Twitter will join other major online media companies in banning advertisements for initial coin offerings for cryptocurrencies, Reuters reported Monday.
Initial coin offerings are unregulated ways for companies or entrepreneurs to raise money for a new project, similar to an initial public offering, except the people running the ICO offer a virtual currency instead of stock. It’s essentially a way of crowdfunding a startup or new project, and it’s become very popular in the last year or so.
Sometimes the “currency” or tokens the startup offers can only be used on a service or product the new company is offering. Investors usually don’t get a stake in the new company or project.
In addition to ICOs, Twitter’s new policy will also prohibit ads for crypto-wallet services. Those are secure platforms used to store, send and receive digital-only currencies.