Facebook’s ban on cryptocurrency ads all about Litecoin integration
Facebook’s ban on cryptocurrency ads all about Litecoin integration by ALEX CHRISTOFOROU – The Duran
The Duran reported earlier in the week that in an effort to stop misleading or deceptive ads, Facebook was banning all advertisers from promoting cryptocurrencies…even moving to ban bitcoin ads.
The price of all major cryptocurrencies dropped following the Facebook announcement.
Facebook said its new policy will prohibit any advertisements related to cryptocurrencies, binary options or initial coin offerings (ICO) from appearing on the social media platform.
The move however may be less about protecting users, and more about shielding its walled garden from cryptocurrency competitors, as FB moves to either integrate Litecoin or launch its own coin in the future.
Earlier this month, rumors started spreading about whether Facebook would either adopt Litecoin or create its own cryptocurrency. Yesterday, Facebook announced that it would block all cryptocurrency and ICO advertising on its platform. Coincidence? Let’s look at the details.
Between December 6th and 17th of 2017, Litecoin tripled in value, from $102.93 to $360.66 according to CoinGecko. Three days after it started to decline from its all-time-high, Charlie Lee, the founder of Litecoin announced that he sold off all of his LTC. Since then, Litecoin has been on a mostly downward trend and currently sits at $159.50. There has been some speculation about whether Lee’s sell-off had an impact on the prices of Litecoin, and there have even been accusations of insider trading, given that he was the Director of Engineering at Coinbase. He denies these allegations and explained that his decision to dump his LTC was to remove any sort of conflict of interest between his influence and any potential gains. Taking the financial gains out of the equation, it stands to reason that Lee may now tweet more freely about his thoughts while focusing on his skills as an engineer.
At the time that Lee sold off his LTC, Coinbase announced the appointment of Facebook executive, David Marcus to their board of directors. David Marcus is the Head of Messenger at Facebook, with expertise in mobile-first products. Prior to that, he was President of PayPal, where he accelerated the overall growth of the company. The appointment of Marcus to the Coinbase board of directors sparked some speculation.
Tom Luongo published the story on December 20, which was later picked up by Zero Hedge and various other publications. According to Luongo, Charlie’s announcement prompted a big sell-off in the wake of Coinbase adding Bitcoin Cash (BCH) to its platform. He saw the negative response from the market as temporary, though Litecoin is still on a decline. From a technology standpoint however, it’s a promising coin. It’s lighter, faster and cheaper than Bitcoin, is fully capable of smart contracts and according to Luongo, it has a “payment processing layer to facilitate point-of-sale convenience while retaining proof-of-work security.” It has the sort of technology built into it that an organization like Facebook might find appealing.