Bitcoin plunges as social media cracks down on cryptocurrency ads

Volatile bitcoin took another punch to the gut.Bitcoin briefly fell below $8,000 because of concerns that top ...

Posted: Mar 27, 2018 10:34 PM
Updated: Mar 27, 2018 10:34 PM

Volatile bitcoin took another punch to the gut.

Bitcoin briefly fell below $8,000 because of concerns that top social media companies are no longer running ads tied to cryptocurrencies. Twitter is the latest to take action against crypto ads.

The company confirmed in a statement to CNNMoney Tuesday that it has banned ads for initial coin offerings and token sales.

Initial coin offerings, or ICOs, allow companies to raise money, often by crowdfunding, through the sale of their own cryptocurrencies or digital tokens.

Google said earlier this month that it will begin restricting some crypto ads in June.

And Facebook announced in January that it was prohibiting the sale of ads that "promote financial products and services that are frequently associated with misleading or deceptive promotional practices" -- which included ICOs and bitcoin.

Related: Google to ban crytpocurrency ads

The moves come as regulators around the world, including the Securities and Exchange Commission, warn that some ICOs are scams and have begun to crack down on alleged ICO fraud.

Some publicly traded companies have decided to cash in on the crypto craze. A small beverage company formerly known as Long Island Iced Tea Co. changed its name to Long Blockchain, and Kodak launched its own Kodakcoin crytpocurrency.

To that end, the Twitter spokesperson said the company would prohibit the ICO and token ads around the world to ensure "the safety of the Twitter community."

The ban on crypto ads are clearly taking a toll on bitcoin as well as other popular cryptocurrenies such as ethereum, litecoin and ripple.

But is the selling overdone? There is a difference between bitcoin and sketchy ICOs from tiny companies.

"There is no doubt that we are way oversold," said Naeem Aslam, chief market analyst at Think Markets, in a report Tuesday. He was referring to bitcoin and other major cryptocurrencies as well. And he thinks bitcoin may soon hit a bottom.

"Most of the investors that we are talking to, they only want to buy at [the} current price," Aslam said.

Bitcoin has plunged more than 40% this year. Prices were near $20,000 in December.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 488506

Reported Deaths: 33371
CountyConfirmedDeaths
Queens755437288
Kings737667374
Bronx546284980
Nassau488642204
Suffolk482342016
Westchester396941460
New York352493192
Rockland17453680
Richmond168601092
Orange13258502
Erie12574708
Monroe6850300
Dutchess5366163
Onondaga5121207
Albany3460136
Broome306083
Oneida2617128
Ulster242895
Niagara1986101
Putnam175563
Sullivan169448
Schenectady151650
Chemung13813
Saratoga122917
Rensselaer104742
Steuben89857
Chautauqua84513
Columbia65938
Ontario60335
Oswego5994
Tompkins5630
Madison54117
Greene48218
Tioga47825
Cortland4510
Warren44133
Cattaraugus4346
Wayne3935
Orleans37654
Herkimer37410
Genesee3725
St. Lawrence3724
Otsego3695
Fulton36024
Chenango3377
Cayuga3322
Washington32614
Montgomery2574
Livingston2568
Allegany2241
Clinton2205
Essex1940
Jefferson1930
Wyoming1725
Delaware1617
Seneca1313
Schuyler1040
Schoharie1010
Yates997
Franklin780
Lewis620
Hamilton160
Unassigned023
Utica
Overcast
59° wxIcon
Hi: 62° Lo: 56°
Feels Like: 59°
Oneonta
Clear
54° wxIcon
Hi: 67° Lo: 59°
Feels Like: 54°
Herkimer
Overcast
59° wxIcon
Hi: 62° Lo: 56°
Feels Like: 59°
Thendara
Overcast
59° wxIcon
Hi: 57° Lo: 51°
Feels Like: 59°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
VOTE OCTOBER 22-30
Saluting Those Who Are Proud 2 Serve
WKTV Golf Card - Under 150 left