Facebook bans cryptocurrency ads, Bitcoin finds support around 10,000
Cryptocurrencies aren’t having the best of time lately. After skyrocketing in the closing weeks of 2017, January saw Bitcoin and co suffering serious sellouts.
The latest setback came in just a few hours ago from the Silicon Valley when Facebook announced a ban on cryptocurrency related ads. The official statement explained that they are taking down ads promoting digital coins, including Initial Coin Offerings (ICOs) and binary options.
Facebook’s actions come as a response to the numerous crypto-related scams that emerged with the increased interest in Bitcoin over the last months. The social media’s aim is to protect its users from ‘misleading and deceptive promotional practices’.
It doesn’t matter if the advertiser is a legal, legitimate business or not – no cryptocurrency ads would be allowed.
As Rob Leathern, one of Facebook’s ad directors, explained ‘this policy is intentionally broad’. He further implied that it might be revisited at a later stage, once the social media giant has figured out a way to filter the frauds from the legitimates.
On a similar note, yesterday, the US Securities and Exchange Commission (SEC) revealed it’s filed a suit against AriseBank. The Texas-based firm has allegedly raised $600 million during its ICO. SEC has frozen the collected assets, claiming the sold tokens are to be considered and regulated as securities and that AriseBank has made false statements to potential investors to boost its ICO results.
Then there comes the news of the Japanese cryptocurrency exchange Coincheck, which lost the equivalent of $530 million in hack they suffered on Friday. More than 260 000 investor accounts were affected by the heist, although the exchange did promise to partially refund about 80% of the stolen NEM tokens, using its own cash funds.
Bitcoin dropped more than 10% to $9,700 before recovering slightly above the 10,000 mark. It’s almost 40% down since the beginning of the year, and although it’s still leading the pack with more than $170 billion market cap, some of its peers are catching up.
Ethereum also suffered a major drop in mid-January, but it’s still more than 47% up in 2018. It’s one of the very few cryptocurrency to brag an upward move in the last month. Other major altcoins, such as Ripple, Dash, Zcash, Litecoin and Bitcoin Cash are experiencing a decline, just as Bitcoin.