Yesterday, Facebook issued a statement that said the company will be banning all advertisements for “binary options, initial coin offerings and cryptocurrency.” In an effort to eliminate ads associated with misleading or deceptive marketing strategies, Facebook determined this was a necessary decision.
This statement was issued shortly after information was released about Bitfinex and Tether both having been issued subpoenas last week by the U.S. Commodity Futures and Trading Commission. Bitfinex, one of the largest cryptocurrency exchanges in the world and Tether, a digital token company, have a close working relationship that many have voiced concerns about. Several of the same people help run both companies, and many think the companies are shady.
The U.S. Securities and Exchange Commission appeared to be on a crypto hunt, as it also announced that a court had approved the emergency asset freeze for AriseBank, which was purported to have earned $600 million in sales from new digital coins. As of yesterday, two of the Texas-based websites were not operational, and the company’s lawyers could not be located for comments about the situation.
Bitcoin began to plummet in value amidst the negative uproar, dropping by 12 percent before recovering slightly and moving back up today. As of this evening, it sits at a little over $10, 200 per coin.
To top it off, there is still concern about strict regulations in east Asia, a huge market for cryptocurrencies. South Korea’s Financial Service Commission is trying to reduce speculation. The country has implemented bans on anonymous trading accounts.
The domino effect of negative news surrounding cryptocurrency began last week, when
Coincheck, a major Japanese exchange, experienced a huge theft of its coins, worth over $500 million.
The founding partner of Tetras Capitol, Alex Sunnarborg, said that the hack likely, “spooked the market a bit, and especially among those with balances on exchanges, leading to the recent selling and drop in prices across crypto assets.”
However, when looking at history, this past week’s flood of worrisome news is probably not anything that will stop Bitcoin in its tracks. It has survived similar, if not worse, problems throughout the years. The currency has dropped down in value several times in the past after bad news upset the market, only to recover and continue increasing in value each time.
In fact, for every piece of troublesome news, some positive news comes forth. This week, Square announced that the Bitcoin (BTC-USD) functionality is now being offered to most users of its Square Cash app, after having tested it out over the past couple of months. This is bound to have many people excited.