I think Facebook was genuinely trying to stop ICO promotions on unsuspecting users, not silence potential competitors. They are doing a poor job though, I still get scammy ICO advertisements while the MIT Bitcoin Club is banned from promoted our events.
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Yes, you are probably right. It is a bit over-the-top to block ads from competitors, but it still feels a little weird if they end up creating a coin or token while still banning all mentions of other cryptos.