18


NEWS ANALYSIS


How Facebook is pushing the crypto market to a more regulated future


Crypto mania has been impossible to escape. Bitcoin news has flooded the web and many adverts have been consumed by people all around the world. A significant percentage of these adverts have ended up on Facebook – but not any more


CEO, BrokerNotes Marcus Taylor


T


his recently made the news: Mark Zuckerberg and his team have immediately halted all adverts for crypto-related businesses and binary options. The shift has sent shockwaves


through the market and has gathered support on both sides of the fence. Before we can weigh up whether Facebook’s decision was truly a good one, though, we need to establish why crypto advertisements are more popular on Facebook than anywhere else online.


There’s no doubt that Facebook has a big reach. At the last count, the social networking giant was closing in on two billion active users. However, the value in crypto companies using Facebook to target users becomes even clearer when you consider how the average trader falls into the social network’s core target demographic.


Eighteen- to 34-year-olds now represent over 65% of all online traders. In fact, the number of traders under the age of 34 has increased year-on- year since 2014, which is almost certainly a direct result of mainstream marketing targeted specifically towards people in this camp. Some 75% of crypto asset traders fall into this age bracket, too, confirming what we’ve all suspected for a while – the crypto market has found a particularly comfortable home with today’s younger trader audience.


It’s easy to see why and how Facebook has become a goldmine of opportunity for bolstering sign-ups and overall interest in ICOs. It’s an avenue for companies launching these new digital ventures to reach an audience that directly correlates with their target demographic. Facebook has within its considerable grasp a cross-section of users that are engaged with the crypto trend and an active interest in this type of investment. All things considered, then, does this mean banning ICO adverts on Facebook was a good idea? Absolutely.


Risk vs reward


Facebook has made a great decision. Being able to promote innovative products to millions at the push of a button is a good thing, but the sheer number of scams out there are a massive risk to inexperienced


traders who might merely be jumping on the bandwagon. And those risks outweigh the benefits of open and unrestricted advertising. After all, every con-artist targeting crypto traders raises questions over the general safety of crypto investments, so Facebook’s decision is helping to mature the market.


It’s also worth noting that the trigger cause behind Facebook’s ban was a series of user complaints about scams and misleading adverts, which suggests traders on the whole are wising up to the potential pitfalls associated with crypto investment. By limiting the means through which scammers can target those traders in the first place, Facebook is now part of the growing trend to move cryptocurrency away from being viewed as an unsafe, unstable asset.


Facebook has suggested it will allow legitimate crypto-based businesses to advertise again in the future. This, too, is a positive move for the market on the whole. Crypto assets are still largely unregulated, and the market is in a constant state of flux. Preventing companies in this space from advertising their products until more stability is added will protect both the market and consumers in the long run.


Playing the long game


Although Facebook’s decision does make it harder for legitimate ICOs or established crypto companies to raise awareness of their products, in the long term they’ll see far greater benefits from being part of a market that traders can fundamentally trust. And that’s got to be a good thing.


Yes, the move by Facebook was pretty drastic. However, the impact goes far beyond protecting its users from potential scammers looking to cash in on widespread crypto mania. For good or bad, Facebook has unparalleled global reach. In announcing this ban, it has helped consumers to wise up to the potential pitfalls of crypto investment and shown the market that regulation is needed to see long-term success. Although this kick into action has come in the unexpected form of Zuckerberg, the result is, on balance, positive for the crypto future.


www.ibsintelligence.com | © IBS Intelligence 2018


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52