Four implications of Facebook’s crypto ad ban

Facebook’s decision to ban cryptocurrency and ICO related ads will have real implications for entrepreneurs seeking to launch token sales

Facebook’s announcement in late January that it was banning cryptocurrency and ICO advertising on Facebook and Instagram will have real consequences for entrepreneurs attempting to reach mass audiences in the crypto space.

Facebook has said it will revisit its policy in due course, with its intention being to filter out only the bad actors placing “misleading or deceptive” advertising. In the meantime, the ban remains intentionally broad — leaving much for crypto entrepreneurs hoping for a mass connection to reconsider.

To help blockchain entrepreneurs frame and negotiate this new communications environment, here are four implications of Facebook’s decision:

1. Community building pre ICO just got harder. An ICO’s success depends partly on the strength of a company’s community. Facebook ads that took users to landing pages where they’d be prompted to give up an email address were a key tactic in email list and community building. With this cornerstone now gone, ICO teams will need to find new ways to get people into their funnels.

2. Public relations will be Increasingly important. Earned media coverage pre-ICO has always been a key part of generating awareness, establishing credibility and community building. In a no-Facebook ad universe, this channel will now have to shoulder a heavier burden. It means entrepreneurs have to either find more effective ways to conduct their own media relations or get better at finding the right agency partners. The bottom line is that money spent on PR needs to return more than it previously did.

3. Telegram groups, boards and Reddit matter more. As with PR, tried and true channels such as Telegram groups, Internet chat rooms, and Reddit will now matter more than they previously did for getting the word out.

4. A healthier environment for ICOs. Truth be told, the ability to blanket the world’s most popular social network with ads had led to numerous dodgy projects raising significant funds. Facebook's decision to ban these ads will make it more difficult for illegitimate, shifty ICOs to succeed. With that, perhaps now the Wild West will be a little less wild.

So what can you do? A strategy for the no Facebook world
If you decide to go the PR route to combat the crypto ad ban, it will be all the more important to do it right. ICOs are big news these days, which is both a good and a bad thing. You need to stand out from the competition while also gaining the public’s trust and interest.

For example, focus single-mindedly on the initiative(s) the ICO will fund, not the ICO itself. The media aren’t going to be impressed by your fund-raising mechanism, but what might capture their interest is the planned outcome and the problem your project solves. Oh, and build something - having a prototype is critical, even if it’s unpolished, it strengthens your story, and demonstrates that your idea is more than a concept.

Also, make sure everybody knows you mean business — clarity and transparency regarding your ICO roadmap and team are crucial. It is vital to demonstrate a feasible, well thought out plan and to have a qualified and trustworthy core team and advisors that can deliver.