Twitter Inc. is joining
“Advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally,” a Twitter spokesperson said in an emailed statement Monday. “We know that this type of content is often associated with deception and fraud, both organic and paid, and are proactively implementing a number of signals to prevent these types of accounts from engaging with others in a deceptive manner.”
The decision comes after
Initial coin offering funding is soaring even as regulators tighten grasp
The U.S. Securities and Exchange Commission sent a number of subpoenas earlier this month to ICO teams it suspects are breaking securities regulations, and it has warned since July that some of the offerings may be breaking securities regulations. Twitter said on March 7 that it was implementing measures to prevent crypto scams.
Cryptocurrency exchanges and wallet services ads will be limited to those that are provided by a public company listed on major stock markets, and in Japan, these will be limited to crypto exchanges regulated by the nation’s Financial Services Agency, the Twitter spokesperson said.
Crypto ad bans on major social-media platforms has weighed on the cryptocurrency market. Bitcoin is sliding 6 percent today, approaching the $8,000 level, and is down more than 50 percent from an all time high of almost $20,000 in December.
Paid search sends less than one percent of traffic to cryptocurrency exchange sites, so the effect of crypto ad bans may be limited, according to research by website SimilarWeb, published Monday.
— With assistance by Selina Wang