In January 2018, Facebook CEO Mark Zuckerberg revealed that he was closely scrutinizing digital money and decentralized technologies. While it is somehow believed that Bitcoin and cryptocurrency would change the world in a positive way, Zuckerberg shared that he was studying both the dark and bright sides of this technology.

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In fact, many economists and financial experts have warned about the dangers of digital money and ICOs. It was reported that approximately 78% of ICO’s were Identified Scams, ~4% Failed, ~3% had Gone Dead, and ~15% went on to trade on an exchange. In a nutshell, it cannot be denied that the scam-filled nature of cryptocurrency and ICOs are so widely known.

In that context, Facebook commented that cryptocurrency and ICO-related ads often referred to “deceptive and misleading advertising practices”. This is the reason why the largest social network decided to prohibit ads related to ICO, cryptocurrency and binary options trading. This policy is applicable on other Facebook platforms such as Instagram and Audience Network. However, it is considered to be quite vague in the context that Facebook is still struggling to distinguish what exactly a detective and misleading ads is.

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Currently, almost all nations have not issued any transparent legal framework for ICOs and cryptocurrency in general. Facebook is simply trying to protect its 2.7 billion users by prohibiting ads that say "Use your retirement funds to buy Bitcoin!" for example, or those that promote binary options trading, a risky derivative with an all-or-nothing payoff. This move is widely appreciated in the context of vulnerable crypto market. Right after this policy issuance, the digital currency market witnessed a series of "red flag". Specifically, Bitcoin, Ethereum, Ripple and Stellar all dropped significantly by 10%.