The price of a single bitcoin fell Monday morning after reports circulated that social media platform Twitter Inc. (TWTR) will ban cryptocurrency ads. At 10:32 UTC this morning, bitcoin’s price was $8,316.45. By 12:12 UTC, it had crashed to $8,049.63. Cryptocurrency markets reacted similarly to the news, shedding almost $10 billion of their value during the same time period. At 16:51 UTC, bitcoin’s price was $8,075.07, down 4.44% from its price 24 hours ago. Cryptocurrency markets were valued at $309.6 billion, down approximately 6% from their overall market cap 24 hours ago.
A Thumbs Up Despite The Ban
A piece on Sky News claims that Twitter’s ban, which will be implemented in two weeks, includes ads related to cryptocurrency wallets, initial coin offerings (ICOs), and token sales globally. Twitter joins two other Silicon Valley behemoths – Facebook Inc. (FB) and Alphabet Inc. subsidiary Google (GOOG) – in prohibiting ads related to cryptocurrencies on its site. Announcement of a ban on the latter’s platform kickstarted a recent swoon in the markets. (See also: Bitcoin Price Spirals Towards $8,000 After Google Bans Crypto Ads).
The ban on ads on Twitter is not entirely unexpected. There has been a surge in the number of crypto scammer accounts after an explosion in popularity for cryptocurrencies since last year. But the ban may not necessarily translate into a hostile stance. In an interview with the Sunday Times, CEO Jack Dorsey gave an enthusiastic vote of confidence to cryptocurrencies. He predicted that bitcoin would become a global currency within the next decade and would be used as a medium for daily transactions, such as buying coffee. While bitcoin is “slow and it’s costly, but as more and more people have it, those things go away,” he told the paper. (See also: Google Cryptocurrency Ad Ban Is Trouble For Twitter CEO Jack Dorsey)
Does The Ban Matter?
If site referral statistics are to be believed, the ban may not amount to much in cryptocurrency markets. Similarweb, a research and market intelligence site, analyzed referral data from Google and Facebook to cryptocurrency exchanges and found that paid search was responsible for less than 1% of overall traffic to cryptocurrency exchanges. Coinmarketcap.com, a site that tracks and aggregates crypto prices from multiple exchanges, was the top referrer and was responsible for over 8.5% of all traffic to crypto exchange sites. Prominent personalities from the cryptocurrency world often use Twitter to spread their message but its share of the overall advertising pie for initial coin offerings or ICOs and crypto-related products is unclear.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns 0.01 bitcoin.