Social Media Tightens the Screws on Crypto as Twitch Bans Gambling Livestreams

Streaming platform Twitch is taking a tougher approach to crypto, by banning crypto gambling livestreams.

In a statement on Twitter, Twitch announced the ban will prohibit “sharing links or referral codes to all sites that include slots, roulette, or dice games that aren’t licensed either in the US or other jurisdictions that provide sufficient consumer protection.

Twitch explicitly listed Stake.com, Rollbit.com, Duelbits.com and Roobet.com that fall under this remit, adding that it “may identify others as we move forward.”

According to data from TwitchTracker, over 50,000 people watch Twitch celebrities play gambling games at any given time. The gamblers primarily use cryptocurrencies such as Ether and Bitcoin. Stake.com reportedly sponsors the biggest influencers up to US$1 million per month.

Twitch’s ban comes in response to backlash from its own community, with several top personalities threatening to stop livestreaming on the platform if Twitch did not address the gambling issue. The community is further concerned that Twitch fans have become addicted to crypto gambling after watching streamers.

The ban will be enforced from 18 October 2022.

Facebook, Twitter, LinkedIn, TikTok

Crypto concerns are not exclusive to Twitch by any means. LinkedIn has enforced a blanket ban on crypto advertising. “Ads related to the buying, selling or trading of cryptocurrencies are prohibited,” the LinkedIn site reads.

Twitter has globally prohibited advertising of “Payday loans, cash loans, and P2P Cryptocurrency initial coin offerings (ICOs), Initial exchange offering (IEO), Initial decentralised exchange offering (IDExO) Decentralised crypto borrowing / lending, DeFi insurance, DApps, Decentralised exchanges, Cryptocurrency mining, Binary options, Bail bonds.”

TikTok has banned cryptocurrency influencers as well as all creators promoting financial services including BNPL, loans and credit cards.

Meanwhile Facebook is taking a more diplomatic approach. In December 2021, the social media giant announced it was reversing a long-standing crypto ban. “We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry,” Meta said in a statement.

Discord, Tele to the Rescue

Mainstream social media may not have the stomach for crypto, at least from an advertising perspective, but there are still avenues for crypto nuts to explore their passion. Whilst Twitter has a strict no-crypto-ads rule, the crypto community still uses the platform to pump their projects. With countless Twitter handles ending in .eth, it’s clear that Twitter’s crypto ad ban is not deterring the community.

The likes of Discord and Tele also continue to be a safe haven for degens to pump their projects too. Word of mouth and community support serve as stronger marketing mechanisms than sponsored adverts, and conversation platforms such as Discord and Tele may just offer the best opportunities for “crypto marketing” at a time when other social media platforms are banning them.