This reaction possibly goes to show the effect such news has on the nerve of participants in such volatile markets, as much as it does on the effect Twitter's ban will actually have on those currencies - with its measures specifically designed stop spoofing and scam accounts, which have previously been used to falsely inflate prices in so called 'pump-and-dump' operations.
"With the increasing number of ICOs coming to market, it is an impossible task for anyone, much less platforms like Twitter or Facebook, to keep on top of which ICOs and cryptocurrencies are genuine versus frauds", said Zennon Kapron, director of the financial consultancy Kapronasia. "We will continue to iterate and improve upon this policy as the industry evolves", a statement from Twitter provided to VentureBeat read.
The new policy, which will be rolled out over the next 30 days, will reportedly ban ads by cryptocurrency exchanges and cryptocurrency wallet services, unless they are public companies listed on certain major stock markets. However, if significant regulatory action is taken by the United States, the major cryptocurrencies could see a dramatic market decline.
Overall, this news is being met with considerable enthusiasm. For Japan, advertisements governing banking, securities, foreign exchange, virtual currency exchange trading and insurance must be authorized by the Financial Services Agency.
In 2017, $5.6bn was raised through ICOs, but there are also concerns that scammers are using online ads to find victims willing to part with their cash for what may be revealed as the Dutch tulip auctions of our age. Obviously, Twitter doesn't want to risk advertising potentially fraudulent ICOs on its very popular platform, so this ban certainly makes sense when you look it at that way.
The logo for Twitter is displayed above a trading post on the floor of the New York Stock Exchange on February 8.
The move by Twitter to ban cryptocurrency-related adverts on its networks follows that of Facebook and Google, which took a similar step earlier this year in an attempt to protect their user communities. According to web traffic tracker SimilarWeb, less than 1% of traffic on exchange websites comes from paid advertisements.