Misleading Twitter Account bitcoin Banned Again
Earlier this year, Facebook banned bitcoin ads, but they are alive and well on Twitter.
Despite Facebook's prohibition, some Australian Twitter users have seen a steady flow of ads for initial money offerings (ICOs) and cryptocurrency exchanges.
The burgeoning world of digital currencies has caused an unfortunate reputation since Satoshi Nakamoto'south bitcoin emerged in 2009.
Facebook said it was shutting down ads that were, "often associated with misleading or deceptive promotional practices", including ICOs and cryptocurrency.
Ads that might say things similar:
In 2017, the Scamwatch website run by the Australian Contest and Consumer Committee (ACCC) received one,289 complaints related to bitcoin, specially investment scheme scams, with reported losses totalling $1,218,206.
Much like an initial public offering, an ICO is a way to raise money for a new business. Instead of shares, an ICO offers "tokens", which are typically bought using existing cryptocurrencies like bitcoin or ethereum.
For some, this is a way to avoid institutional investors, but other ICOs have made questionable claims or disappeared with user funds.
In September, the United states of america Securities and Substitution Commission accused the creator of a cryptocurrency backed past diamonds with defrauding investors, alleging it had no diamonds subsequently all.
In December, it charged the founder of the PlexCoin ICO with violating anti-fraud provisions by promising investors i,354 per cent profit in less than 29 days.
Who is advertising to Australians?
Many of the cryptocurrency projects advert to Australians on Twitter in contempo weeks appear to be strange.
Some are based in Asia, such as the South Korean cryptocurrency exchange Bithumb, or Singapore's blockchain-powered financial services platform QUOINE.
A representative from QUOINE told the ABC its ads are factual: "QUOINE … welcomes Facebook'southward policy to ban crypto ads that run into as scams to protect consumers."
Several of the other companies running these ads appear to be Eastern European.
One company, Dorado ICO, seems to be largely based in Lithuania, while Tranquillity Financial, which suggests its SERENITY tokens will exist used to pay for "transparent brokerage services", has Russian founders according to its website.
ICOs frequently brand significant claims virtually their production, both in their ads and on their websites.
Dorado, for example, says in its Twitter advertising that it is "the next Uber on blockchain".
The ICO claims to be built on an Eastern European food delivery company Foodout Group, and says it will apply blockchain engineering to allow "anyone to have anything delivered on-demand" by "local couriers, drones, robots".
The company has also made at to the lowest degree ane meaning alteration to its website while allowing investors to buy its ICO tokens.
One of its board members, Pedram Assadi — who was removed from the ICO website this week — was claimed in his site biography to be head of operations at Uber Eats in the Middle East. It also detailed that he worked "in executive positions" at companies similar IBM and Amazon.
IBM declined to comment about Mr Assadi's employment, but his LinkedIn profile claims that he worked in "Finance" at Amazon and as a business consultant at IBM. Neither appear to exist executive positions.
Amazon and Uber did not return request for comment.
Dorado also says it is backed by "first-tier institutional investors", including the venture uppercase company Gold Fish Fund.
Gilded Fish partner Jonas Karosas is too Dorado'south CEO and the founder of Foodout, according to the companies' corresponding websites.
Dorado has been approached for comment. Attempts to reach Mr Assadi were unsuccessful.
Should Twitter allow crypto-ads?
In Commonwealth of australia, Twitter permits the promotion of financial services, with some restrictions.
Twitter declined to annotate on specific questions about the cryptocurrency ads on its platform but a spokesperson pointed to its ad policies, which prohibit misleading or deceptive claims.
The social media visitor is said to exist developing a new policy for cryptocurrency ads.
Dr Michael Mehmet, a marketing lecturer at Charles Sturt Academy, said Facebook's bitcoin ban may have more to practise with its own reputational bug (amongst ongoing investigations into the Russia-US ad scandal) than bitcoin itself.
Twitter, on the other paw, has a smaller user base and may exist concerned with maintaining advertising revenue, Dr Mehmet suggested.
In February, the visitor appear its first-e'er profitable quarter — advert revenue grew ane per cent to $US644 million.
"There is no single reputation for Twitter. Dissimilar users volition perceive it from dissimilar perspectives," Dr Mehmet said.
The Australian Securities and Investments Commission (ASIC) has warned investors ICOs are "highly speculative investments" and many have turned out to exist scams.
ASIC spokesperson Gervase Greene said "a fair part" of the cryptocurrency environment is not regulated by ASIC, but the law is typically platform-agnostic.
"To indulge in misleading or deceptive comport, or attempt fraud or similar, volition be considered a breach of regulations, consumer police or perhaps criminal laws regardless of the media vehicle," he said.
Editor's note (ix/3/18): This article has been amended to add a comment from QUOINE.
Posted , updated
Source: https://www.abc.net.au/news/science/2018-03-02/facebook-banned-bitcoin-ads-twitter-hasnt/9493780
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