Crypto backlash1 min read . Updated: 15 Mar 2018, 11:57 PM IST
In a market that doesn't have high standards of financial probity, financial products should not be sold through Instagram ads
Google has now joined Facebook in banning cryptocurrency advertisements on Google’s ad platform. This must be seen in the context of the past year or so.
Cryptocurrencies captured the public’s attention in 2017 with skyrocketing prices, which led to thousands of people investing in an industry that they did not fully understand. This ignorance, coupled with the fear of missing out, was a perfect opportunity for scamsters to invent cryptocurrencies that promised high financial return. Facebook and Google’s advertising algorithms contributed to the phenomenon by aiding them with targeted advertisements.
Now, the cryptocurrency market is cooling. Regulators and stakeholders are beginning to tighten the screws in a bid to separate the wheat from the chaff. Google’s move aims at preserving consumer trust.
This is a positive development. In a market that doesn’t have high standards of financial probity, financial products should not be sold through Instagram ads. At the same time, it should be borne in mind that all cryptocurrencies are not inherently Ponzi schemes.