Facebook (FB) Stock Plummets: Is a Facebook Cryptocurrency Coin the Answer?
Facebook Stock Plummets: Could a Facebook Coin Cryptocurrency Be the Answer?
Yesterday, Facebook experienced the world single day loss in the history of American stock markets, losing 20% of its market cap and erasing $120 billion in value. Today, Twitter’s stock took a similar tumble, plummeting 21% on the day.
It’s been a rough week for social media giants, but brighter times may be ahead. There are rumblings that Facebook could launch its own Facebook cryptocurrency – like a Facebook Coin – to attract new users and keep existing users coming back.
Facebook has long been rumored to be exploring the launch of its own cryptocurrency. Could a Facebook Coin cue the company’s recent woes? Could Twitter launch its own digital token? Would other social media companies follow suit?
Facebook’s stock plummeted after the company released a disappointing earnings report. That report showed missed expectations on revenue and very slow user growth. By the end of the day, Facebook’s stock had closed at a price of around $176, erasing virtually all of its gains since the beginning of 2018.
Twitter had a similar performance on Friday, dropping 21%. Facebook stock, meanwhile, did not bounce back on Friday, falling another 0.80% by the time the markets closed.
You don’t have to look far to find rumors of Facebook launching its own cryptocurrency. According to a report from Cheddar, for example, Facebook is very interested in launching its own cryptocurrency. It seems natural that Facebook would be interested in blockchain technology, given its potential in advertising sales and ID verification. However, it may take years until such a project gets off the ground.
Ironically, it wasn’t long ago that Facebook banned all crypto advertising. In January, Facebook banned crypto advertising from the platform while the industry dealt with scams and ICO fraud. Facebook recently eased those restrictions, allowing more legitimate blockchain and crypto companies to advertise on the platform.
Facebook’s Userbase is Declining in the European Union
Facebook’s userbase continues to grow, although it’s declining in key markets.
In the European Union, for example, Facebook has recorded declining userbases across the continent. Much of this decline is attributed to the European Union’s General Data Protection Regulation.
It’s easy to think that profits were the reason for the plummeting stock prices. However, the decline isn’t really attributed to falling profits. Facebook recorded total sales of over $13 billion, with a 42% increase in profit from a year ago. However, this increase is lower than what was predicted by analysts.
These disappointing profits, combined with stale user growth in North America and the decline in Europe, gave investors dim outlook for the world’s largest social media network.
Could Facebook launch its own cryptocurrency to impress investors and attract users back to the platform? Could Twitter launch a TwitCoin to expand its influence across the internet? As social media companies look for ways to innovative, launching a cryptocurrency might be the answer. If Facebook launches a cryptocurrency, it would become the world’s best-known cryptocurrency virtually overnight. It could become the de-facto currency for the internet.
Stay tuned for more information on whether or not Facebook, Twitter, and other social media giants will launch cryptocurrencies to combat their plummeting stock prices.