Facebook banning ICO ads is actually a good thing and some market regulations are more than welcomed so let’s break down five actual triggers that could cause a REAL cryptocurrency crash.
5) Even more harsher regulations
Every time a country announces new plans to take a stand against cryptocurrencies, the market takes a significant dip. That’s because not everyone who has their money in this market was an early investor and naturally, people don’t like it when someone is playing with their financial future.
Some of them sell out and leave for good and some will buy their way back in but it’s obvious that regulations are a big scare off for the market. If they become harsher, more people will lose faith and will be gone for good.
Yes, the Tether problem still needs to be addressed. Until now, if a cryptocurrency had a market cap of $1 billion, it did NOT mean that $1 billion has flown into that cryptocurrency until Tether came up and and said that each and everyone of their tokens are backed by a US dollar.
Since Tether is priced at around $1.6 billion, many started doubting this was true so the company agreed to do an audit. An audit that they later…cancelled. So Theter still remains a big problem since the scenario of it being used to pump a lot of other cryptos (including Bitcoin) still stands.
A lot of people used their bank accounts to purchase cryptocurrencies and apparently banks are starting to be less supportive when it comes to this aspect. Australian banks even took a step further by freezing all accounts related to cryptocurrencies activities and that’s a huge turn off for every potential investor.
Even more, the banks started blocking transfers to cryptocurrencies exchanges and this can be a model copied by other financial institutions as well.
2) More hacks
Any hack is bad news but when someone jacks $500 million worth of cryptocurrencies, that’s a financial disaster and unfortunately, it has become a trend in the crypto world. Just seems like every two months hackers race each other to see who can steal more and from whom.
That means, wallet developers and exchanges either find out a way to better protect themselves or bad news related to this will become a trend for this market.
Yes, exchanges and their fragile security are still a big problem. If any exchange runs into an issue, the cryptocurrency market is quick to face a dip so any bad news related to this sector will further impact the market.