Many investors and analysts expected the a cure for cryptocurrency advertisement ban by $576 billion technology giant Facebook to fuel a short-term corrective rally. However, bitcoin as well as rest of the cryptocurrency market struggled to sustain momentum.
As you will know, in the past Twenty-four hours, the crypto market lost over $7 billion amidst a small correction. On June 26, looking for a speedy recovery by bitcoin from the $5,900 region, market trends seemed to be gaining momentum with the short-term.
Likewise, Tokens which include Ontology (ONT), Theta, and Qtum performed particularly well, recording 20 to 40 % gains against bitcoin over the past seven days. But, as major cryptocurrencies including bitcoin, Ethereum, Ripple, and Bitcoin Cash slowed up, tokens began to lose momentum.
Facebook did not have any effect on Crypto
Unsurprisingly, the?reverse ban?on cryptocurrency advertisement by Facebook had no impact on immediately BTC and other cryptocurrencies, suggesting which the initial cryptocurrency advertisement ban by Facebook didn’t have impact on the cryptocurrency market to begin with.
At the time, many mainstream media outlets and analysts attributed the fall in the market valuation of digital assets towards ban on crypto ads by Facebook that evidently did not have any effect on the market industry in any way.
The decision to unban crypto ads on its platform by Facebook triggered positive conversations about cryptocurrency adoption on various advertising and marketing platforms and on the web communities. But, you will need to understand the reasoning behind Facebook to use initial crypto ad ban. In January, Facebook had banned crypto ads because the device did not want to be liable for initial coin offerings (ICOs) and potential losses of investors involved in token sales.
Recently, Chicago Board Options Exchange (Cboe) president Chris Concannon, who represents the initial major commercial lender in the traditional finance market to commit to the cryptocurrency market, declared that the US Securities and Exchange Commission (SEC) will likely pursue investors that taken part in ICOs and sellers of tokens.
“The actual party that offered the unregistered coin, they’ll have been engaged in issuing an unregistered security. Anyone that sold that off is often deemed an unregistered underwriter. Should you sold someone an unregistered security you could be liable to them assuming they decide to drive them to court.”
It is incredibly likely that attorneys of Facebook encouraged system to eliminate ICO ads on account of potential scrutiny through the US SEC and immediately thereafter, Facebook banned crypto ads.
In its recent announcement, Facebook reaffirmed that while crypto ads are permitted, ICO ads are nevertheless not allowed.
“Given these restrictions, few people who wants to advertise are able to do so. But we’ll enjoy feedback, view how well this policy works, and work to study fractional treatments so that, if required, we can revise it in the future,” Facebook product management director Rob Leathern, said.
Where the industry goes next
Considering your Facebook case has no cause problems for the cryptocurrency market the slightest bit in the short-term, the buzz of digital assets will solely rely on the state of industry.
Currently, the issue with low volume on the crypto market stands additionally, the volume of bitcoin has actually decreased from $4.5 billion to $3.5 billion, while Ethereum’s volume has dropped towards lower end of $1 billion.
Unless the level of major digital assets spike up in the next 24 to 48 hours, it is unlikely how the market initiates a considerable corrective rally and loses more style in the short-term.
The cryptocurrency ecosystem having a blockchain-bitcoin technology as genesis provides extensive to offer, the crypto market reacts inside a little controlled way, several factors will affect its performance, this is a very interesting world, discovering its one of the prizes, for investors.