Cryptocurrencies like Bitcoin, Litecoin and Ethereum, and initial coin offerings have all hit the mainstream, which has promptly resulted in a number of scams. In response to this, Facebook has taken a strict step to narrow down on scams that could negatively affect the common man. According to a blog post last night, Facebook issued the following policy related to its advertising:
Prohibited Financial Products and Services
"Ads must not promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or Cryptocurrency."
Facebook believes that a lot of scammers exist in the crypto space who can trick unsuspecting people into making unwise investments. A lot of cheap tactics like "pumping and dumping" are also carried out by these scammers, making some quick buck at the expense of innocent people's wallets. Facebook has also invited the community to help it curb these types of ads.
I'm not sure how much of a negative impact this development will have on the crypto markets, but noobies in the crypto space will most probably be affected the most. Mainstream news like this has the potential to generate a negative sentiment, which is especially unfortunate since the crypto markets are already weak.
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