Crypto Markets Creep Higher as Facebook Admits Libra May Never See the Light of Day

Most of the top cryptocurrencies reported gains on Tuesday, though lower than normal trade volumes put a firm cap on the rally, as traders dissected the latest SEC disclosure from Facebook.

Crypto Market Update

Over the last 24 hours, the total cryptocurrency market cap has increased by roughly $3 billion to $267.5 billion. The top-five cryptocurrencies all rose, as bitcoin continued to consolidate higher. The largest and most influential cryptocurrency rose 1.1% to $9,664, according to according to CoinMarketCap.

Ethereum rose 1.3% to $212.86, XRP added 2.6% to $0.3180 and Litecoin climbed 2.4% to $92.02. Rounding out the top five is bitcoin cash, which rose 2.7% to $317.22.

All the majors have recovered from their most recent swing lows, but are down by at least a third from their yearly high.

Beyond the top five, EOS, Stellar and Monero all reported modest gains ranging from 0.5% to $1.2%.

The cryptocurrency market recovered slightly on Tuesday but is trading well below recent highs. | Source: CoinMarketCap.

Facebook Admits Libra May Never Launch

In its quarterly report to the U.S. Securities and Exchange Commission (SEC), Facebook acknowledged that its Libra project “will subject us to significant regulatory scrutiny and other risks that could adversely affect our business, reputation, or financial results.”

The filing continued:

“Libra is based on relatively new and unproven technology, and the laws and regulations surrounding digital currency are uncertain and evolving. Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue. As a primary sponsor of the initiative, we are participating in responses to inquiries from governments and regulators, and adverse government or regulatory actions or negative publicity resulting from such participation may adversely affect our reputation and harm our business.”

The social media company has faced considerable backlash since it unveiled Libra more than a month ago. Multiple jurisdictions are wrestling with the implications of a global cryptocurrency operated by the world’s largest social media network. The general consensus appears to be that that Facebook should halt all developments surrounding Libra until regularoy issues are addressed.

For these reasons, Facebook admits “there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.”

Libra is a contentious subject within the blockchain community. Crypto purists believe it is antithesis to the very foundation of decentralized, peer-to-peer payment systems. Others believe it poses no threat to bitcoin and could have a positive impact on adoption. Whatever the case may be, Libra likely won’t see the light of day anytime soon.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Charts via CoinMarketCap.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi