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Snap Inc. banned the advertising of so-called initial coin offerings (ICOs) in the Snapchat app, Cheddar spokesman said.

This step forces Snapchat to use the latest social networking platform to ban advertising for ICO crypto currency, becoming an increasingly popular form of collecting money by issuing virtual tokens instead of more traditional shares of the company.

In January, Facebook banned all crypto-currency ads, including ICO advertisements, although it still allows educational announcements related to the cryptic market. Google announced that last week it will ban all cryptographic ads, and Twitter is reportedly planning to declare a similar ban in the coming weeks.

Unlike Facebook and Google, the current ban on Snap for ICO is effective from the beginning of February and does not apply to other types of crypto-currency ads, Snap spokesperson said. The spokesman declined to comment on whether Snap will be able to ban all announcements related to cryptography in the future.

In 2017, the companies attracted billions of dollars through ICOs. However, the spread of the system as a way to attract capital quickly led to the fact that the SEC reportedly conducted a broad assessment of this practice. A recent survey of the North American Association of Securities Administrators found that the millennium was most at risk of becoming victims of fraud on the part of financial technology-related products.

Snap faces pressure from investors to continue the growth of the advertising business amid growing competition from Instagram from Facebook. But growth did not go well without failures. Recently, the company came under fire by approving an announcement asking whether the audience would rather be Slap Rihanna or Punch Chris Brown. Rihanna's statement criticizing the company later sent the market value of Snap to about $ 800 million.

Reports by Alex Heath.

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