After Facebook announced its reversal on the cryptocurrency advertisement ban, many traders and analysts speculated that the sheer impact of the news will push the cryptocurrency values considerably upwards. Unfortunately, the reversal of Facebook’s cryptocurrency policy brought no effect to the crypto market as cryptocurrencies almost failed to sustain momentum, let alone move forward.
Within the 24 hours of reversal of the ban on cryptocurrency advertisements, the crypto market lost over $7 billion in value as a result of a minor correction. The market had been performing considerably well after a long time with bitcoin recovering from the $5,900 resistance level to $6,100. It was expected that the momentum with only increased with the news. However, that was not the case.
Less-popular tokens like Theta, Qtum, and Ontology were on the going hard with gains against bitcoin between 20 to 40 percent in just the 7 days before the ban was lifted. However, as major cryptocurrencies including Ethereum, Ripple, Bitcoin, and Bitcoin Cash started losing momentum, the tokens also lost momentum.
The reversal of Facebook’s ban on crypt ads having no effect on the crypto market only raised a more thoughtful question that the maybe the ban on cryptocurrency ads by Facebook had no effect on the market either. It is worth mentioning that the ban on cryptocurrency ads by Facebook was deemed as nothing less than a controversy by many and a large number of media outlets, investors, and analysts pointed fingers on Facebook for deploying disruptive business practices for selfish reasons. Although the reversal of the ban on cryptocurrency ads did spark a lot of positive conservations about the social media market getting ready to embrace crypto technologies.
While countless theories were brought forward by angry investors and media outlets about the reason for the ban on cryptocurrency ads – the biggest one being that Facebook was clearing the grounds to release and market its own blockchain product – it is also important to understand the reason stated by Facebook. Facebook banned all sorts of cryptocurrency ads from the social media website and the official reason was that the company wanted to protect its users from frauds and digital thefts which were very common during that time.
Now that Facebook has unbanned cryptocurrency advertisements and there has been no blockchain-based product launched by the company, you can start to understand why Facebook did what it did. It becomes pretty clear that the company did not want to be liable for fraudulent ICOs and Token offerings which potentially could have made their way to potential victims through Facebook in the form of an advertisement. Since there was no way of knowing the authenticity of any ICO, it was a smart move to ban all of them from advertising. It is also notable that tech giants including Google and Twitter also banned these ads at the same time when Facebook released its cryptocurrency policy.