Research Shows That Social Media Influences The Bitcoin Price!

The value of Bitcoin may be manipulated by public sentiment from social media, new research shows. A four-university team, led by professor Feng Mai of Stevens School of Business, found that not only do comments influence the price, but some commenters can even carry up to ten times the weight of others.



Professor Feng Mai was working with University of Cincinnati, Dickinson College and Ivey Business School, collecting two years’ worth of posts from the Bitcointalk forum, as well as two months’ worth of data from Twitter.

“Any changes in Bitcoin’s price are obviously going to affect the sentiment around it, so we needed to factor in those influences as well,” Mai was quoted as saying on the website of Stevens School of Business.

The results of this research were recently published in the Journal of Management Information Systems, and show that “periods of increasingly positive social media commentary do in fact influence the rising price of Bitcoin significantly.” But the voice of those who do not regularly talk about Bitcoin, instead taking the time to comment infrequently, is what is actually moving the price. On the other hand, users who are very active did not move Bitcoin’s price much at all.

“This was a big finding, and it does seem to prove that people are trusting the silent majority much more, perhaps because they do not seem to have an agenda,” Mai said for the Stevens article, adding, “It’s also true that, by following the infrequent posters’ comments, you get a much more accurate prediction of Bitcoin’s price over time, and this is useful for investors and potential investors to know.”

The team hopes to investigate blockchain technology and its relationship with social media soon as well.

Meanwhile, the U.S. Commodity Futures Trading Commission has already urged customers to avoid buying tokens based on tips shared on social media. Moreover, anyone who promotes an initial coin offering (ICO) in exchange for compensation tied to the sale may be breaking the law if they don’t first register with the regulator, Richard Levin, Denver-based chair of fintech and regulation practice at law firm Polsinelli PC, told Bloomberg in a recent interview.

Also, as reported, John McAfee, a self proclaimed “crypto visionary” and software tycoon, said he will stop recommending ICOs because of unspecified “threats” from the U.S. Securities and Exchange Commission.


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Author: Sead Fadilpasic
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Facebook reverses its crypto ad ban!!

As there’s clearly too much ad revenue potential to ignore, Facebook today announced it’s reversing its cryptocurrency ad ban effective immediately. The decision comes with a few caveats, however. The company says it will allow ads and related content from “pre-approved advisers,” but will still not allow ads promoting binary options and initial coin offerings.



Facebook had first enacted the ban in January, saying at the time that too many companies in this space were “not currently operating in good faith.”

While it admitted that banning all crypto advertising was a broad change, the company said that its new policy would “improve the integrity and security of our ads, and to make it harder for scammers to profit from a presence on Facebook.”

But it had also said the policy would be revisited over time, as its ability to protect deceptive ads improved.

Fast forward six months, and apparently Facebook is ready for the crypto ad onslaught yet again.


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This time around, it’s making advertisers go through an application process to determine their eligibility. Facebook will ask advertisers to include on their applications details like what licenses they’ve obtained, whether they’re a publicly traded company, and other relevant background information regarding their business.

How thoroughly this information is fact-checked by Facebook staff remains unclear.
The company reminded users in the same announcement that they should continue to flag ad content that violates its guidelines. In other words, expect some bad ads to get through.
Facebook explains its new requirements will keep some crypto advertisers from being able to hawk their businesses on the social network, but adds that its policy in this area continues to be a work in progress.

“…We’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time,” says Rob Leathern, Product Management Director, in Facebook’s announcement.

Facebook’s original decision to ban crypto ads was followed by Google in March, when the company cited the “unregulated” and “speculative” nature of many of the advertised products. Its new policy begin this month. Twitter and Snap also have some policies around crypto ads, with Twitter only showing ads for exchanges and wallets provided by publicly traded companies and Snap allowing crypto ads but banning those for ICOs.

The crypto industry is rife with scams, so it makes sense that these major platforms would need some rules around what’s allowed. According to the FTC, consumers lost $532 million to cryptocurrency-related scams in the first two months of 2018, Coindesk reported on Monday. And an agency official warned that consumers will lose more than $3 billion by the end of the year.

Facebook says the full crypto ad ban is lifted today for approved advertisers.



Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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