In the last 6 months, the crypto market has been on a downward spiral, with Bitcoin dropping from a high of $20,000 to its current price of around $6000. While there are many reasons behind this drop in crypto, the most important one is a decline in crypto related adverts. In January, Facebook (NASDAQ:FB) announced that they were banning crypto related adverts, as a security measure for users of the social media platform. While this didn’t look like a big deal at the time, it had a negative impact on crypto, far worse than most of the other factors that have contributed to the decline.
That’s because when Facebook banned crypto adverts, it cut off the main avenue through which, new investors got to know about cryptocurrencies. It meant that no matter how much progress crypto projects made from that point on, never got to know about these projects. This starved the market of new money, and low volumes have characterized the market up to this point. Of course, other factors like market manipulation have played a hand too in the market decline, but they are secondary. They are secondary because if there were high volumes with new money getting into the market, it would be difficult for a few players to manipulate the market.
However, this all is about to change. Facebook is reversing the ban on crypto. According to the company’s product management director, the company is reviewing this ban, and is updating its advertising policies to reflect the same. This means that save for ICOs, which were the main reason why Facebook banned cryptos, good projects will be able to advertise on Facebook again. So how will this impact on the value of the crypto market?
Well, the biggest impact of this revision in Facebook (NASDAQ:FB) policy will be on altcoins. There are so many altcoins that are making major moves in the market, but are not attracting new investors. Once Facebook drops the ban, such projects will be in a position to showcase their capabilities, in the market, which will attract new money into them, and drive up their value. If a good enough number of altcoins can push their visions to investors through Facebook, there could be an altcoins boom in the near future. This is a big deal because it could actually lead to the biggest thing that every crypto investor wishes for, and that’s the decoupling of altcoins from Bitcoin.
At the moment, the value of the crypto market is largely determined by Bitcoin. That’s because it is the largest crypto, and the one that most people got to know in the last crypto pump. This has created an environment where good altcoin projects can’t grow no matter what strides they make in market. If the Facebook (NASDAQ:FB) ban reversal changes that, then the next Bull Run will be bigger than the 2017 one. Unlike 2017 when most projects were mere concepts, many of them have now actualized their whitepapers, and are ready to change the world.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.