Bitcoin.Creative Commons

Twitter has joined the league of social media companies banning initial coin offerings and token sales on its service.

The microblogging site said it was banning the advertisements on its platform due to concerns that the content is often related to deception and fraud.

The impact on bitcoin

The largest cryptocurrency traded flat at $7,847.87 as of 11 am in Hong Kong, according to Bloomberg.

Google and Facebook, two of the largest online ad providers, took similar action earlier this year and Bitcoin prices spiraled down following the two bans.

Bitcoin fell 12 percent in late January after Facebook announced it would ban ads on "binary options, initial coin offerings, and cryptocurrency" while the cryptocurrency slipped below $8,000 following the Google ban.

Going by the Bitcoin price reaction, cryptocurrency market showed resilience when Twitter enforced its ad ban.

According to Brian Kelly, the CEO of BKCM, the crackdown could be an upside for digital currencies. "It's a good thing for the industry, Facebook and Google ads were always a red flag for me," Kelly told CNBC on March 14. "It's not having any impact on price."

Tatiana Moroz, the founder of Crypto Media Hub, told Bitcoin Magazine that filling the space left by the absence of advertising on the search engine and social media platforms will result in higher quality interactions through community involvement and relationship building.

I think it is going to become even more focused on relationships and finding trusted partners who can help them navigate the space.

Some think the recent ad ban by the Silicon Valley giants will open up growth avenues for smaller firms providing industry-specific advertising services. Niches will form to pick up where Google and Facebook have left off.