Cryptocurrencies were on roll in 2017 and over $5 billion was raised through Initial Coin Offerings or ICOs. And they hit this year running with topping that bar in just the first quarter. But the industry may find it difficult to keep pace with these numbers in the wake of the recent ban on ICO ads announced by various social media platforms. While China and Korea have already banned ICOs, regulators across several other countries are looking to curb the growing menace of fraudsters raising funds through ICOs.
But does this mean the end of ICOs? No, this actually means that fraudulent players are likely to be weeded out and only genuine projects will come up with ICOs and market them through ad networks like adexchain.com, which are dedicated to blockchain-based projects. And genuine players are unlikely to be impacted by this ban, since they can find investors for their projects through blockchain-based forums and groups.
Let us find out more about how the industry is dealing with the ICO ad ban by various social media networks.
ICO Marketing: New Options
Social media networks have been a key part of ICO marketing strategies of projects looking to raise funds through crowd sales so far. But the recent ban by Facebook, Google and other social media platforms related to cryptocurrencies is likely to have a significant impact on such marketing. The ban is likely to reduce cryptocurrency visibility, since the three top platforms of Google, Twitter and Facebook commanded 65% share of the online advertising market in 2017.
The ban is largely a result of the large-scale advertising by scam operators, who resorted to ICOs without having sound projects or issued tokens that had no or very low values. And these social media giants do not want to get associated with dubious projects and face legal issues at a later stage. The justification for the blanket ban is the difficulty in segregating the legitimate from the fraudsters.
Unfortunately, the ban could restrict the marketing abilities of genuine or legitimate crypto projects and thus stifle future innovation, unless the players find new ways to market their projects and ICOs.
One solution could be to develop blockchain-specific platforms that can be used to showcase the merits of the various ICOs being launched. But the ban also means that ICOs have to be more creative and find new ways of conveying the strength of their projects. Another way in which ICOs can compensate for the ban is by getting endorsements from influential players in the blockchain field. This could be a major way of influencing ICO marketing in 2018.
And last, but most important, is the fact that the big money raised via ICOs is largely relation-based and genuine issuers should not find it difficult to find investors willing to invest. Small projects may, however, suffer to a certain extent. On the whole, the ban on crypto ads may actually help in safeguarding investors against fraudulent players, while dissuading the ones with half baked projects.