Snapchat joins social media networks banning ICO ads

Snapchat joins social media networks banning ICO ads

Getting your Trinity Audio player ready...

Social media platforms have been going after cryptocurrency advertisements, particularly those that promote initial coin offerings (ICOs). The latest move comes from Snap Inc., which this week announced that it has banned all ICO-related ads in the Snapchat app.

According to Coindesk, a representative from Snap Inc. confirmed the ICO ad ban on the social media app. However, there is no information whether or not Snap is planning to extend the ban on other crypto activities. Cheddar reported that Snapchat’s parent company has been restricting advertisements that promote cryptocurrency token sales since February, although the ban doesn’t apply to other types of cryptocurrency ads.

The move by Snapchat to ban ICO-related ads will greatly affect companies that rely on social media to advertise their tokens to the public. Many companies raised billions of dollars though ICOs in 2017. Snapchat has joined other social media giants like Facebook and Google in stopping these ICOs from advertising on social media.

Facebook imposed the ban on cryptocurrency and ICOs and only allowed educational ads relating to crypto market.

Last week, Google announced that it will also ban all cryptocurrency related advertisements, starting from June. This will be implemented also in Google additional platforms like YouTube. According to a statement made by Google’s director, Scott Spencer, Google will impose the ban on crypto-related ads as a precautionary measure to protect the consumers from potential harm. A recent survey by the North American Securities Administrator Association, found that millennials were the most at risk of becoming victims of frauds from tech-related products.

Sky News reported that Twitter is also planning to impose this ban, though it’s not officially communicated. The ban by Twitter is expected to affect cryptocurrency wallets, exchanges, and ICOs, with few exceptions.

The recent activities to block out cryptocurrency ads on social media comes stern warnings from U.S. Security and Exchange Commission on ICOs. These warnings suggest that most ICO tokens could be considered unregistered securities.

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.