The Ramifications of Banning Blockchain Ads
The true potential of blockchain is being built as we speak. However, blockchain currently has some serious issues regarding marketing and promotion. While that’s happening, some big tech companies are now appearing to pull out of blockchain altogether, or at least advertising for the industry.
It’s been reported that Facebook, Twitter, and Google are banning all ads or have banned ads related to ICO’s or cryptocurrencies. All three have come out with statements which, to varying degrees, rebuke the technology. Facebook calls these ads “misleading or deceptive promotional practices”, while Google’s Scott Spencer says the company has “seen enough consumer harm or potential for consumer harm…to approach [the space] with extreme caution”, and Twitter says “this type of content is often associated with deception and fraud.” The rhetoric in these statements is problematic. It supposes guilt for an entire industry, and these companies have the power to shift the opinions of consumers who may follow the blockchain industry at the periphery but not closely.
Blockchain companies are currently being squeezed from all corners of the marketing world. They try to buy ad space in places like Cointelegraph who want 10’s of thousands of dollars for 1 ad that will run for a few days. Attempting to combat that, small start-ups (like MIMIR) went to Facebook and Twitter for cheaper ad space. With those companies closing off their platforms along with the cost of purchasing ad space, small companies who have yet to be funded will struggle or outright fail to get any buzz out about their products. Teams with potentially world-changing ideas are being blocked out of their own industry.
So what motivates these companies to have such stances, especially when companies like Microsoft and IBM are getting involved in the space?
One theory comes down to the blockchain’s essential nature. Blockchain, the technology that drives the cryptocurrency space, is like a co-op. It’s ran and regulated by those who use the system. Along with blockchain, there is a rising idea called Web 3.0. In Web 3.0, users pay for the services they interact with instead of selling their identities to get access to those services. That could be problematic for companies like Twitter and Facebook that have built their business model on selling personal information of their users to continue operation.
Since these statements released by these big companies, the Russian Association of Cryptocurrency and Blockchain (RACIB), the Korea Venture Business Associations, and LCBT, a Chinese association of crypto investors, have come together to create a fund to support the lawsuit they have filed against Google, Facebook and Twitter. Yury Pripachkin, the President of RACIB stated, “We believe that this is a use of the monopoly position of these [three] companies, which have entered into a cartel agreement with each other in order to manipulate the market. The ban from these organizations has led to a significant drop in the market in recent months.” There are many in the space who believe there is a direct correlation between these statements and people backing out of the market, making prices drop rapidly. It has yet to be determined, but some believe these companies are deliberately trying to manipulate the market. Yury continued to say, “We believe that if it turns out that the shareholders or managers of these companies own crypto wallets which they use for personal gain, using the position of their companies, they are subject to prosecution.” Some might say that’s paranoia or a conspiracy theory, but this wouldn’t be the first time we are seeing someone deliberately make statements or claims just to drive a market.
As it stands, Twitter and Facebook are more vulnerable to losing relevance as blockchain technology, such as Akasha, is created and becoming more easily accessible. Google has less to worry about. Disrupting Google is disrupting a company who has managed to turn themselves into a verb. They originated with the motto of “Don’t be Evil” so it is understandable that they may be cautious in the space and worry about bad apples trying to take advantage of people. This is admirable. But by blocking everyone out, it hurts the companies trying to do blockchain the “right” way because they can’t get the word out. Whereas, the shadiest companies get the headlines because the scandals and sale prices drive more clicks than the companies who are innovating in the space. These companies get all the press for the least amount of work.
Companies pop up with little more than an idea (sometimes not even that) and take money from investors without any promise or plan going forward. People threw money at fake companies with fake teams (including one using a photo of Ryan Gosling), many without even a white-paper on their sites. The majority of the coverage, outside of the industry at least, is focused on how much these ICO’s raise before delivering a product or even a plan for a product. When these companies fail (or disappear), the rest are left trying to build their companies with a tainted image. Making matters worse, some scams are not always easy to spot, even with thorough research. Companies appear as legitimate and profitable as possible to take your money. That’s their whole purpose: to market themselves. They have money behind them to better take yours. Unfortunately, the good guys are asking for money too, to help get their products into the hands of more people. They’re just going about the ask in a different way.
Those who are working to improve blockchain and make it accessible to everyone are not only transparent with their customers, but they aim to have working products and documentation before taking anyone’s money. Now, that’s not to suggest a full suite of technology right out of the gate, but a working alpha or beta show potential customers this is more than just a good idea. It hopefully also shows that these companies don’t plan to disappear any time soon. The companies trying to make blockchain succeed in the long term want to earn the trust of the consumer and help facilitate that consumer’s access to the blockchain.
Companies like Airswap, Golem, Aragon or the company behind this post you’re reading, MIMIR Blockchain Solutions, are working hard to change the industry image.
We are currently building the MIMIR B2i (Blockchain to internet) Bridge. While developing this tech, we wanted to create a process other companies could use as a base standard when going to token sale. Companies should have more to offer investors than just an idea or a white-paper. This can be done by creating an alpha version of your software for testing, or even developing a proof of concept. Companies need to be more transparent with their users/investors. For example, they should make repositories on GitHub public while developers use and test the software. Or create multiple avenues for people to reach out with questions or concerns as well as have FAQ’s on the sites to aid users with common issues. If you can afford it, work with a team of lawyers who can assist you to make sure you are not violating any SEC laws as a precaution.
If more blockchain companies follow similar ethical standards, the validity of this technology will be proven to consumers. Those of us working to improve not only the industry’s image but the tech itself, will take on the challenge of righting the ship. It won’t be easy, however. We need those who are serious (even those only starting to become serious) about this technology to assist in this task, regardless of their current or intended level of interaction with the blockchain ecosystem.
For those new to the space, understanding what this technology is capable of and what you’re investing in will require some time in learning about the blockchain. As a former educator, I’m a firm believer that any information you need is at your fingertips. You just have to be willing to put in the effort to find what you’re looking for and take the time to absorb what you’ve found.
If you want to dip your toe into the space but don’t want to research, stick to the exchanges such as Coinbase. Don’t invest in an ICO without research and don’t buy tokens without research. Be responsible, this is an investment, this is a risk. Even with plenty of research into potential investments, there’s still no guarantee even the most legitimate companies will succeed. Use your best judgment. If it seems too good to be real, it probably is. If it seems a little too far fetched to be true, it probably is. If they don’t have a product, or even a plan for a product, they potentially never will.
As Newsweek put it, “the revolution is incubating.” It’s our goal to make sure it’s a revolution for good and not one for evil. It’s your job to be responsible and know what you’re investing in. It’s our job to provide a product worthy of that investment. Together, this just might work. At MIMIR, we want to set the standards for the community, both in terms of tech and customer relationships. Now, if only we could advertise our products.
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