Facebook flip-flop on Bitcoin ban will power cryptos claims deVere

June 28, 2018
Chris Wheal

Financial solutions specialist deVere Group says the lifting of Facebook’s Bitcoin ban must boost cryptos. The social media titan yesterday reversed its ban on cryptocurrency ads, firing speculation Facebook may be planning its own crypto move.

“The crypto market,” said Nigel Green, founder and CEO of deVere Group, “has been in bear territory over the last week or so. Facebook’s step can be expected to help take it back towards the bulls.”

Facebook reverses its crypto ad ban – but not for ICOs; credit: Shutterstock

He added: “Whilst there is likely to be bearish sentiment for a while, savvy investors are looking at the bigger picture. For instance, Bitcoin, the flagship cryptocurrency, is still 140% higher than this time last year.”

Facebook crypto move imminent?

While Facebook is allowing cryptocurrencies to re-advertise there is still a solid ban on ICOs. Facebook boss Mark Zuckerberg has already marked out his rising interest in cryptocurrencies, saying how they could be harnessed by social media. 

“There are important counter-trends to this – like encryption and cryptocurrency – that take power from centralized systems and put it back into people’s hands…I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services.”

Zuckerberg at Madame Tussauds – the Facebook CEO is thought to be looking hard at cryptos; credit Shutterstock

However it’s not completely clear why Facebook changed its mind. The social media giant is thought to be concerned about user usage and – linked to this – ad revenue implications. 

Research firm eMarketer claims Facebook lost 2.8m US users under 25 in 2017 and predicts 2018 will see further user erosion.

While Facebook remains the undisputed leader of the social media space its growth is off the pace compared to previous  years – though its profits are markedly up – while YouTube and Netflix remain formidable competitors.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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