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January 2013

Facebook Crypto Ad Ban | Platform Loosens Restriction on Crypto Ads

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Facebook Crypto Ad Ban

Facebook Crypto Ad Ban

According to CNBC, Facebook said on Wednesday that it will loosen its ban on cryptocurrency advertising on its platform. The result will allow businesses related to crypto and blockchain to promote their projects on the social network. The Facebook crypto ad ban first came into effect in January 2018.

Facebook Crypto Ad Ban

The social media giant first started blocking ads on initial coin offerings, saying it had concerns for its users’ welfare. It was afraid that many would fall for scams and fraudulent crypto products.

But earlier this year its stance began to change. In January 2019, it began allowing ads from projects that had received prior written approval.

Was it coincidental that around the same time there were murmurs that Facebook itself was going to venture into the cryptocurrency space with its own coin?

Now, the social media giant has gone another step further, making it so that crypto-related ads will no longer require prior written approval.

In a blog post released yesterday the media giant said:

“We’ve listened to feedback and assessed the policy’s effectiveness […] While we will still require people to apply to run ads promoting cryptocurrency, starting today, we will narrow this policy to no longer require pre-approval for ads related to blockchain technology, industry news, education or events related to cryptocurrency.”

The company’s initial ban was met with ire from many businesses that felt the new policy was unfair. The restriction on advertising meant several projects lost hundreds of thousands of dollars because their ad campaigns were suddenly banned.

>> Bitcoin Price to Hit $7,200 After Demonstrating Bullish Signs?

It also is a convenient time for Facebook to change its opinion of cryptocurrency advertising as it is reportedly working on its own blockchain project.

According to several sources, the company is building its own stablecoin that will allow WhatsApp users to send cryptocurrency payments to one another. Further, last week it was reported that Facebook has been in talks with financial firms and e-commerce companies to support its project.

Are you happy to see the Facebook crypto ad ban reversed?

Featured Image: DepositPhotos © Kesu01

OneCoin Leader Arrested in New York

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OneCoin

OneCoin

US prosecutors have arrested one leader of the OneCoin project for stealing billions from investors through the alleged pyramid scheme.

Ruja Ignatova and Konstantin Ignatov have been indicted by the State of New York for wire fraud, securities fraud, and money laundering. Ignatov was arrested this week, however, Ignatova remains at large.

The pair defrauded investors out of “billions of dollars” using fake cryptocurrency.

OneCoin

Prosecutors are calling the OneCoin project a pyramid scheme whereby members work on a commissions basis and try to recruit other members to the project. Each of these members, of which there are a purported 3 million worldwide, are required to buy a cryptocurrency package in order to join up for the scheme.

According to CoinDesk“OneCoin claims its tokens are mined by servers operated by the company and that its price growth is organic [however], neither of these are true, the release says.”

According to Attorney Geoffrey Berman, the two defendants promised big returns and minimal risk from their cryptocurrency company that was built on “lies and deceit.”

He furthered:

“They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich.”

>> Fidelity Digital Assets: Taking Its Time Evaluating Ethereum Support

Ignatova reportedly detailed in an email how she had an “exit strategy” from the project and will also face charges in India for the fraudulent scheme. Ignatova remains at large. The third leader of the project, Mark Scott, was arrested last year in Massachusetts.

Crackdown

The OneCoin project was highlighted as fraudulent since 2016. It has been globally recognized as a scam with nations across the globe warning users about it.

Have you fallen victim to a cryptocurrency scam? The market is volatile, and the risks of being scammed are high. What are your thoughts about the OneCoin project?

Featured Image: Deposit Photos © VitalikRadko

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Bithumb’s $350 Million Acquisition is All Set to Be Canceled

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Bithumb

Bithumb

Over the course of the past few years, the crypto ecosystem in South Korea has grown quite quickly and one of the better-known crypto exchanges to have emerged during that time is Bithumb. Last year in October, the Korean crypto exchange had reached an agreement on an acquisition deal, but that has fallen through due to apparent payment difficulties.

Due to the snafu, it has now emerged that some overseas investors are going to save the day and acquire the exchange. BK Consortium had agreed to acquire a 50% stake in addition to one solitary share in a deal worth $352 million.

Key Issues

However, it has now emerged that BK Consortium is going to default on those payments and had previously found it difficult to make the $100 million down payment with regards to the deal. The whole thing has turned into a bit of a nightmare for Bithumb, with BK Consortium repeatedly failing to honor its commitments.

The deadline for the acquisition was actually April, but at the time BK Consortium could not make the payment and instead raised its stake in the exchange to 70%. In desperation, BK then tried to make a coin offering in order to raise cash. However, the downturn in the crypto market forced the company to scrap the plan.

>> Overstock’s Crypto Division Invests $2 Million USD in Evernym

That being said, the South Korean exchange has managed to attract some overseas investors who are now expected to save the day. According to reports, investors from the United States and China are showing an interest in acquiring the exchange. If the overseas investors do get their hands on the company, then it is almost a certainty that a lawsuit will be brought in by BK Consortium with regards to the $100 million payment. It will be an important acquisition for whoever gets it, considering the fact that Bithumb is currently among the biggest crypto exchange in the world at the moment. It is ranked at 43rd in terms of daily volume.

Featured image: DepositPhotos © cupertino

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Bitcoin Miners Diversifying from China to the US over Regulatory Concerns

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Bitcoin miners

Bitcoin miners

Bitcoin miners in China are increasingly looking for diversification out of the country because of the anticipated crypto mining ban, the Chinese government’s thoughtful position regarding cryptocurrency, and the increasing pressure from the ongoing trade war with the US.

Squire Mining to Host 41,000 ASICs

Canadian-based blockchain firm Squire Mining, a leading miner in the world in terms of hashpower, has signed a letter of intent seeking to host more than 41,000 Bitcoin ASICs in the US. This move is part of an agreement with Kevin Turner-led Core Scientific, which is a blockchain and AI company.

Already, Squire has committed about $6.37 million to the deal to host prepayments while Core Scientific plans to spend at least $12 million in development of infrastructure to cater for the relocated equipment. The Canadian Bitcoin mining firm has close ties with the creators of Bitcoin SV Jimmy Nguyen and Craig Wright, who are currently Chain executives and they also double as advisors to Squire Mining.

>> India’s Proposed Crypto Bill Puts Crypto Owners in Jail for 10 Years

Bitcoin Mining: Centralization of ASICs

This is seen as an indication of a significant change in the PoW ecosystem. Squire’s move is a benefit for the decentralization of Bitcoin Cash, Bitcoin, as well as Bitcoin SV networks. Research in the past has pointed out that more than 70% of crypto mining is located in China with multiple sources indicating that most of the mining happens in the Guangdong province. This is a major concern because the concentration of hashpower in one region increases the vulnerability of manipulation, censorship, and even seizure by government authorities.

The largest bitcoin mining firms, as well as ASIC designers, are considering hedging their operations from China and moving their supply chains away to other countries to reduce the effect of regulations from authorities in China.

Core Scientific CTO stated that the firm could compete with Bitcoin mining firms in China. Although the costs are higher because ASICs are developed in China, they nonetheless enjoy regulatory protection in the US.

Featured image: DepositPhotos © urban_light

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