The ban on cryptocurrency: the domino effect

Why do media make decisions for consumers?

“Google blocks certain cryptocurrency apps on Google Play, announces the ban on advertising, ICO and cryptocurrency, Despite the likeness of situations, the Corporations have different motivations,” experts say.

In the case of Google Play, Google would like to receive a revenue share from applications. Meanwhile, developers don’t want to share any of the benefits or don’t find a way to do it. Games developers had a similar situation even before the case with cryptocurrency. Google acts grossly and roughly, but this is a trait of a large corporation.

Experts don’t exclude that prohibitions can be related to the pressure from states on such sites. They want to limit the growth of blockchain projects while the industry has not yet been regulated. The cryptosphere is a new reality of life and therefore, defining outside elements is a typical reaction within the framework of the adaptation of society. Google is implementing the directives of the authorities to its detriment, experts say.

Also, one of the possible reasons why large sites refuse to advertise ICO may be the reluctance of the brand to be associated, even indirectly, with a possible scam. Everyone knows that the sizeable portion of the ICO is pure and simple scammers, who raise funds to make "brilliant idea" come true, and later they escape and leave investors behind. However, these two factors play a crucial role in decision-making about the cryptosphere: the pressure from states and the reluctance to tolerate the fact that someone doesn’t want to share profits.

Is it worth seeking justice?

Some market players have got ideas to apply for court protection. However, experts warn that such litigations are quite costly and challenging, while the consequences of such a trial are unknown.

"In particular, now you need to monitor the outcome of the litigations against Google corporation — the popular video hosting Youtube. On October 23, 2017, the University of Prager filed a lawsuit against the numerous illegal blocking of training videos by this video hosting (the authors of the video believe that their videos were repeatedly blocked illegally, as they corresponded to the rules of Google, but the corporation removed them). But even in case of their victory, it's hard to imagine that all participants in the cryptosphere will be able to afford to sue Google regularly. In fact, there is a rule that Google can block content drawing on users’ complaints. This feature allows you to block any content, regardless of whether there is any real violation in it, and a victory in court will not oblige Google to abandon such a mechanism,” experts say.

Who will suffer the most?

Such prohibitions can indirectly affect the rates of the cryptocurrencies, experts say. Their prices had been cut by 2-7%. However, there is no need to expect sharp fluctuations.

"The projects at the stage of pre-ICO and ICO will confront major challenges. After all, about 20-25% of the funds are collected through traffic on advertising platforms. At the same time, the most considerable traffic accrues to Google, Facebook, as advertising campaigns are conducted in an international format, and no more than 3-5% of all advertising traffic for an international campaign falls on Yandex.Direct," added the experts from ICO Rocket PR.

Infrastructure projects will suffer the most: decentralized exchanges, real news aggregators, educational materials — advertising on Google, Facebook, etc. is of vital importance for them.

What to do?

In view of recent developments, many developers ask themselves: "What to do with the project? I have invested money in it, and now I understand that traffic from Google won’t be received."  If ICO isn’t in high demand on the market today, then you shouldn’t launch it at all, experts advise. If there is an infrastructure project that logically should not fall under this ban, then you need to wait a bit and start active capitalization on other sources of traffic.

Experts approve that the characteristic of focusing the attention of the average crypto enthusiast is much higher than that of a person who browses through advertising on Google. Therefore, infrastructure projects should not suffer much, however, less successful will attract fewer funds.

Those companies that remain in the game and want to exist for a long time with a comprehensible and evolving product should think about their history and reputation, experts advise. Their budgets and efforts of companies should be focused on the creation of a considerable image of the ICO. And it will remind the launch of IPO —  and after all, there are no cases when an unnamed company could launch it. Therefore, crypto companies need to have the excellent reputation to start a successful ICO. The process will take more time, but the product of companies and their concept will become more evident.

Besides, experts believe that the market of advertising and marketing can respond in such a way that the effectiveness of existing tools will increase. The companies' money will “flow” into direct banner advertising on relevant sites, on channels in Wechat, Viber, and Telegram, they will still work on forums like Bitcointalk, with listings and traditional PR in the media.

If you have a star in the team — there is  no need to worry

Projects with super-famous advisers are not afraid of terrible restrictions for an advertising platform. There were examples when the required amount of $ 5-10 million was raised after the quotation or a successful post on Facebook or Instagram of the appropriate mentor of the project, experts comment.

Experts also advise to wait and see how the situation would evolve. Many specialists predict that in the nearest future the active players with high administrative resources and upper lobby power will enter the cryptomarket. When the crypto industry grows to significant sizes, and substantial infrastructure projects are concentrated in the hands of people who have a high credit of trust, such kind of problems will disappear.

Specialists who support the cryptomarket, hope that this situation will cool down those who want to make money on hype. And at the same time, this case will give projects with a real value the more ways for promotion through communities, without all that advertising trumpery.