Most trending topic of 2018 and end of 2017 all over the world is cryptocurrency, who was taking over many investing options because of huge profit rate in very less time and in this Bitcoin is first ever cryptocurrency which was launched in 2009 by Satoshi Nakamoto from China and after that there was no improvement and better response seen in bitcoin for 6 to 7 year, breakout year comes i.e. 2017 where people starting gaining attention from investor and till end of this year many people who active on social network got to know about this market and following this some other new cryptocurrency are started launching, so along with Bitcoin people was starting investing into other coins, but after having awesome run in market of investment cryptocurrency marked dealing with back to back thread which result prices start falling and number of investors also start dropping and no one able to find out what went wrong, so below we have some possible reason for crash of market.
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Why is Cryptocurrency Going Down?
- China Banned Cryptocurrency: the country where crypto market is originated & have biggest market cap takes huge action after banning trading and mining of cryptocurrency in which all trading portal gets legal notice form government and following this reference of crypto market in social media and other online market is deleted by China which result market is collapsed because highest number of investor is from China and sudden drop in number causes loss and there are number of popular trading portal is from China only so trading is paused for few days, then lots of coins is originated from this country, lots technology server is in china so after shut down lots of things are replaced and this things happens suddenly which result market prices of Coins like bitcoin, Cardano and other started dropping.
- Google Ads Will not Show Cryptocurrency related Ads: Google Search Engine has highest number of user all over world and most trusted company in the world who also have service of Google Adsense in which Google plays middleware means they took advertisement from big company for e.g. Samsung launched new mobile S8 so to promote this handset they will make deal with Google and as they have thousands of publisher all over the world and then Google will display handset ads through publisher, so following this cryptocurrency ICO and other trading portal also gets promoted by publisher and on search page of Google when user search related to cryptocurrency, so after finding similar content people also showed good response by clicking them but just like social media there is also feedback form from Google adsense where they got feedback by user as well as they also check for how much time user who clicked on ads is staying and in other side there are lot of news about fraud, account getting hacked and other which resulting into Google takes action.
- Social Media Platform Discontinue Crypto Ads: for promoting any product or event social media consider as biggest platform every because billions of user worldwide is active frequently on this platform, so in this platform we have twitter, Facebook, Instagram and many other who stopped showing crypto related advertisement, as we know lots of newly launched crypto or trading portal sales of Initial coin offering or airdrop in promoted on such portal so number of reached on ads started decreasing resulting into newly launched coins and trading portal not properly promoted so no other option is remain and reason behind this social media crypto banned is many people started making fools to people as cryptocurrency market is not trusted or no one takes official responsibility of investment, so people who was victim of this cases started reporting to social media admin and after having huge number of report they finally decided to stopped this kind of ads and this become 3rd possible reason of price drop.
- South Korea: as per report South Korea is second most highest number cryptocurrency trading and there is huge difference between BTC/USD price to BTC price in South Korea which show how much this market popular in South Korea and there are many coins is originated from South Korea but after China banned trading some rumours started spreading about South Korea also taking same action because of which many investor started cashing out their money and that time on coinmarketcap.com we have seen another cryptocurrency crash happened.
- Pumping & Dumping: many of you heard about this for those who don’t know we have some explanation, as in pumping process founded try to create bubble in price with huge percentage of growth in which they invested huge money at a time or make partnership with big company so they will invest huge amount in their cryptocurrency, so sudden growth in market cap create price fluctuation and also price started growing with huge percentage and after seeking attention from investor they started getting number of investor and then again once investor numbers is stable price again stopped rising, so all this trick is no working right now as they already earn enough with this method and in other side dumping means whatever invested money is cashing out when price is on the moon, which result they get profit and other who don’t have idea about this faces loss in this market, so right now all this trick is very well known from investor and people stopped trusting on such event which result even there is growth in price, there is very few number of investor they get.
- Hackers Attack: another reason of price falling is security, privacy issue, as in previous few month billion worth coins are stolen by hackers as well as they also hacked trading portal API and account to transfer into another their account but because of lack of data and legality issue no legal action was taken, as many of investor who investing in crypto because they wanted to avoid tax and income report and in other side some of cryptocurrency Blockchain system hacked and lots of data also leaked which is really unsafe for any user which result people started losing trust and also cashing out their money.
Note: so this is possible reason why crypto’s are going down and mentioned report taken from different sources.