A small decline in the value of cryptocurrencies isn’t necessarily big news these days as prices have been tracking down toward stabilization ever since the December spike, but a fairly sharp drop has occurred in the last few days that is likely in response to the news that many large web based organizations have chosen to ban a selection of cryptocurrency related advertisements.
Twitter is the latest company to announce that they are banning the advertisement of Initial Coin Offerings (ICOs) on their platform, and the reaction from the crypto investment community has been a sharp one. Twitter has become the fourth major web based organization to ban the advertisement of Initial Coin Offerings (ICOs) and, in the wake of their announcement, Bitcoin (XBT) has dropped 7.67%, Ethereum (ETH) has dropped 5.86%, and Ripple (XRP) has leaked nearly 2.00% of its value.
Before the rest of us run for the hills and sell all of our coins, however, it should be understood just what these bans are going after. The bans put forth by Google, Facebook, Snapchat, and Twitter are all geared toward limiting the advertisement of Initial Coin Offerings (ICOs) and this is being done in an effort to protect users from any illegitimate coin offerings. According to some sources, there have been hundreds of thousands of ICOs that have popped up in the last few years and it does make sense that users should be given a legitimate and predictable avenue through which to find reputable new coins. To that end, we can recommend a couple of excellent resources for just that. The Initial Coin Offerings portion of this website, for example, is dedicated to highlighting and detailing some of the most promising and legitimate new cryptocurrencies on the market. ICOAlert is another excellent resource for finding new digital coins and their associated white papers.
The big takeaway from an event like this is that those pulling out of major cryptocurrencies after an announcement like the one made by Twitter are making judgements based on investment principles more specifically geared toward risk management in business based securities. Confidence might be an important issue in the value of a cryptocurrency, but it is the underlying technology of the blockchain and the usability of the coins themselves that will continue to give the digital assets both purpose and value. This is the first time in quite a while that the price of Bitcoin (XBT) has plummeted below the $8,000 mark and perhaps this is a sign that more of us should be jumping on board rather than abandoning ship.