After a careful review of its policies, Facebook has decided to allow the exhibition of specific crypto related ads from now on. Coinbase, the biggest cryptocurrency exchange in the United States got the first green light to promote itself on this social network.
Brian Armstrong, CEO of Coinbase, announced the decision in a tweet a few hours ago in which he expressed his pride and enthusiasm for being able to contribute to the massification of what he described as an “Open Financial system”:
With this move, Coinbase gains a significant advantage over its competitors. The possibility of reaching the userbase of over 2 billion users per month that Facebook manages, represents an incredible potential to expand the potential of this exchange.
It is also important to note that this decision comes at a perfect time as Coinbase is currently expanding its business. Previously, the Coinbase team had announced that they were studying the possibility of adding more cryptos to their database (a little scarce compared to other exchanges).
The Coinbase team is also working hard to renew its image. They announced changes within their board of directors and Gdax, their trading platform, was rebranded to Coinbase Pro.
In addition to the previous announcements, Coinbase is actively promoting its Coinbase Index Fund as well as the Coinbase Custody platform especially oriented to institutional investments.
A Good Move
Facebook’s decision is particularly important because it is a recognition of the legitimacy of cryptocurrencies as a genuine means of financial intermediation, and although there may be scams, the benefit to society is far greater than the risks associated with unlawful practices.
Very probably, Coinbase will start to invest heavily in its Facebook advertisement campaigns, trying to take advantage of the privileged position in which it currently stands, with no competition whatsoever.
The decision to ban crypto-related ads was made a few months ago as part of a joint effort by several technology giants such as Facebook, Twitter, and Google to avoid the scams and illegal practices that were being promoted through these platforms.
It is not yet known whether Facebook will reopen the possibility of paying for crypto-related ads, but the decision regarding Coinbase is a step in the right direction. Probably, in case of a reconsideration, the controls to obtain a permit from Facebook will be careful enough to avoid scammy projects that defraud the users.