Social Media Ban on Crypto Advertising Behind Cryptocurrency Slump in First Quarter of 2018
NASDAQ is open to becoming a cryptocurrency exchange. However, the market has been definitely not been all well for cryptos since the year started. Throughout the previous three months, Bitcoin has been battling to keep its price above $7,000, and alternate cryptos haven’t done well either.
The most noticeably bad entertainer has been Ripple’s XRP which has drooped over 75% since hitting its record high in January. Ethereum bottom downed as a result in falling price that began last November, while Litecoin, Stellar, NEO, IOTA, Cardano, EOS and a large portion of the other major cryptos lost considerable values. However, the recuperation now seems to be starting for the crypto market especially as Bitcoin regains stamina and hovers around the $9,000 mark.
The current drop was caused by various variables that include the hard inquiries which the market abstained from tending to a year ago. The first of these worries are regulatory, with governments over the world breathing down on any cryptocurrency whose practices they consider ‘fishy’.
The government attacks seem particularly coordinated at crypto trades, and Japan is seen as leading the crackdown on trades. A standout amongst the most crypto-accommodating countries, Japan is now demanding a strict administrative arrangement with respect to trades, particularly since the hacking of Coincheck.
As a result, Japan has closed crypto platforms Tokyo Gateway and Mr. Trade. Binance is also migrating to Malta following Japan’s financial regulatory agency’s refusal to renew its permit.
Another blow came from the banning of cryptocurrency advertisements on social media giant Facebook, which reported in January that it would boycott crypto advertisements to shield its clients from false ICOs. The impact of Facebook’s ban on the markets was prompt, and most cryptos initially dropped in value even though they recovered later.
Google, Twitter and MailChimp are a few of the other online platforms that have slammed the door on crypto advertisements. All these bans have adversely affected the crypto market as they have influenced many people to question the credibility of digital currencies.
In the year 2017, ICOs raised over $4 billion, an exceptionally great figure given that ICOs were to a great extent obscure the year before. Unfortunately, ICOs also turned into a most loved channel for con artists. Numerous clueless speculators put their well-deserved cash into shady undertakings just for them to be shut down a couple of months later.
With the ICO segment being to a great extent unregulated, there was no chance for investors to recuperate their investments, and a huge number of dollars were lost. ICO platforms where people lost money included AriseBank, Confido, Bitconnect, MyBTGWallet, Bitcard, ToTheMoon, and some more. This brought an awful notoriety to the world of cryptos, despite the fact that many were genuine and did business legally.