The ban will cover advertising of initial coin offerings (ICOs) – popular crowdfunding method used to raise cash by creating new coins – as well as token sales and crypto-wallet services, the San-Francisco-based firm told Reuters.
Ads for cryptocurrency exchanges will also be banned — with some limited exceptions.
However, exchanges won’t suffer from the ban too much as a report from SimilarWeb, a web traffic tracker, showed that less than 1 percent of traffic on exchange sites actually comes from paid ads. Most cryptocurrency exchange sites instead derive their traffic from coinmarketcap.com, which tracks market capitalization numbers, not from paid ads.
“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,” the company says. “Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally.”
Reuters first reported the new policy, which is set to go into effect this week.
Earlier this month, Twitter announced that it will crack down on accounts carrying out cryptocurrency-related scams.
It’s not surprising that Twitter would clamp down on these ads. A lot of initial coin offerings are speculative and dodgy, and in extreme circumstances are outright scams from fraudsters who spend contributors’ money on themselves. Tokens, wallets and exchanges often tend to be volatile, too.