By CCN.com: Twitter needs to update its restricted content policies for financial products and services as it relates to crypto. The company is behind the times now that Facebook has decided to loosen up about the market. Jack Dorsey is one of bitcoin’s biggest fans in Silicon Valley. Yet for some reason, his social media company remains mired in red tape for crypto startups looking to advertise. Twitter implemented the ban on crypto-related ads last year. If he would apply a similar approach that he has adopted for his other company Square, the sky would be the limit for Twitter’s stock.
Here’s what’s banned from advertising on Twitter:
And here’s what’s restricted:
Isn’t it time to revisit these rules?
This is the year of tech with the FANG stocks – Facebook, Amazon, Netflix, and Google parent Alphabet – all leading the stock market higher. Twitter is in there, too, generating returns of 35% year-to-date. This compares to 40% gains over the same period for Facebook’s stock.
Facebook, however, is close to revealing its new cryptocurrency, which prompted the changes in its crypto ad policy. Bitcoin is now decidedly in a bull market, and companies are going to want to capitalize on that trend. The ad dollars will be directed to Facebook by default, not Twitter. Jack Dorsey is missing out on an opportunity to seize more of the ad market share pie. Adding crypto ads would generate excitement not only from within the crypto community but also from outside of crypto from investors who are looking to gain exposure to this space tangentially
Bitcoin is sure to provide a bounce to companies that embrace it, especially the first-movers. While Jack Dorsey’s Square fits the bill, Twitter does not – not by a long shot. The U.S. 2020 presidential elections are also right around the corner. If you want to hear what Donald Trump is saying, you follow him on Twitter. Twitter, which reportedly boasts a war chest of approximately $260 million in free cash flow in the most recent quarter, will benefit from that ad flow.
It’s unclear what it will take for Dorsey to open up the floodgates to revenue generated by crypto ads. Perhaps they will need to have more skin in the game, like Facebook; perhaps a tweet coin or something. One idea is for Twitter to have a bitcoin bug so that users could follow a live BTC price on the social media platform. Instead of banning bitcoin exchanges, they could work with them to provide transparent market data. Twitter is already a very popular destination for the crypto community. Why not use it to the company’s advantage and see Twitter’s stock skyrocket?
Last modified: July 2, 2020 7:36 PM UTC