Facebook's Illegal Ad Ban was a major cause of the 2018 Crypto Crash and its relaxation is creating a new Bull Market!
Have a look at these charts.
In the 7 days after Facebook announced a complete ban on all Crypto related advertising on 30 Jan 2018 crypto markets dropped by 53%.
In the 8 Days after Facebook announced a substantial relaxation of this ad ban policy on 8 May 2019 Crypto markets have risen by 41%.
ICOs were on fire when Facebook announced its Crypto ad ban on 30 Jan 2018.
You can see how the amounts raised dropped by almost two thirds in the following 3 months with Google's 15 March 2018 Ad ban announcement turning the screws.
But because Google's implementation of the ban was delayed until June, there was some success of last ditch efforts of ICOs to raise using Google adwords before Crypto projects were shut out of it too in June 2018. After that the ICO market completely died as all feasible methods of advertising had been cut off.
Now while these charts show a strong correlation between Facebook & Google's actions and the early 2018 crash and current recovery of the Crypto markets as well as the collapse of the ICO market, it is true that correlation is no causation.
But the causation argument is strong and simple.
Facebook & Google combined control over 66% of the online advertising market. Facebook alone controls 84% of the social media advertising market, which was the main place Crypto projects advertised for users and investors before the ban.
The entire purpose of advertising is to stimulate demand and the entire multi-trillion dollar advertising industry is built on the fact that advertising does indeed dramatically affect demand for a product.
Thus when Facebook banned Crypto ads it had a devastating impact on demand for cryptocurrencies and the ability of Crypto projects to attract new users and investors.
ICOs started failing and then dried up.
The price of any currency is determined simply by supply and demand. Cut demand while keeping supply constant and price drops. It is Economics 101!
Thus both empirical evidence of correlation and economic theory of causation match up.
The class action lawsuit against Facebook & Google which JPB Liberty is organising for the Crypto industry is based on the strong legal claim that Facebook & Google's Crypto Ad Ban was illegal under Australian law and the strong evidence that the losses caused by this illegal action include:
- investor losses from the $300 Billion (Facebook) & $100 Billion (Google) drops in Crypto markets;
- tens of billions in crypto project losses and failures from the collapse of the ICO market;
- tens of billions of losses in cryptocurrency exchange revenues due to dramatically lower prices and volumes.
Everyone globally who held crypto in 2018 or was involved in a Crypto project can join the class action for free.
Steemians can sign up by simply sending an encrypted memo to @jpbliberty saying "Join Crypto Class Action. My [email/Telegram/Skype] is [xxx]."
More details here and on the JPB Liberty website
Thanks for making this clear here. Do you think this will add weight to the class action law suit against Facebook et al?
I certainly saw that some out in the world of general social media were ridiculing this idea of a court case, but I don't see how that is a reasonable position, given the data.
Yes, I think this definitely ads weight. Also Facebook coming out with their own crypto.
Both make the case even stronger.
hi Thats clearer
I believe people try to always find pattern but is not the FB that caused the crash.
Posted using Partiko Android
I've presented strong evidence showing it WAS Facebook. Where is your counter evidence?
The growth was too fast and scalability was not ready too handle this number of transactions. At the peak people paid 53$ to send Bitcoin in fees and most of ICOs projects were pure dream.
It was a normal to a correction like this to happen like with the internet dot com. We are in the of real projects phase...
While you are correct about these technical issues (in relation to Bitcoin & Ethereum but not Steem), there is no evidence whatsoever that these issues caused the market to crash. Only techies even cared about these issues.
What caused the boom was huge number of people from outside the crypto world piling into crypto creating huge demand.
The ad ban killed that demand and stopped normies finding out about and entering crypto.
The reality is Bitcoin that control the market.
Posted using Partiko Android
I've written a more detailed response to your points. https://steempeak.com/cryptocurrency/@apshamilton/the-elephant-in-the-room-impact-on-crypto-market-of-facebook-and-google-s-crypto-ad-ban
I read it and it was a good article. :)
Thanks.
Posted using Partiko iOS
There were numerous blockchains that were able to handle sufficient transactions and that could have scaled sufficiently, given the demand to. Bitcoin had issues, yes - but the ability of the 1000s of projects to scale depeneds to some extent on them receiving exposure and funds. The fuel of crypto is not only technical knowhow, but also focus and people's time. Without the attention on the key topics that is needed, the projects are not able to grow to be sustainable. It could even be argued that perhaps the shareholders of Facebook hold large amounts of Bitcoin and wanted to stall the competition until Bitcoin had fixed it's issues and could not be competed against. With hindsight I see this as actually likely - particularly since numerous people in the Bitcoin camp have said publicly that they left because Bitcoin's team is corrupt and it has dubious origins. Bitcoin would not, in my opinion, be in the relatively strong position it is today against it's competitors without this ad ban.
You bring a good point to the table that a project needs visibility.
The ad ban meant we were all just preaching the the choir. It stopped normies entering crypto in large numbers.
Posted using Partiko iOS
Congratulations @jpbliberty!
You raised your level and are now a Minnow!
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