By John P. Mello Jr.

Google announced Wednesday that it would stop broadcasting ads for crypto-currencies and related content in June.

The prohibition includes, among other things, initial offers of coins, cryptocurrency exchanges, cryptocurrency portfolios and cryptocurrency trading notices.

Google will also prevent aggregators and affiliates from showing ads for cryptocurrencies and related content.

Facebook adopted a similar policy earlier this year when it began banning advertisements for binary options, initial offerings and cryptocurrency, on the grounds that they were frequently associated with misleading or deceptive promotional practices .

As a result of Google’s announcement, bitcoin prices fell 9% to their lowest level in a month, or $ 8,252.39 US. They fell 12 percent when Facebook declared its ban.

Not for retail investors

Because of the complexity of cryptocurrency products, consumers may need to be protected from themselves, as Google and Facebook seem to be doing, suggested Josh Crandall, CEO of NetPop Research.

“It’s a very speculative space and people benefit,” he told the E-Commerce Times. “People are jumping into this game as if it was the game, so Google is trying to protect consumers.”

Speculative investments like cryptocurrencies are really not suitable for retail investors, said Daniele Bianchi, an assistant professor of finance at the
University of Warwick.

“The prohibition of Google will limit the exposure of the cryptocurrency market to retail investors, who may not have enough instruments to judge and assess the risk that they may have. they can expose by investing in cryptocurrency, “he told the E-Commerce Times.

ICO Confusion

A particularly complex virtual currency product is the initial offer of coins, or ICO, which is similar to the initial public offering of an action, or IPO, but instead of shares, a investor receives cryptocurrency tokens.

The ICOs have recently been subject to increased scrutiny by federal regulators because they think it’s too easy for investors to confuse ICOs with SOPs.

“People believe that they are getting stock, not a crypto token,” said Carolina Abenante, founder of
NYIAX, an advertising exchange.

Some ICOs are packaged to look like an IPO, she told the E-Commerce Times.

Although Google should not be a risk arbiter, it should pay attention to potential regulatory trends, Abenante has maintained. “At this point, they should restrict themselves because there is enough noise in the environment to say that there will be restrictions on it.”

Good PR Move

There may be other reasons than the protection of consumers who push Google’s ban on cryptocurrency ads.

“Google takes care of the health of online ads in general,” Crandall told Netpop.

“Although he can make money with these speculative cryptocurrency providers, he is more concerned about the long-term health of the online advertising ecosystem”, a- he noted.

“He does not want consumers to react negatively to all online advertising because they’ve been benefited by one for cryptocurrency,” Crandall said.

The ban is a smart public relations move by Google, noted John Carroll, professor of mass communication at Boston University.

“It’s smart to try to get out in front of any fraudulent advertising that might emerge in this category,” he told the E-Commerce Times.

Slippery reputation

Google can also react to growing suspicions among consumers about big tech companies, suggested Carroll.

“All the controversy swirling around technology companies has recently made the public increasingly skeptical about the effect these companies have had on society,” he said.

Signs of this were evident in a recent Harris Reputation Poll, noted Carroll, who showed that Google went from 8th to 28th in the rankings.

“This seems to be a preventative gesture to avoid the kind of advertising that could attach to Google and Facebook because of the unpredictability and unreliability of the cryptocurrency market,” he said. -he observes.

Minimal damage

Despite sharp declines in cryptocurrency prices following Google and Facebook announcements, it remains to be seen whether bans on ads will have a lasting impact on the virtual money market.

“I do not think it will hurt cryptocurrency,” said Jeffrey Carr, chief executive of Reel Holdings.

“They will find other ways to get the word out that do not require paid advertising, which is not necessarily the best way to run a marketing campaign anyway”, he told the E-Commerce Times.

The ban should also not have much impact on Google.

“Maybe Google will lose advertising revenue,” said Bianchi of Warwick, “but nothing that will affect Google’s profits or market share significantly.”


google to weed out ads cryptocurrency - Google to Weed Out Ads Cryptocurrency
John P. Mello Jr. was an ECT News Network reporter
since 2003. His areas of interest include cybersecurity, IT issues, privacy protection, ecommerce, social media, artificial intelligence, big data and large electronics. public. He has written and edited for numerous publications, including the Boston Business Journal
Boston Phoenix Megapixel.Net and Government
Security News
. Email John.

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