Twitter will make it more difficult for fraudsters to conduct deceptive activities by blocking cryptocurrency ads on its platform. The clampdown will specifically target advertising of initial coin offerings (ICOs), token sales, and crypto wallet services. Additionally, the ban also covers crypto-exchanges, though it is expected to be slightly less rigid compared to the restriction for the other crypto ad. categories
ICOs, in particular, are used by startups to raise funds for a new cryptocurrency without having to go through the rigorous process of capital-raising required by venture capitalists or financial institutions. Such offerings can also be attractive for developers looking to raise money quickly as they cut out intermediary parties, potentially slashing the time to launch compared to traditional means of funding.
The ban comes shortly after Twitter CEO, Jack Dorsey, said that he sees bitcoin as the future single global currency in 10 years time. It also follows similar action taken by other tech giants against crypto ads. Facebook started a ban on ads for cryptocurrencies, ICOs, and binary options in January, describing these practices as deceptive methods of promotion. Earlier this month, Google also announced that it will change the types of ads that will be allowed on its network as part of a broader crackdown on cryptocurrencies.