Crypto Community Speculates on Reason Behind Facebook’s Lifting of Ban on Crypto Ads

In January 2018, Facebook announced a blanket ban on all forms of ads about cryptocurrency and initial coin offerings (ICO). The announcement set a precedent among other social media sites like Twitter, Google, and Snapchat, which also imposed restrictions of their own for ICOs and virtual currency promotions.

However, on June 26, Facebook wrote in a blog post that it has lifted the ban on cryptocurrency advertisements while continuing to institute stringent restrictions on ICOs. While some crypto enthusiasts are delighted with the newly revised policy, others started speculating on the reasons why the social media giant backpedaled on its former decision, Cointelegraph reported.

One of the rumors circulating in the industry is that Facebook’s recent action can be attributed to the possibility of the company wanting to tap into the billion-dollar crypto market since the site’s popularity has declined among users following the privacy scandal it found itself in. Because of this, the social networking service will see a decrease in shares of 81.5 percent by 2021, according to the prediction of research firm eMarketer.

Moreover, the research firm said that U.S. Facebook users aged 11 and younger will decline by 9.3 percent over the year. Meanwhile, users between 12 and 17 years of age and 18 and 24 years of age will decrease by 5.6 percent and 5.8 percent, respectively.

Another rumor surrounding the lifting of the moratorium on cryptocurrency is that Facebook itself plans to release its own in-house virtual token. The whispers started when the company’s vice president for the Messenger app, David Marcus, said in a post that he is planning to form a group that will analyze the best way to take advantage of blockchain for Facebook application.

Other rumors are saying that Facebook plans to acquire Coinbase, the biggest crypto exchange by trade volume operating in the U.S. The speculation stems from the fact that Marcus himself is a member of Coinbase’s board of directors.

Of course, all of these are mere speculations and what exactly Facebook is planning remains unknown to the public at the moment. For now, companies wanting to place an ad on the social media platform will need to submit an application, with the request subject for review by the social networking site.