The price of Bitcoin took a beating on Monday, falling by roughly seven percent to below $8,000 following a prolonged period of regulatory uncertainty and advertising bans from major social media companies.
The cryptocurrency was trading at $7,958.29 at 20:43 GMT, more than $600 lower than just 24 hours earlier, according to data from CoinMarketCap.
Twitter on Monday became the third social media giant to ban cryptocurrency advertising, following similar decisions by Facebook and Google. The decision was reported on in previous weeks already, but only now officially announced by Twitter.
The move comes after increasing pressure on cryptocurrencies on part of global regulators. Arguably though, the biggest asset for the crypto community are the profiles of the industry’s leaders and their companies.
A number of discussions surrounding cryptocurrencies have been frequenting Twitter as a media. The website has been widely used alongside Reddit to popularize the crypto-movement. This is the real asset of Twitter that the community is using and the ban on advertising is unlikely to change that.
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ICOs Main Trigger
Reading into Twitter’s position, it appears that Initial Coin Offerings (ICOs) are the main trigger behind the move.
“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. Under this new policy, the advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally,” the company states.
The main source of worry for the crypto industry on Twitter however, have been fake accounts. Persons that are diligently creating fake profiles have been spamming popular crypto topics with promises of big returns.
Profiles of Tesla and SpaceX’s founder Elon Musk, John McAfee, and Ethereum co-founder Vitalik Buterin have frequently been cited.
The dark side of ‘crypto Twitter’
Bitcoin evangelists and ICO projects that are created with the sole purpose of burning cash have frequently been the source of misinformation. Hyping up cryptocurrencies and creating pump and dump schemes via online social media like Twitter and Telegram has been one of the main strategies that some individuals use to generate quick profits on the crypto market.
Twitter states that the new policy will be fully enforced within the next 30 days. All ICOs and token sales will be prohibited with the restriction exempting firms that are providing cryptocurrency exchange or wallets services to only listed public companies on major stock markets.