Crypto Ad Bans: Weak Attempts to Stop a Tsunami

Whenever a force of nature is released, it can create havoc. As humans, we can attempt to mitigate the damages, but there isn’t a full-proof way to stop it. New technological changes like cryptocurrencies and blockchains can work in similar ways.

Initial Coin Offerings (ICOs), crypto-mining and blockchain applications have created a plethora of business opportunities. Investors are willing to support the dreams of the new breed of entrepreneurs who use the power of blockchains to create wealth. Initially, these businesses grew through word of mouth. But the astronomical growth of bitcoin and altcoins have given rise to keen public interest. The social media platforms like Facebook, Google, Twitter, Reddit and more has helped these interested group into the crypto-world

However, beginning of this year, things have started to change. First, Facebook told users that it will not allow crypto-related ads on its network. Soon Google, Twitter, MailChimp, and others followed. Here are some of those stories.

Facebook: At the end of January, Facebook declared that it was going to stop all forms of advertising related to cryptocurrencies. Facebook cited “misleading and deceptive promotional practices” as a reason for the move. The mandate has a broad scope. It means even legitimate businesses will be unable to use Facebook for promotional materials. It’s notable that Facebook’s board of directors consist of Marc Andreessen and Peter Thiel, both of whom are supporters of cryptocurrencies.

Google: Google declared its intention to ban crypto-related ads in March. Its new restricted financial product policy will go into effect from June. The policies also will affect YouTube and third-party advertisers. Google’s ban extends to initial coin offerings (ICOs), exchanges, wallets and even crypto trading advice.

Twitter: At the end of March, Twitter declared that it was also going to follow the path of Facebook and Google. Twitter’s new policy will apply to initial coin offering and exchanges. However, Twitter’s CEO Jack Dorsey is a big supporter of blockchain-technology and cryptocurrencies. So Twitter’s ban move came as a surprise.

MailChimp: The email marketing platform has also decided to introduce a ban on cryptocurrency content. Businesses use MailChimp to send campaigns to hundreds and thousands of users. So the ban will have effect affect on their main business.

LinkedIn: The social media platform for professionals has also decided to remove support for cryptocurrency advertisement. However, its owner Microsoft is still allowing cryptocurrency related ads.

SnapChat: The social media app has been implementing policies since February to ban ICO advertisements. It’s still allowing other cryptocurrency related ads.

Implications of Crypto Ad Ban

Even with the assault from the social media landscape, cryptocurrencies are still moving forward. The decentralized blockchain technologies and the passionate community around them are keeping the industry alive. However, there are some important implications of the social media bans. Here are some issues you should be concerned about as a blockchain business owner:

Harder to Build Pre-ICO Community: Social media provided blockchain entrepreneurs an opportunity to easily connect with people who might be potential investors or customers. With that opportunity gone, it’s going to be harder for startups to form new communities. Businesses will have to depend on word of mouth to bring people together.

Depend More On Communication Channels: Facebook, Twitter and LinkedIn provided crypto businesses ways to keep in constant touch with their user base. But with those channels closed down, businesses have to revert to old-school methods of communication. They might even have to use PR firms to get the word out. Also, remember that word of mouth is still a valid way of doing business.

Better ICO Possibilities: Facebook, Twitter and other social media channels created opportunities for abuse of the system. Shady businesses were able to raise large sums of money based on simple ads. With the shady businesses disappearing from the scene, more legitimate companies are going to have a voice in the space. It will mean both higher quality companies and higher quality clients.

Developing a Strategy

Businesses have to weigh their options and figure out the next move. Whether you decide to build a stronger communication channel or depend on a PR firm, you will need to decide how to approach the situation.

At BitClave, instead of planning the future, we are trying to create it. The crypto ban crisis proves that centralized models can take over anytime they want. In order to control our information and our privacy, we need a decentralized network.

BitClave is a decentralized search engine. It uses blockchain to store information. Businesses and users can interact with each other directly without a middleman. Also, both parties can exchange tokens with each. The tokens create a value system.

With the help of BitClave, users will be free from the shackles of the centralized social media giants. Today there aren’t that many decentralized options available. But expect to see more solutions like BitClave in the future.

Evils of Centralized Systems

The crypto ad ban has shown us the folly of using a centralized model for our information exchange. A truly peer-to-peer network built on a trustworthy community can create a more robust system for everyone. A peer-to-peer network is much better at self-policing. Facebook and YouTube’s inability to monitor fake and malicious information further illustrates the problem of centralized systems.

Next Steps

If you are in the blockchain-based application development business like us, try to implement more robust decentralized applications. These applications can take the internet to the next level. It will promote a more collaborative environment and make the internet a better place.

On the other hand, if you are an end-user, try to seek out systems like BitClave. It can help you regain control of your data. You wouldn’t be dependent on central authorities.

The world of cryptocurrencies and blockchains is changing fast. Naturally, there will be chaos and confusion. Scammers are taking advantage of the chaos. But at the same time, a lot of companies are working diligently to create positive change in the blockchain space. The crypto ad ban will hurt those companies temporarily. Hopefully, in the long-run, the good companies will survive.