Facebook’s stock price has surged since it made the news for its cryptocurrency project announcement. Facebook’s stock price also remained unaffected as it is finalizing a monetary settlement with the authorities for its role in the 2016 US Elections.
The concerns against Facebooks’ data security and privacy policies are still rampant even over its new crypto project. Nevertheless, stock prices have continued to soar as investors still seem euphoric over the announcement.
Facebook’s Alleged Stint in the US Presidential Elections
Remember the allegations against Facebook data security and privacy flaws which allegedly aided Trump in the 2016 US Presidential elections?
Reportedly, Facebook could be fined about $5 billion to settle with the FTC. Moreover, Facebook was prepared for such an event as had already set aside $3 billion from last year’s profit to address the impending issue. Hence, the stock price remained unaffected by the blow.
The Federal Trade Commission (FTC) investigation against Facebook came to light in 2017 when Mark Zuckerburg was called for a statement. Cambridge Analytica, the research firm which was allegedly employed FB data to profile and influence voters with political messages was shut down in 2018.
Libra Propels Facebook Above $200
As reported earlier on Coingape, Facebook’s attempts with a decentralized cryptocurrency would be great to improve the image of the Social Media Giant. Furthermore, the monetary gains that FB stands to generate by employing Libra payments on its platform are also considerable.
Metlem Demirors, the Chief Strategy Officer from Coinshares, tweeted about the trader’s sentiments with Libra announcement. She said,
“investors looking at $ aren’t too concerned with what Libra is or is not. they’re interested in the monetization of Facebook’s users and profitability.”
Facebook’s stock price rose from June monthly lows of $161 to trade above $200 in less than a month. The stock price witnessed several positive gaps, which signaled a substantial positive momentum in the stock. Demirors noted,
since announcing Libra, Facebook $ has: – gotten favorable research coverage (BUY) from 10+ investment banks
– seen a 13% increase in stock price in 1 month (pre FTC fine today, which saw it go higher)
– added $69 billion to their market cap
the market seems to like Libra
Moreover, Facebook’s so-called ‘crypto’ plans have received criticism from both camps, the ones for cryptocurrency and the ones against. This is primarily because of Facebook’s privacy laws and concerns around the decentralization in Libra.
While the distributed consensus network with Libra attempts to take control from the Governments and Banking institutions, it is handing it over to a handful of Members of the Libra Association.
Do you think that Facebook will succeed with its cryptocurrency plans? What do you think will be the price of FB by the end of 2019?
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com