Facebook’s ban is iCandy’s gain as ICO ads move to mobile games
Facebook banned the advertising of Initial Coin Offerings last month, but iCandy reckons it has the perfect substitute.
An Initial Coin Offering (or ICO) is a form of crowdfunding. It is like an Initial Public Offering — but instead of offering shares in a company, an issuer offers digital tokens that can be traded on cryptocurrency platforms or for digital services.
Mobile game developer iCandy (ASX:ICI) — which has been suspended from trade since November pending an acquisition — already generates income from digital ads in its apps.
Now it plans to accept ICO ads — paid with cryptocurrency.
Clients will be charged a fee of 4 per cent in Ethereum (a type of cryptocurrency) and 4 per cent in the ICO’s token for every successful purchase via one of its ads.
Facebook last month banned ads for financial products such as ICOs and cryptocurrency “frequently associated with misleading or deceptive practices”.
iCandy, which has a market cap of $12 million — says it has the skills to weed out the bad stuff and will only show customers those that are “top quality and legally compliant”.
ICOs ads will only be approved if they pass a due diligence test and prove lawfulness in a relevant jurisdiction.
And just to be extra sure, they’ll have a disclaimer on their website.
“iCandy Interactive will ensure that the landing page and product offering document that its ICO ads point to will have clear and visible warnings to readers about the risks and volatility associated with the trading of digital tokens,” it said.
It said payment in tokens was too good to refuse, with the possibility of generating a higher upside on its in-game advertising.
Trials of the ads will begin with an initial batch of 10 ICOs.
iCandy shares have been suspended since November 13 pending a potential acquisition.
Earlier this month it announced the development of a MasterChef game in conjunction with fellow ASX-junior Animoca (ASX:AB1) but securities remain in suspension.