Bitcoin experienced a 7% decrease in price after Twitter, a major social media platform, announced an immediate ban on cryptocurrency advertisements.
Twitter Ad Ban
A spokesperson from Twitter stated to CNBC, “We are committed to ensuring the safety of the Twitter community. As such, we have added a new policy for Twitter ads relating to cryptocurrency – under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
However, this decision has not been received positively. In fact, Bitcoin’s value plummeted under $8,000 and traded as low as $7,886, according to market data from Coindesk. Timothy Tam, co-founder of CoinFi, a crypto-market intelligence site, predicted:
“Today’s news on Twitter’s ban is likely a significant contributor to the steep sell-off – as new retail investors enter cryptocurrency, a large portion of them are trading on raw emotion.”
Twitter’s announcement follows similar decisions by technology giants, such as Google and Facebook, to restrict fraudulent initial coin offerings.
Live Chart – Bitcoin
Facebook And Google
In January, Bitcoin’s value decreased by 12% after Facebook implemented a ban on all cryptocurrency ads, intending to remove “financial products and services frequently associated with misleading or deceptive promotional practices.” Additionally, Google updated its financial services policy to restrict cryptocurrency advertising and related content starting in June.
Furthermore, regulatory bodies and finance ministers from various countries are considering proposals on how to govern crypto assets, causing uncertainty within the sector.
SEC Demand Transparency
The US Securities and Exchange Commission (SEC) issued numerous subpoenas this month to ensure increased regulation of ICO fundraising processes.