Cryptocurrencies make up a growing market, one that the team at E World Holdings is extremely excited about. The industry’s market cap may have stabilized, but new initial coin offerings (ICO) are continued to receive funding with each passing week. Still, these digital currencies face challenges.
Hacking and out-right scams made headlines last year posing an imminent threat to nearly every industry. Precautions were taken and proved somewhat successful in securing investments within this blockchain reinforced sector. However, the market has become too large to proceed without regulation.
The question many are asking is how far will regulations go? This uncertainty, along with the past scams, caused several online advertising mediums to ban ICOs. Among the most well-known companies are: Google – who initially resisted, Baidu – A Chinese search engine under regulatory pressure, and Facebook – one of the earliest to ban ICOs.
The recent Google ban is due, in part, to fears of regulatory action. Its users will still be able to search for information about ICOs though. This makes SEO professionals more important in the crypto space.
Google’s fear of regulators is not surprising considering Facebook’s response while in the public eye during investigations into its information collection procedures. Baidu also operates within an environment of increasing regulation as the Chinese government seeks to oversee its crypto space.
Scams tainted the whole crypto industry which forced regulators to take action. Serious ICOs still expect to profit, at least in the short-term. Though regulatory pressures seem to cause investors to take a wait and see approach. Some believe that Google is positioning itself ahead of imminent Securities and Exchange Commission (SEC) rules.
Google stands to lose about $25 million a year from its ICO ban. Several indications are that the market is growing in both public attention and competition. This means that advertising revenue will likely grow in the near future. Since search engines comprise the majority of traffic to ICO homepages, Google remains in the center of an exploding market and regulatory tightwire.
Big ICO houses may benefit the most from new SEC rules. Without the likes of Google and Facebook to compete with, these houses can market themselves as virtual ICO incubators. As new ICOs find penetrating the market increasingly difficult, serious projects will welcome the type of full-service development and advertising campaigns that a virtual incubator can offer. If the recent spike in popularity for cryptocurrency is any indication though, these major companies may be the ones to regret the ICO changes.