Facebook, the largest social media giant, made news after it announced that it would launch its own cryptocurrency, Facebook Coin. It was also rumoured that Facebook was looking out for VC firms to invest in their cryptocurrency project, with the targeted sum being “as much as $1 billion.”
The facebook statement read :
“Starting 5 June, we will update our Prohibited Financial Products and Services Policy to no longer allow ads promoting contracts for difference [CFDs], complex financial products that are often associated with predatory behaviour. These products, due to their complexity, often mislead people.”
Facebook had implemented the ban on cryptocurrency ads and promotional campaigns related to blockchains and ICOs back in January 2018. It was believed that the ban was to tackle concerns that users may get misled by fraudulent investments and spend their capital on initial coin offerings offered by unreliable cryptocurrency start-ups.
However, the announcement itself did not list the reason behind Facebook’s u-turn on such ads. Many speculate that the current development is in keeping with the release of their own virtual asset, motivating them to change their stance on ads regarding cryptocurrency and blockchain on social media.