Twitter bans cryptocurrency ads, Bitcoin falls below $8000

Bitcoin falls 7% to below $8,000 after Twitter announces ban on cryptocurrency ads from the website starting Tuesday

Mike Richardson
Read +
Follow Us

All ads related to initial coin offerings (ICOs), token sales, exchanges and wallet services - excluding public companies listed on major stock markets - will be removed from Twitter, according to the announcement. According to a post by CNBC, a spokesperson said the move is aimed at "ensuring the safety of the Twitter community.”

In a statement, the company said: “We have added a new policy for Twitter Ads relating to a cryptocurrency. Under this new policy, the advertisement of ICOs and token sales will be prohibited globally.

Twitter’s announcement follows similar bans by Google and Facebook to crack down on fraud in initial coin offerings.

Bitcoin falls 7% and was trading near $7,886 as of 3:04 p.m. ET, more than $600 lower than a day earlier, according to data from Coinbase. It's down more than 42 percent year to date after starting this year above $13,000. Similarly Ethereum is down at $468, and Ripple is down to $0.58.

Since Bitcoin reached a peak of almost $20,000 in mid-December at the height of the cryptocurrency frenzy, the digital currency has lost more than half of its value as investors weigh the future of the emerging space amid intensifying scrutiny from global regulators.

The digital currency dropped 12 percent in late January after Facebook, the world's second-largest online ad provider, said it would ban all ads that promote cryptocurrencies to prevent the spread of what it called "financial products and services frequently associated with misleading or deceptive promotional practices."

Google, the world's largest online ad provider, announced an update to its financial services policy earlier in March that will restrict advertising for "cryptocurrencies and related content" starting in June.

Jack Dorsey, Twitter & Square CEO, is a big believer in bitcoin. He told the Sunday Times newspaper this week he thinks bitcoin will become the single global currency within the next decade, "but it could go faster." Separately Mr Dorsey has previously acknowledged the proliferation of cryptocurrency scam accounts, pledging to crack down on users or bot accounts seeking cryptocurrencies from others.

Regulatory news has been another driver of price moves in 2018. Financial watchdogs have been vocal about potential risks in initial coin offerings, or digital coins released through fundraisers known as token sales.