After Facebook banned advertising for ICOs, speculation has begun that other ad platforms will follow suit. The call is for the ICO industry to police itself, or face further ad backlash until it does.
|After Facebook, Will Global Ad Regulators Reject ICOs?|
While crypto startups and ICO issuers worry about social media platforms cutting their ads, they could be missing an even more intimidating threat – regulators.
Crypto entrepreneurs reeled late last month after Facebook announced it would be banning“misleading or deceptive” ads about financial products and services, including bitcoin and ICOs. These stakeholders saw a crucial advertising avenue dry up, but according to some, the drought isn’t over yet.
“The regulators will look at advertisements put out by the company. That’s always something they’re going to look at,” said Johanna R. Collins-Wood, an associate at Pepper Hamilton and member of the law firm’s blockchain group.
Others agreed and voiced concern about the industry where you never have to look too far to find suspect advertisements.
Indeed, crypto advertising is a immensely popular Wild West of sorts, where all token sales, legitimate or otherwise, are all vying for attention. And all the issuers and entrepreneurs in the space are still grappling with just what kinds of claims they can make in their marketing.