Category: Facebook




$50B wiped from Tesla after BTC buy — but MasterCard and Twitter surge


Tesla’s stock fell 7% following its announcement that it invested $1.5 billion of its cash reserves in the cryptocurrency.

Electric car manufacturer Tesla has seen more than $55 billion wiped from its market cap since announcing the purchase of $1.5 billion in Bitcoin four days ago — but Twitter and MasterCard have headed in the other direction.

Since Tesla’s announcement on Monday, the electric car giant’s stock price has dropped 7% from $869.52 ($834.6 billion market cap). It is currently trading at $811.66 ($779 billion market cap).

While there may be other factors behind the share price drop, some investors, such as Baker Avenue Wealth Management chief strategist King Lip, are concerned that holding 8% of the company's cash reserve in a volatile asset is an unnecessary risk, stating:

“It will add volatility to the stock due to exposure to Bitcoin. This is better for Bitcoin than it is for Tesla.”

Tesla stock has been known to disregard the opinion of financial analysts in general with financial magazine Barron’s stating no more than 40% of analysts have rated its shares a ‘Buy’ since 2018.

Former Bernstein analyst and Bitcoin skeptic Gary Black stated two weeks earlier that he would sell his Tesla stock if they added Bitcoin to the balance sheet. True to his word, he announced his exit on Twitter, but also added that he will get back in:

Only 90 minutes later he revised his prediction for the carmaker’s stock to $960 dropping only $40 from the previous estimate of $1,000. This led some Twitter users to question if he really believes his figures since he had just exited his position.

Included in the sell-off was Elon Musk’s younger brother and Tesla director Kimbal Musk, who sold 5% of his shares for $25.6 million. Another director, Antonio Gracias, also sold more than 150,000 shares one day after the Bitcoin announcement, according to securities filings.

Despite the timing, there is no evidence that these sales are related to the recent Bitcoin news. And for that matter, it's unclear of what impact the Bitcoin buy had on the share price, given news also broke this week that Tesla had been called in by Chinese government regulators for talks over quality issues in its electric cars.

It's also clear that not all stock investors are Bitcoin-adverse. Social giant Twitter’s stock surged following comments that the firm might soon buy into Bitcoin. During an interview on CNBC’s Squawk Box on February 10, the tech firm’s chief financial officer Ned Segal said the company is considering adding the cryptocurrency to its own books and using it for Twitter employee’s salaries.

In the two days following the interview, Twitter stock rose almost 15% from $59.88 to $68.56, just shy of its all-time high of $69.

Similarly, MasterCard stock surged 4% following the announcement that it will support multiple cryptocurrencies on its network this week.

Big companies investing in Bitcoin will not necessarily translate to a much higher market cap: if Apple, Microsoft, Facebook, Twitter, MasterCard, and Google were to invest 8% of their cash reserves in Bitcoin, this would only translate into less than US$8 billion investment in total. That's less than 1% of Bitcoin’s current market cap. However, the signal it sends would likely drive other companies and retail investors to jump on the bandwagon.





A Look at Facebook’s Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection


A Look at Facebook's Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data CollectionDuring the last two years, there’s been a lot of interest in Facebook’s cryptocurrency diem (formally libra) and rumors of a nearing launch date went viral last November. Now the social media giant is advertising the crypto asset’s pre-sale heavily on the platform, as people can now purchase diem with U.S. dollars and three different […]


Privacy-Centric Messaging App Signal Experiments With Stellar-Based Mobilecoin Project


Privacy-Centric Messaging App Signal Experiments With Stellar-Based Mobilecoin ProjectOne of the most popular privacy-centric messaging applications Signal has seen explosive growth during the last two months over things like the Whatsapp acquisition and the recent Big Tech censorship. According to a number of reports, the company has been experimenting with monetization and more recently Signal has been reportedly testing the crypto network Stellar. […]





Noise.cash: Social Microblogging App Fueled by Bitcoin Cash Tips Gathers Traction


Noise.cash: Social Microblogging App Fueled by Bitcoin Cash Tips Gathers TractionFor quite some time now, bitcoin cash users have been leveraging the web portal read.cash in order to write blog posts, connect with like-minded individuals, and earn bitcoin cash for providing popular content. Now the creators of read.cash have introduced another application called noise.cash, which is similar to the parent platform, but allows people to […]



Crypto Industry’s Favorite Messaging App Telegram Surpasses 500 Million Active Users


Crypto Industry's Favorite Messaging App Telegram Surpasses 500 Million Active UsersTelegram, a popular messaging app within the cryptocurrency space, surpassed 500 million monthly active users during the first week of January, according to Telegram chief executive officer Pavel Durov. In the last 72 hours, said Durov, the app has seen a massive surge in new users, with an additional 25 million people signing up to […]


Crypto leaders worry over threat to industry from ‘big tech’ censorship


Social media users are leaving traditional providers in droves in favor of more independent platforms over fears of unwarranted data collection, censorship, and refusal of service.

A change to WhatsApp’s terms of service has triggered a mass exodus from the messaging platform to more private and independent rivals like Telegram and Signal, which have registered millions of new users over the last week. 

Rather than agreeing to new terms specifying the app’s right to share user data with Facebook, millions of WhatsApp users simply gave up using the platform, abandoning it for less-intrusive competitors. Telegram alone has been downloaded 25 million times in the last 72 hours.

Some of those new sign-ups include refugees from the free speech platform Parler, looking for a way to connect and organize after the right-wing Twitter alternative was suddenly yanked offline by hosting services provider Amazon Web Services (AWS).

The ability of web hosting giants like AWS to unilaterally close down sites and infrastructure has some in the cryptocurrency industry worried for the future health of blockchain-related projects.

Ethereum co-founder Vitalik Buterin described Parler’s takedown as “very worrying” in a series of tweets, noting that AWS was much more of a “common infrastructure provider” than a social media site. Buterin also expressed a certain level of dismay over Twitter’s decision to permanently ban President Donald Trump from its platform:

“The fact that so many people who would normally never support such corporate power are now cheering tech CEOs running roughshod over democratically elected officials deserves some introspection…”

In the past, estimates have suggested that around 60% of Ethereum nodes run on AWS.

EOS and Bitshares co-founder Daniel Larimer recently called for the mass abandonment of big social media platforms prior to the takedown of Parler. He correctly predicted that it may have been the “last chance” to download certain social media apps. Larimer recently quit his position as CTO at EOSIO developers block.one, vowing to work on censorship-resistant platforms which he believes will become increasingly important as more people find themselves banned or suspended from traditional platforms.

Other crypto projects are wary of the centralized nature of tech giants like Amazon and anticipate problems relying upon them. The decentralized liquidity network THORChain, for example, incentivizes nodes running its software to avoid AWS by awarding them extra perks for using alternative service providers.

Decentralized solutions providers, like domain name server Handshake, are censorship-resistant in that they avoid reliance on classical processes for domain name resolution. Pirate academic journal archivists Sci-Hub switched DNS providers using Handshake, as mentioned by Buterin.

Censorship concerns aren’t the only reason why reliance on a single hosting service provider poses risks to crypto-based services. In November, AWS outages affected Coinbase, causing users to have problems logging in to and navigating their accounts.


Big Tech’s Freedom of Speech Purge Pushes People to Censorship-Resistant Blockchain Social Media


During the last few days, the world has watched the Big Tech and social media crackdown after the incident that took place at Capitol Hill a few days ago. During the last 48 hours, U.S. President Donald Trump, a great number of right-wing supporters, and literally anyone who speaks out against the U.S. government has […]


Bitcoin Now Larger Than Facebook’s Market Cap — ‘Money Network More Valuable Than Social Network’


Bitcoin Now Larger Than Facebook's Market Cap — 'Money Network More Valuable Than Social Network'The surge in bitcoin’s price on Friday has propelled the cryptocurrency past Facebook’s market cap. Next, bitcoin stands to flip Tesla, Google, Amazon, Microsoft, and then Apple. Bitcoin Surpasses Facebook in Market Cap Bitcoin’s frequent rise past all-time highs this week has made the size of the cryptocurrency larger than Mark Zuckerberg’s Facebook. The price […]




9 Trillion vs. 100 Trillion: Billionaire Mike Novogratz Asks Which Cryptocurrency Will Win the Payments Race


9 Trillion vs. 100 Trillion: Billionaire Mike Novogratz Asks Which Cryptocurrency Will Win the Payments RaceOn December 31, billionaire investor Mike Novogratz asked his Twitter followers which blockchain coin has the best chance of winning the payments race and offered four choices. Novogratz said there are lots of “contenders” and listed off Facebook’s diem, tether, bitcoin cash, and Circle’s popular stablecoin. This week Mike Novogratz asked his Twitter followers out […]

The post 9 Trillion vs. 100 Trillion: Billionaire Mike Novogratz Asks Which Cryptocurrency Will Win the Payments Race appeared first on Bitcoin News.




IMF Cautions Central Banks May Have to Rethink What Constitutes Reserves


The IMF warns that central banks may have to rethink what constitutes their reserve currency holdings. In a recent study, the global lender points to the changing geopolitical landscape, technological advances and the impact of the Covid-19 pandemic as events likely to influence the composition of reserves. Advances in Financial Technologies In addition to the […]

The post IMF Cautions Central Banks May Have to Rethink What Constitutes Reserves appeared first on Bitcoin News.



By continuing to use the site, you agree to the use of cookies. more

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close