The stock price of Twitter Inc (TWTR) has risen by over 3.15% today till the late morning trading session. The stock price of Twitter had fallen by over 10% since its close on Monday. The stock closed at $38.07 on Tuesday.
The San Francisco based company is an online social networking service that enables users to send and read short 280-character messages called “tweets”. Registered users can read and post tweets, but those who are unregistered can only read them. Users access Twitter through the website interface, SMS or mobile device app. Twitter Inc. and has more than 25 offices around the world.
Twitter has been toying with cryptocurrency for the last few weeks. First, rumours emerged that it would be following Facebook and Google in placing a ban on crypto advertising. Then, cryptocurrencies received a glowing recommendation from Twitter’s CEO, Jack Dorsey, who said Bitcoin will be the world’s – and Internet’s – single future currency.
However the toying came to an end with a snap as Twitter announced that it would indeed be putting up a rather large ban on cryptocurrency advertising. This is in line with Facebook and Google, who did the same previously for similar reasons too.
Twitter has said the prohibition will cover advertising of Initial Coin Offerings (ICOs), as well as token sales. This can be considered an attempt to stamp out fraudulent, deceptive and dodgy ICO scams which are currently rife in the market.
However, the ban goes further and bans ads by cryptocurrency exchanges and cryptocurrency wallet services; unless they are public companies listed on certain major stock markets. It feels like an extra step by Twitter that is too harsh on the crypto community as a whole. There are even some that feel it is hypocritical from a platform that is full of other scams.
Much like Facebook, which stated its banning policy would be “intentionally broad” to begin with, Twitter is taking aim at many business sectors within the cryptocurrency market place: ICOs, exchanges and wallet services are all in their crosshairs.
With such a bold and broad attack on the burgeoning cryptocurrency space, reactions have been mixed. There are those who feel that scams in the market having an avenue to reach more susceptible people is dangerous. But there are also those who think Twitter’s overreaching ban is stifling all the good out there that needs to be supported, and requires advertising to receive that support.
Our analysts have given a “HOLD” rating to Twitter’s stock. Despite having dropped by over 10% earlier this week, the stock is not fluctuation by that big of a margin and is expected to bounce back.