Facebook, the third most-visited website across the globe, will surprisingly once again permit cryptocurrency adverts.
The advertisers will now be required to successfully obtain “written permission” from Facebook, meaning that the assortment of what the users enjoy will not broaden.
New Terms for Crypto Ads
It is now official, as revealed in a company blog post, that potential advertisers will have to make a formal submission to Facebook aimed at presenting their case. Besides this submission, they will also need to submit any other licenses they have acquired, additional public background about their venture, as well as whether or not they are traded on public stock exchanges.
Even so, ICO (initial Coin Offering) advertisements remain forbidden as the social media giant still holds a significant emphasis on protection of users against misleading and deceiving ads.
News outlets also within the industry will equally need to fill out similar applications to qualify for promoting the adverts.
Ban Supposedly Due to Fear of Scams
Earlier this year, Facebook set up a maximum blockade on these types of advertisements, subsequently outlining that their primary objective was to guarantee smooth user experience on their site devoid of deception or scams.
On the same account, Bitcoin had dropped from its original $20,000 high in late-2017 to below $10,000 early this year. Currently, the value is just slightly over $6,000 with other currencies also having reduced their pace, at least for now.
In April, Facebook CEO Mark Zuckerberg faced questioning for nearly 10 hours from the U.S. Congress regarding potential regulatory action being established toward Facebook.
This was prompted primarily by a recent significant occurrence where Cambridge Analytica accessed the personal details of numerous users across the globe. Cambridge Analytica is a data analysis and consulting company believed to have interfered with the 2016 presidential election in the U.S.
This firm is facing accusations of gathering personal information from about 87 million users which included “likes,” names and other personal data.
Later, Zuckerberg publicly apologized for this occurrence, although his company has since implemented restrictions on the site in efforts to prevent such an incident from repeating itself.
Moreover, it was also the cause of the sharp decline in the stock price of Facebook, with their overall market capitalization plummeting by about $50 billion. Currently, the total market value of Facebook is $576 billion in comparison to the whole cryptocurrency market, which is currently resting at just below $245 billion.
And with the federal scrutiny of digital currencies now in full force, not to mention the potential government action taking the shape of regulations and oversight, it is improbable that Facebook will risk their operations with misleading advertising, which could mean possible severe consequences.
Facebook Planning a Crypto Launch?
Facebook has reportedly said it plans to establish its own cryptocurrency. This is after having created a blockchain group set out to explore this prospect. This exclusive team is under the leadership of David Marcus, the former president of PayPal.
Aside from facilitating payments, they also said they hope to make use of blockchain in aiding user identity verification together with establishing advertisement deals.
News about Facebook’s planned crypto expansion first surfaced in January just before they implemented their initial ban on cryptocurrency-related advertisements.
With the large following Facebook has, (2 billion registered users), this means that whichever cryptocurrency they introduce has the potential to outdo all other standard currency regarding reach.
Facebook’s coin would have significantly broader scope compared to Bitcoin or all other digital coins currently active in the market, while also functioning as a standard currency as opposed to just speculative investment or value storage.
And if other platforms such as Twitter and Google launched their own coins as well, it could be a big deal considering the size of the user base.
In a post he wrote in January, Zuckerberg remarked that significant technological trends such as cryptocurrency and encryption reacquire power from centralized systems and give it back to the people.
In his concluding statement, Zuckerberg added that he intends to go more in-depth with such technologies to discover how they can best find use through Facebook’s platform.