This year began with news of Facebook banning all ads promoting cryptocurrencies, which restricted even legitimate businesses from promoting cryptos and ICOs. Google followed suit, shutting its doors to ads related to cryptos, crypto wallets, ICOs and even crypto trading advice. The search giant cited that its aim was to protect visitors from “unregulated or speculative financial products”. There have been crackdowns by Twitter, Baidu and Weibo. In late March, MailChimp banned crypto marketing via its email and newsletter platform.
Does this spell a bleak future for blockchain marketing? On the contrary, the recent developments have brightened the future. Here’s how.
While the ICO and crypto market boom has driven innovation, changing our world for the better in innumerable ways, it has also attracted novice investors, speculators and scammers, all looking to make a quick buck. Even if you’re able to spot scams and steer clear, the market is wrought with wild price fluctuations.
We tend to pay more attention to bad news, right? So, news of scams and plummeting Bitcoin prices grabs attention, diverting our focus away from the many benefits of this revolutionary industry. If the market remains unregulated, bad news and scepticism will prevail.
The crypto market always seems to react negatively to regulation-related news, pushing down the price of Bitcoin and other cryptos. But, a well-designed and stringent regulatory framework will separate the wheat from the chaff. A crackdown on fraudulent activities and accelerated growth of regulated brokers (following best practices for protecting investor funds) would attract sophisticated investors, traders with lower risk appetites and those with longer-term investment horizons.
A tight regulatory framework would also inspire blockchain start-ups to become more thorough in strengthening their concepts and proving market viability before launching an ICO.
Moreover, with a regulatory framework in place, crypto activities using blockchain will break into the mainstream. Even folks who are not tech savvy will be using blockchain in their daily activities.
It’s also important to note here that blockchain has always been the blue-eyed boy. While cryptos are feeling the heat from government restrictions and ad bans, blockchain innovation is being encouraged. Governments and big NGOs like the United Nations are investing huge sums of money in promoting applications of blockchain technology to make their processes more efficient and transparent.
And, regulators are beginning to see the huge potential of blockchain and ICOs. At a recent conference held in Princeton University, chairman of the US SEC Jay Clayton reasoned that increased regulatory scrutiny would benefit the blockchain-based crypto industry by ensuring that the government “won’t eventually adopt such a hard-line stance that it will effectively choke off the budding industry.”
With the crypto market delivering meteoric growth last year, it isn’t surprising that 2018 is turning out to be a year of regulatory tightening. The need of the hour is to plan your marketing strategy with a longer-term vision. And, yes, there would be a great deal of uncertainty while governments grapple with cryptos and blockchain; and take a call on how to treat them. But, when the dust settles, the crypto and blockchain markets will emerge shining brighter than ever.