine what profit was brought to the search engine by ICO projects at the height of the pump. A few months which have passed since the moment the ban was introduced have been quite enough for Google and Facebook to evaluate the losses and make the decision to reintroduce ICO advertising. Probably, it is true that the companies will be more serious now approaching advertisers and more careful checking projects for scam. Time will tell.
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