IT Selloff Continues: Twitter and Facebook Still Did Not Find Support, Global Stocks Steady

Sale off of technological stocks continued yesterday. Twitter and Facebook, the biggest movers last week, could not find support yesterday; moreover, they fell by 7.7% and 2%, respectively. Both shares are in the oversold area, according to the RSI index that fell below the signal level 30 on the daily charts. However, the technical analysis points out that the proper moment to buy will only be when the current sales impulse will lose power and the RSI will return above 30.

Current sale of IT shares should be considered as a correction as this sector was the key driver of the market in the previous months. Twitter lost 27% in the latest three trading sessions, but this huge move returned the company’s capitalization to the levels of May.

Despite the tech sale on Monday, global stocks are trading steady on Tuesday morning with the European and Asian markets slightly higher.


Suggested Articles


The currency market

In the currency market, the dollar was under some pressure following the data that indicated a weakening of the inflation in the Eurozone. The slowdown in prices in Germany and Spain can be seen as a harbinger of the inflation easing in the entire euro region, the preliminary statistics on which will be published later today. Low inflation increases the real value of the investment in the euro and makes it a bit more attractive to invest in this currency at a time when the ECB intends not to raise the rate for at least a year. Against this backdrop, the single currency returned to the area above 1.17 and returned back almost completely its fall after the ECB press conference last week.

The currency market on Tuesday morning managed to avoid serious fluctuations. The Bank of Japan made only minor tweaks in its monetary policy, promising more flexibility in carrying out QQE and promising to keep the rates “very low” for some time, as the inflation is still far from the target 2%. The markets had feared that the Bank of Japan would start curtailing incentives aggressively, along with the ECB, which is reducing its asset purchases to the balance and with the Fed, which raises rates and reduces its balance. The simultaneous winding down of incentives from the “big troika” would be an even more serious test for markets that are already concerned about the uncertainty surrounding international trade policy.

This article was written by FxPro

Breaking News: China Manufacturing PMI Falls Short of Expectations for July

The major U.S. stock indexes tumbled at the start of the week with the selling led by a steep drop in the technology sector for a third consecutive session.

In the cash market, the benchmark S&P 500 Index settled at 2802.60, down 16.22 or -0.58%. The blue chip Dow Jones Industrial Average finished at 25306.83, down 144.23 or -0.57% and the tech-driven NASDAQ Composite closed at 7630.20, down 107.13, down 1.38%.

Facing pressure in the NASDAQ Composite Index were shares of Facebook and Netflix, which lost 2.2 percent and 5.7 percent respectively. FANG stocks Amazon and Google-parent Alphabet fell 2.1 percent and 1.8 percent respectively.

The FANG stocks weren’t the biggest losers on Monday, however. Shares of Twitter dropped another 8 percent. It was followed by a 7.7 percent loss in Take-Two Interactive, a 5.7 percent decline in Electronic Arts and a 5.5 percent pullback in Akamai Technologies.

Earnings News

Caterpillar said in its second-quarter earnings report that recently imposed tariffs will shave off between $100 million and $200 million from its bottom line in the second half. The company also reported better-than-expected earnings and raised its full-year outlook, however.

Economic News

Reports were scare on Monday with U.S. Pending Home Sales coming in 0.9% higher versus an estimate of 0.4%. It also reversed last month’s 0.5% decline.

Rattling investors, however, was a report by Reuters that Canada, the European Union, Japan, Mexico and South Korea will meet next week to discuss a response to threats made by President Donald Trump about slapping tariffs on U.S. auto imports.

Tuesday’s Early Reports

In breaking news, China reported on Tuesday that factory activity was slightly lower than expected in July, with the official manufacturing Purchasing Manager’s Index (PMI) coming in at 51.2

The Chinese manufacturing PMI had been forecast to fall to 51.3 in July from 51.5 in June, according to a poll of economists by Reuters.

China’s official services PMI also fell in July. The report showed a reading of 54.0 from 55.0 in June.

In Japan, the unemployment rate rose to 2.4%, versus a 2.3% estimate and 2.2% previous read. Preliminary Industrial Production fell by 2.1%, worse than the -0.3% forecast and -0.2% previous read.

In New Zealand, Building Consents fell 7.6% versus a 6.9% previous report. ANZ Business Confidence was -44.9. Last month the report was -39.0.

Australian Building Approvals jumped 6.4% versus a 1.1% estimate. However, the previous month was revised lower by 2.5%. Private Sector Credit hit the estimate of 0.3%, slightly better than last month’s 0.2%.

Social-Media Giant Facebook No Concern for True Technology Investors

Last Thursday’s “gap and go” sell-off in Facebook was ugly for long investors but it should only serve as a reminder of what could happen to any stock at any time, not just this social media giant. Furthermore, it should not be used as an indicator “of things to come” for the FANG stocks or the entire technology sector.

Sure, it could happen in other technology stocks because investors are loaded up on the long side in these stocks because for years, they have been the best game in town. So far this year, the tech-based NASDAQ Composite is up 12.1%, while the benchmark S&P 500 is up 5.4% and the blue-chip Dow Jones Industrial Average has posted a 3.0% gain.

Every time a revenue and earnings report is posted, investors run the risk that a company will miss on both sides, triggering a mass exit from the stock on profit-taking. Yes, profit-taking, not fresh short selling. That’s why savvy investors diversify their holdings.

Investors in a bull market are constantly looking for value. Some see higher prices in the future and decide to buy now in anticipation of higher prices. Some play for value and prefer to buy dips. With Facebook, investors perceived the stock as overvalued based on future growth projections so they took a little off the top.

The size of the sell-off was obviously a headlines grabber, but you have to look at who was behind the selling. It wasn’t mom and pop investors, nor was it all mutual fund sellers. They may have booked profits when the bad news came out, but the majority of the selling took place during the over hours market and it was primarily dominated by the over-weighted hedge funds.

According to a recent survey by Goldman Sachs, more than 10 percent of hedge funds counted Facebook as a top 10 holding.

The hedge funds were in massive long positions based on first-quarter regulatory filings. This was in contrast to the mutual funds, which have reportedly been trimming their positions in so-called FANG stocks since late 2016, the Goldman report said on Thursday.

In other words, the mutual funds were hit less-hard from the Facebook debacle than the highly speculative hedge funds.


Suggested Articles


Contagion Effect?

Firstly, let’s look at the weightings of the FAANG stocks – Facebook, Amazon, Apple, Netflix and Google (Alphabet) – in the NASDAQ Composite Index. Facebook is weighted 4.983 percent, Amazon 10.475 percent, Apple is 11.151 percent, Netflix is 1.834 percent and Google (Alphabet) is 5.134 percent.

It may be top-weighted in Amazon and Apple, but the others seem to be fine. A sell-off equal to Facebook’s move will, therefore, have a greater effect on the index then Thursday’s move in the social media giant. So the 1.06% loss in the index last week was relatively small when compared to, for example, the steep break in February.

Secondly, analysts are now saying that Amazon is beginning to decouple from the FAANGs. Remember that Amazon released earnings the day after Facebook. Although they were mixed, the stock still rose so there goes the contagion argument.

It looks like the contagion argument may be valid for Facebook and Twitter since both sold off sharply last week and they are both social media companies. However, given the history of the social media sub-sector (see AOL and Myspace), this can be a volatile group of stocks. It is truly an “only the strong survive” industry.

In conclusion, I have to say that based on the second-quarter earnings results, the technology sector is fine and should before well the rest of the year even with the “blip” on the chart from Facebook. As of Friday, earnings from more than half of the companies in the S&P 500 Index have reported, and so far 88% beat on earnings while 74% had better-than-expected revenue. Furthermore, technology stocks continue to look good, with 35 of 36 companies beating on the bottom line.

So when it comes to assessing the value of an entire sector, try not to get caught up in the headlines about how money was lost, and the historical size of the crash, keep an eye on the entire sector. Furthermore, if money leaves Facebook, a social media company, it may flow into other stocks in the sector including Microsoft, Apple, Netflix or Amazon.

What’s Next for Tech Stocks?

In the last week, Facebook Inc. grabbed the headlines once more and once again for all the wrong reasons, with Facebook’s market cap tumbling by over $100bn to sit just above $500bn, as Facebook shares slumped 19%, the market cap collapse being the largest in U.S market history, outdoing Intel’s $90bn tumble in the bubble bursting end of the dotcom era.

Tech Stocks Contagion

FAANG has taken the headlines by storm ever since the U.S equity market rally began, largely in response to the U.S Presidential Election result back in late 2016 and members of the FAANG group have certainly been a major influence in the direction of the broader tech sector and the major U.S and global indexes.

Facebook, Amazon, Apple, Netflix, and Google make up the grouping and the 5-stocks, alongside a more seasoned Microsoft, have continued to ultimately direct the tech sector, not just in the U.S, but also in Asia, where listed companies have significant reliance as a result of partnerships or sales revenues from one of the FANG Members.

Tech stocks have felt the contagion effect that has also weighed on the broader sector and indexes heavily weighted towards the tech sector. The supplier to Apple for instance also has a supplier and in there lies the contagion.

Facebook has faced a tumultuous time of late and, while there was some heavy fallout following the Facebook – Cambridge data scandal that certainly raises many questions over the future of social media platforms as we know it today, it was Facebook’s bread and butter ad revenue and user forecasts attributed to the data scandal that did the damage.

Facebook’s slide and influence across the broader market should perhaps be of greater concern to the U.S government, regulators and governments worldwide than the cryptomarket and future of blockchain technology.

With regulators and government groups tasked with assessing the broader cryptomarket reporting it poses little to no threat to the global financial markets, FAANG members are quite the opposite, with a vast majority of household portfolios holding one, if not all 5 stocks.

No doubt there have been some solid gains enjoyed by many, but at some point, what goes up must come down and as the tides of time shift, sentiment towards a certain platform can also shift and Cambridge Analytics contributed, though whether it’s the end of Facebook remains to be soon.

At the end of the day, while Facebook saw the biggest market cap slide in market history, long-term investors wouldn’t be at fault for missing the 20% share price slide when simply viewing the stock’s 52-week range, with Facebook Inc. still up 17.4% from its 52-week low $149.02.

Whether that brings complacency near-term, investors possibly viewing the stock as being simply 20% cheaper remains to be seen, but it wasn’t long ago that Google faced the wrath of EU regulators, with a fine more akin to the size of fines that European banks coughed up to U.S regulators off the back of breaches to SEC rules and regulations.

While U.S regulators have earned their crust fining European banks by hefty sums since the Global Financial Crisis, European regulators have found a way to hit back and that’s never going to be a good thing for an already fragile sector.

Trade War – Can It Hurt Tech Stocks?

If there was a time when the markets would have preferred the U.S president to let things be, the added attention from Trump and the administration on the tech sector and China’s reported interest and access to U.S tech companies has been another issue faced by investors favouring a sector that has certainly seen a solid run over almost 2-years.

Trump’s trade war with China has left the tech sector heavily exposed and the decision by the U.S to refute China Mobile’s request for entry into the U.S, which comes in the wake of U.S hitting China’s ZTE with sanctions that almost buried one of China’s largest tech companies, has only added to the pressure faced by tech companies.

Tariffs on Chinese goods and expectations of a technology decoupling between U.S and China tech companies is a factor that will add to the pressure. Trump has cited national security as the main reason behind the shift in attitude towards China’s tech companies and to be fair, foreign ownership in anything tech related, particularly the telecoms, should be an issue for any nation and national security and even more so when considering the fact that the cost of cybercrime is estimated to hit $6bn by 2021, quite a jump from $3bn in 2016.

The U.S has plenty to be concerned when considering the fact that both China and Russia share 3rd position behind the U.S and Israel, on best offensive cyber capabilities, the irony being that it was at Russia’s hand that Trump managed to squeeze past Clinton on his way into the Oval Office. Ironically, tech stocks might be a crucial part for a solid national cyber warfare.

Will Twitter and Facebook recover?

With so much uncertainty and sky-high valuations amongst the FAANG stocks, Apple Inc. is in focus this week, with its earnings results due out after the market close on Tuesday 31st July, with Apple Inc. enjoying a consensus buy recommendation ahead of the earnings, based on revenue EPS forecasts.

Not too dissimilar to Facebook and even Twitter, which plunged 20.54% on Friday, in response to a reported slide in monthly users, with warnings of more declines to come in the coming months weighing on investor sentiment, Twitter user numbers have been key to valuing the company and not the platform itself.

Looking away from Social media and stocks that have a heavy reliance on FAANG earnings and growth potential certainly looks to be the way forward for now and, with the trade war showing few signs of coming to an end, tech stocks with a heavy reliance on China, either as a sales market or as a supplier may also need to be carefully considered with the bias towards the negative until there is some resolution to the ongoing trade war.

Social media platforms are beginning to lose popularity at the pace at which they rose in the early years and, while there may be some support from the sheer volume of users, the market’s choice of Facebook and other FAANG members as the tech sector’s barometer may well need to change sooner rather than later.

Treasury Yields Drop Amid Concerns Trade Disputes Will Slow Economic Growth

A government report released on Friday showed that economic growth jumped in the second quarter at its fastest pace in nearly four years. According to the Department of Commerce, U.S. Gross Domestic Product rose 4.1 percent, its best pace since the third quarter of 2014 and the third-best growth rate since the Great Recession. The GDP number matched expectations from economists and was supported by an increase in consumer spending, exports and business investment.

In other economic news, U.S. consumer sentiment declined in July according to the University of Michigan. The index fell to 97.9 from 98.2 in June, as both the assessment of current economic conditions and expectations fell. Economists had forecast a 97.3 reading.

U.S. Treasury Markets

Despite the strong growth in the economy, which should have raised expectations for additional rate hikes by the Fed later in the year, U.S. Treasury yields fell on Friday as investors questioned whether the high growth rates will be sustainable especially in light of historically low levels of unemployment.

Investors followed in line with the thinking of U.S. Federal Reserve officials who are less certain GDP can remain above 4 percent. The central bankers forecast GDP to rise 2.8 percent for all of 2018 but then to tail off to 2.4 percent in 2019 and 2 percent in 2020.

The yield on 10-year Treasury note settled at 2.958, down 0.017, while the yield on the 30-year Treasury bond settled at 3.085, down 0.016.

U.S. Equity Markets

The major U.S. stock indexes finished lower across the board on Friday. Investors set aside the robust GDP report, choosing instead to focus on earnings.

In the cash market, the benchmark S&P 500 Index settled at 2818.82, down 0.7 percent. The blue chip Dow Jones Industrial Average closed at 25451.06, down 0.30% and the tech-driven NASDAQ Composite finished 1.49% lower at 7736.98.

Technology stock earnings continued to remain in focus. Contributing the most to the decline in the NASDAQ Composite were an 8.5 percent decline in shares of Intel, and 20 percent loss in shares of Twitter.

At the end of the week with over 50 percent of S&P 500 companies reporting earnings, 79.8 percent have reported better-than-expected earnings, according to data from FactSet.

U.S. Dollar

The U.S. Dollar fell against a basket of currencies on Friday, helped by the decline in U.S. Treasury yields. The drop in yields was in response to concerns that current GDP growth is unsustainable as lingering trade tensions are likely to be a drag on the economy in the second half of 2018.

The Euro finished slightly higher against the dollar following its steepest one-day loss in a month in reaction to the European Central Bank on Thursday reaffirming its plan to slowly end its accommodative monetary policy.

US GDP Grows at Fastest Pace Since 2014; Stocks Weaken as Twitter, Intel Disappoint

U.S. equity markets retreated, Treasury yields fell and the dollar weakened despite a U.S. Gross Domestic Product report that showed the economy grew at a robust 4.1 percent pace in the second quarter. While posting its best performance since 2014, the report also raised hopes that the economy was positioning itself for even better numbers in the future as it pulls out of an almost ten-year range.

One reason for the muted response to the strong figure was that it met economist expectations. Another reason may have been that it represents “stale” data now that we’re almost 30 days into the next quarter.

The 4.1 percent pace represents the fastest rate of growth since the 4.9 percent in the third quarter of 2014 and the third-best growth rate since the Great Recession. Furthermore, the Commerce Department also revised its first-quarter reading up from 2 percent to 2.2 percent.

The main catalysts behind the strong growth were increased consumer and business spending. Increases in exports and government spending also helped support growth. According to data, personal consumption expenditures rose 4 percent while business investment grew 7.3 percent. Federal government outlays also jumped by 3.5 percent.

Analysts said the jump in exports was related to increased activity by farmers who rushed to get soybeans to China ahead of expected retaliatory tariffs.

Data also showed that GDP would’ve been higher if not for declines in private inventory investment and residential fixed investment.

Aiding in the surge in growth were the tariffs as well as the massive tax cut enacted earlier this year.

Other U.S. Economic Reports

U.S. consumer sentiment declined in July according to the University of Michigan. The index fell to 97.9 from 98.2 in June, as both the assessment of current economic conditions and expectations fell. Economists had forecast a 97.3 reading.

“Despite the expectations of higher inflation and higher interest rates during the year ahead, consumers have kept their confidence at high levels due to favorable job and income prospects,” the University of Michigan said.

U.S. Equity Markets

The major U.S. equity markets are trading lower shortly before the close on Friday as the strong U.S. economic growth report took a backseat to poor earnings from Intel and Twitter.

Late in the session, the benchmark S&P 500 Index was trading about 1 percent lower. The blue chip Dow Jones Industrial Average was down nearly 0.50 percent and the NASDAQ Composite was off about 1.60 percent.

Intel declined more than 9.5 percent after announcing delays on its next generation chips. The company did report better-than-expected earnings, however.

Twitter, which reported earnings that matched expectations, dropped more than 19 percent after it said its number of monthly active users fell.

Study Proves That Bitcoin Prices Are Highly Influenced By Social Media’s “Silent Majority”

The researchers claim that positive comments about the cryptocurrency by users on social media platforms are likely to increase the upside potential of the cryptocurrency. Bitcoin is arguably the most popular and most controversial cryptocurrency in the market and this has a lot to do with it being the first digital coin to be launched. Its performance has attracted world recognition. For example, it was valued at around $500 in 2014 and it managed to surge above $19,000 before losing its gains and is now valued at around $6,200.

The team of researchers involved in the study at the Stevens Institute of Technology discovered that the value of Bitcoin can be manipulated easily through public sentiments especially through social media. However, according to the research findings, it is the silent majority that has a bigger impact on the price of Bitcoin and not the vocal minority.

The team of researcher involved in the study was led by Professor Feng Mai. The professor and his team were determined to prove his theory that periods characterized by a lot of positive sentiments had an influence on the surging Bitcoin prices.

The comments and tweets posted by highly active users on social media platforms do not have much of an impact on the price of Bitcoin. However, comments by the silent majority usually cause a significant impact on price movement for the cryptocurrency. The researchers compiled and evaluated data collected over a span of two years from Bitcointalk, the most popular Bitcoin forum in the world.

How the researchers came to the conclusion?

The collected comments were grouped into positive, negative and other categories based on sentiments through natural language techniques. The researchers also collected Twitter data spanning months. This includes more than 3.4 million tweets about Bitcoin. The changes to the price of Bitcoin were also compared to the type of conversations happening around the time of the changes. The team of researchers involved in the study also discovered that the price of Bitcoin can also affect the type of conversations taking place on social media platforms especially the talk by those who frequently post content related to Bitcoin.

“Vocal users of social media may sometimes have a certain agenda, in this case hyping or boosting the price of Bitcoin because they themselves have invested in it,” stated Professor Mai.

The professor further pointed out that most of the comments relating to Bitcoin on social media are biased because they were posted by people who have invested in the cryptocurrency. This means that they do not reflect the actual value of the cryptocurrency. The researchers concluded from the study that the silent majority are the real influencers. This is the first research study proving the link between social media and the price of cryptocurrencies such as Bitcoin. Social media thus plays a significant role in the price of digital coins.

Top Three Trends in Crypto to Watch Right Now

By now, just about everyone has heard of cryptocurrency. The global crypto industry is evolving at a rapid pace and trends are changing constantly. As the co-founder and COO of BitcoinIRA.com, the world’s largest and most secure cryptocurrency IRA platform, I am acutely aware of how quickly space is changing. From changes in regulation to widespread adoption of blockchain technology, here we will explore the top three crypto trends to watch right now.

  1. The regulatory and decentralized technology sectors are working together

2018 has been a year of regulatory measures for the cryptocurrency space. In March, the SEC released a statement requiring all crypto trading platforms to register with the SEC as securities in order to continue operating. Also this year, Facebook, Twitter, and Google all placed bans crypto advertising.

Many crypto enthusiasts, who flocked to this formerly unregulated sector because of its decentralization and anonymity, initially feared that the increase in regulatory measures would infringe upon all they valued about crypto in the first place. But with time, it is becoming clearer that this is not the case: in fact, the regulators and innovators in the decentralized technology space are in fact working together.

In February of this year, Chairman of the CFTC J. Christopher Giancarlo set the precedent for a cooperative relationship between the two sectors when he advocated for a “do no harm” approach to regulating cryptocurrency. “I believe that ‘do no harm’ is the right overarching approach for distributed ledger technology… With the proper balance of sound policy, regulatory oversight and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity,” Giancarlo said.

While this may have seemed idealistic at the time, the government’s regard for decentralized, distributed technology has actually stayed relatively consistent over the last several months. Just last week, William Hinman, the director of the division of finance for the Securities and Exchange Commission (SEC) publicly declared that Ethereum is not a security. This came on the heels of a similar statement that SEC chair Jay Clayton made in April. “Based on my understanding of the present state of ether, the Ethereum network, and its decentralized structure, current offers and sales of ether are not securities transactions,” Hinman said. “And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in ether would seem to add little value.”

In turn, Joe Lubin, co-founder of Ethereum and founder of major Ethereum application company ConsenSys, expressed gratitude for the SEC’s decision. “Ether and other next-generation consumer utility tokens will continue evolving the web towards networks that are more fair, secure, and evenly distributed. ConsenSys looks forward to continuing to engage with regulators around the globe to promote responsible adoption of this transformative technology” Lubin said, demonstrating the decentralized sector’s commitment to cooperation and transparency.

In my opinion, these announcements clear up some of the “regulatory uncertainty” that Tom Lee thought to be contributing to price stagnation in the crypto space and are a big win for the crypto industry as a whole.

  1. ICOs have taken a hit.

According to ICOData.io, ICO funding decreased from roughly $1.48 billion in January to around $288 million so far in June. June isn’t over yet, but that is a huge decline and cannot be ignored.

The SEC still considers most tokens purchased through ICOs to be securities, and that looming threat of regulation has likely discouraged some investors from participating in funding rounds.

Additionally, the SEC has cracked down on fraudulent ICOs in recent months, even going as far as launching its own illegitimate ICO as a warning to potential investors. Moreover, The Wall Street Journal conducted an investigation into ICOs and discovered that investors sank more than $1 billion into 271 ICOs that had clear red flags. All of these factors have likely played a role in the decrease in ICO funding across the industry. It is possible things will pick back up once the dust settles, but for now, launching and promoting a successful ICO is going to be an uphill battle.


Suggested Articles


  1. Blockchain technology is on the rise.

There’s a misconception among those that are new to crypto that blockchain technology is only used for decentralized digital payment transactions, and that’s just not true. Blockchain technology can be leveraged for a variety of purposes, tracking transactions of all kinds, and it is soaring in popularity. The size of the global blockchain market is projected to reach $2.3 billion by 2021 and some of the world’s most prominent companies are already leveraging the emerging tech. One particularly exciting example is IBM Blockchain, a platform that enables companies from a wide range of industries – from retail to insurance – to reap the efficiency and transparency benefits that blockchain offers. And just yesterday, retail giant Walmart was awarded three blockchain-related patents. The first is for a medical records system that would enable patient data to be stored in a distributed ledger. The second is for a blockchain-based energy network, and the third is to allow consumers to securely control or limit access to a real or virtual space by leveraging cryptographic keys stored on a blockchain. So why does this matter for crypto? Because blockchain and crypto go hand-in-hand, so increased adoption of blockchain is inherently good for crypto.

These three trends will likely continue impacting the crypto industry in the coming weeks and months, but as with anything in crypto, there’s no telling what will happen next. The only thing we know for certain is that you can’t be certain of anything – and to me, that makes coming to work each day extremely exciting.

This article was written By Chris Kline, Co-founder, and COO at Bitcoin IRA

Interview with Ke Xu, CEO & Founder of ONO

  • How was the idea of ONO born?

I think to a large degree, ONO is the culmination of my career, which began with Bitcoin, and was furthered by social networking. I started out with cryptocurrency during my university days, back in 2013, when I had purchased mining rigs with a friend and began mining Bitcoin. We’d amassed as many as 20,000 BTC, which at the time was a small fortune, and had ended up selling it off as the value of BTC rose. Back then BTC was valued between $600 to $700 USD, and we figured it might peak, then again, hindsight is 20/20. That experience first gave me the taste of not just cryptocurrency itself, but also the blockchain technology that Satoshi had first introduced through Bitcoin. Ultimately it was the technology that I’d seen the potential in, and would later become a core part of how we’ve developed ONO.

After graduating from university, I launched a social network called ERA, which introduced the idea of rewarding the community members based on the user’s contributions, skills, and social clout. It was an early example of a novel concept that of rewarding content creators, amid major social networks that were entirely focused on monetizing its user’s data. The ERA was a novel concept at the time and attracted 10 million users before we’d sold it to Cheetah Mobile.

Following the acquisition, I started Nome Tech, which gave me the chance to return to my blockchain and cryptocurrency roots. We began developing blockchain apps, and our first hit was CryptoDogs – the Chinese equivalent of CryptoKitties.

But it was from here I realized, with the way social networks were becoming bigger than themselves, and the power of these social networks were centralized in the hands of their creators, the easy route toward monetization was by taking advantage of user data, while acting as a publisher while offering the original content creators little-to-nothing in return. So this is where I saw an opportunity to radically change how social networking was governed, and thus ONO was born.

  • Can you explain your product to people?

ONO is the first global decentralized social network. From its interface, ONO offers similar services that you’d find on average social networks. Core features include messaging, in-app games, and public posts – similar to what you might find on social networks like Twitter or Facebook.

But its underlying governance and reward system sets ONO apart.

Ultimately, in the nature of decentralization, ONO is governed by its users, who can vote through a referendum (a feature within the app itself) to dictate future features, how illicit content is managed, and more. At the same time, we reward users that share high-quality content with ONOTs, which is our virtual currency and can be used to buy and sell virtual goods within the platform.

  • As the company had successfully fundraised through a presale, what has already been done and what are you going to create from the money collected through the ICO?

We recently announced $16 Million in Series A funding from leading traditional and blockchain VCs including INBlockchain, China Growth Capital, Purple Cow Fund, Green Pine Capital Partners, Korea Investment Partners and Grand Shores. However, we didn’t initially go the ICO route, although these days it seems to be the easy way out, but for a few good reasons.

The future of our social network and community lies in a community that believes in our vision, which is to build a decentralized social network. However because the power of influencing the future of ONO lies ultimately in the hands of its elected Super Partners, and these Super Partners are elected by community members who vote using ONOTs, we didn’t want to give speculative crypto owners the opportunity to manipulate the economy, and instead initially opted to raise our funding from traditional VCs.

However, more recently we had discovered an aggressive black market of speculators selling ONOTs solely for its cryptocurrency value, so we’re planning on combating this by offering a pre-sale of our ONOT token, which we anticipate will restore balance to our community.

  • How does ONO differ from similar services? How can your innovative service change social networking, particularly in China?

Unlike any social network available today, ONO’s governance is centered around a group of 51 individuals, we refer to as Super Partners, who are elected through community votes. These people are what you could consider as power users who would collectively decide on new features, how illicit content within the social network is managed, and more.

At the same time, with our vision to build a community based on a reward system that incentives quality content, ONO rewards users that consistently share high performing content on their channels with ONOTs.

  • ONO will launch its service through the EOS platform; how significant is that for your investors?

While we’re in the running for EOS, and we’re excited for the possibilities that EOS offers to its partners, we’ve ultimately decided to establish our own Mainnet using the EOS.io open source software.

  • How can anyone join ONO?

Currently ONO has 280,000 users, but in the vein of ensuring that our initial early adopters are a group that would build an engaging community, in fact, our app is only available as an invite-only beta, which you can apply to join through our website, ono.chat.


Suggested Articles


  • Why did you need a Token Sale?

Our token, the ONOT, was being sold on the black market by speculators, and as a measure to combat and curb any opportunities for individuals to game the system, we will be offering a token sale to users.

  • What are your plans for the future?

We’re excited to see the rapid adoption of ONO, even among beta users, and we’re planning for the upcoming launch of the international version of ONO in the coming month. At the same time, with international investors, and users, we’re looking to expand the team to further build out a global ONO ecosystem.

U.S Dollar Strong as Treasury Yields Rise, Earnings Reports in Focus

A busy earnings reports week is ahead of us with Alphabet, Facebook, Twitter, and other tech giants in focus. Existing Home Sales numbers will come from the States today. The ECB is later this week. And the U.S will publish GDP results on Friday.

Cautious Mode Greets European Markets, German Manufacturing Improved

European equities have started tentatively, proving broad market sentiment remains in a cautious mode. The Footsie and Dax have not been able to make significant gains, even as their respective currencies have become cheaper. The Pound and Euro remain under pressure against the U.S Dollar and are testing important support levels. German Manufacturing figures were better than expected via the Purchasing Managers Index, and Services numbers provided a slightly better result than forecasted. Wall Street struggled on Friday and is expected to have moderate losses when the three major Indexes open via early calls from the Futures Markets. Asian stocks declined slightly today, with the Nikkei and Hang Seng losing ground.

A busy week starts today with Google, Facebook, Amazon, eBay, Paypal, Twitter, Microsoft and more will release first quarter reports.

European Central Bank Plays Waiting Game, Patience Needed for Reversals

The U.S Dollar has been strong the past few trading sessions, which opens the door to speculative action developing the remainder of this week. The European Central Bank will make its Monetary Policy pronouncements and hold their monthly Press Conference on Thursday. However, in developing news the ECB has let it be known via leaks, that it wants more time to analyze the economy of the European Union and will sit tight with its polity until July. Recent inflation data from the continent has been soft. Traders seeking reversals in forex will need to practice risk management over the next several days, and they should also keep in mind U.S Gross Domestic Product numbers will be released this Friday which will certainly shake the broad markets.

Analysts Clamoring for Higher Crude Oil, Buyer Active in Energy Sector

U.S Crude Oil is challenging long-term values and is attracting attention from a variety of commodity players. Hedge fund analysts are clamoring around the commodity with the belief it could climb up to 80.00 U.S Dollars per barrel. For the moment U.S Crude Oil is near 68.00 Dollars and should be monitored.

Canadian Wholesale Statistics, U.S Manufacturing & Services Data Coming

Existing Home Sales data will come from the U.S at 14:00 GMT and investors will be interested to see the report’s outcome.

  • 12:30 PM GMT, Canada, Wholesale Sales
  • 13:45 PM GMT, U.S, Flash Manufacturing PMI
  • 14:00 PM GMT, U.S, Existing Home Sales

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

Bitcoin Out! Why Google Finally Banned Bitcoin Advertisements

The crackdown on cryptocurrencies has begun. From Facebook and Twitter to Google – advertising Bitcoin and cryptocurrencies have been banned! Just days ago, Google decided to also ban and remove all crypto mining extensions for their browser Chrome, writes Coindesk.com.

The rumor mills are as always running at full speed in forums and everyone has their own conspiracy theory for why these social media giants and now Google have decided to pull the plug on these types of advertisements. If you want the real reason which led to the ban, you have to first understand the big bad world of scammers. In this article, we will shed light on the issues that led to Google’s decision and why this could actually turn out to be a good thing for cryptocurrency investors and the community of traders!

Cryptocurrency Robot Scams – Tip of the Iceberg

One of the biggest issues with “free advertising” is that anyone can push anything they wish to fulfill their own agenda. In today’s world where Facebook was forced to create ‘fact checkers” due to being accused of promoting fake news that may have affected the outcome of the previous U.S election, you can be sure that misleading ads are also being pushed by financial crooks.

Speaking of fake news and misleading advertisement, cryptocurrency robot scams are the most common among Bitcoin Trading Scams. Such services always guarantee easy money with cryptocurrencies and the Google AdSense has been plagued with endless numbers of fraudulent cryptocurrency trading ads. These scams are in the majority of cases not even actual cryptocurrency trading software but offer CFD’s trading with an unregulated broker. The scam robots often use popular and catchy names such as the Bitcoin Robot, Bitcoin Bonanza, Bitcoin Millionaire or Bitcoin Code as reported by ThatSucks.com.. Who is behind these robots is never known. It could be an unlicensed broker or a rogue affiliate who runs many types of different financial scams on the internet. Since it is fairly easy for scammers to set up robot scams, thanks to white-label robot services, they constantly re-brand and create new robots. This happens so often that massive numbers of traffic are being directed to scams instead of trusted services.

What would you do about millions of “easy money ads”? Ads which all have one thing in common; they offer extreme wealth with zero risk and no prior knowledge and target newbie investors. This has to stop of course and the easiest way is to ban the cryptocurrency investment ads altogether! I say again, most of the ads are directing traffic to bucket shops where investors lose a lot of money. Therefore, a ban can save investors from getting ripped off. Instead of getting lured in by an ad, people interested in trading and learning about Bitcoin and other altcoins will have to seek information first. With the scam ads removed, there is a bigger chance that new investors end up finding well-established and prominent cryptocurrency websites and trading-related forums with valuable and honest education and offers. This seems like a positive step forward.

Join our Telegram Channel

Initial Coin Offerings – Educated Investment or Just FOMO?

In a cryptocurrency market that is heavily driven by FOMO – Fear Of Missing Out, many investors make instant and very costly financial decisions. One of which is investing in ICO’s, Initial Coin Offerings. Today, there are services that allow you to create and run your own ICO within minutes! This is both amazing and scary at the same time. It is amazing from a technical perspective but scary that anyone can set up an ICO with no actual value and then run away with the investor’s funds. Now let’s also add to this, the well-known fact that ICO’s can raise 10’s of millions within hours of launching, it should be a no-brainer that it certainly has and will keep attracting scammers. Restricting ICO ads could restrict scammers from attracting beginners by spamming ads on social media and other platforms using AdSense. As a result, it could leave more room for professional and original ICO’s to dominate the market for new tokens and innovations.

Mining Scams – Is Your PC Infected?

Another big step taken by Google to protect the average surfers was to ban and remove all mining extensions for their browser Google Chrome. The reason for this move is “Cryptojacking” which is a process where a malicious extension runs in the background, using the surfer’s CPU to mine one or various coins for the issuer of the extension without the user’s consent, as it was reported at news.bitcoin.com. There is a debate of whether this really is profitable for the crypto jackers or not. Regardless, if something steals your power and slows down your PC it is called a virus and who wouldn’t want to get rid of it? I for one don’t want a slower computer and a higher electricity bill so I’m glad Google is taking actions.

There is Hope – New Policy Updates!

In June 2018, Google will restrict their policies for advertising financial services.

– Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice)

advertisers offering Contracts for Difference, rolling spot forex, and financial spread betting will be required to be certified by Google before they can advertise through AdWords. Certification is only available in certain countries” – Google Adwords Policy

Well, turns out it’s not all bad news. On the contrary, this is a big plus! Advertisers will be offered to apply for certification. For example, exchanges and brokers who wish to offer cryptocurrencies must obtain a license from a financial regulator in the country/countries they are targeting before they can run ads. In addition, they must ensure that they comply with all the Adwords policies. The process for requesting certifications already started in March 2018. This should give regulated services enough time to apply for a certificate.

As you can see, this is not a war against the blockchain industry. Cryptocurrency and trading-related ads will not be totally banned but rather just restricted. With fake ads not being able to spam the web, there is hope that regulated and licensed financial services will have an advantage over the scammers.

Not a Fight against Cryptocurrencies

After going through the facts, it is obvious that there are problems in the world of cryptocurrencies. It’s all still in the beginning stage and with new technology and new investment opportunities, new types of scams also follow. Something needed to be done. At first sight, anyone who doesn’t know about all the scams in this industry might think that this is yet another blow by the “big boys”, the bankers, the governments and the social media giants because “they are scared of blockchain technology and wish to stop it”. As I mentioned earlier, there are many rumors like that and many pessimists are angered by the recent policies. However, reflecting on the problems we discussed in this article, it is not too hard to accept the steps taken by Google and other platforms. Remember that this is not a total ban and blockade against cryptocurrencies. Because reliable and licensed services will still remain in business with certified ads.

The next time you see an ad after the new policies kick in, another banner with a catchy name tempting you to click on it to earn money with Bitcoin, Forex trading or any other financial business, you can be sure that the people behind it are licensed and regulated and the ad is certified by Google. You can also view this as a step that encourages more and serious investors into the market – people who used to be reluctant towards investing due to all the scams. In conclusion, knowing the market is regulated and monitored can only benefit the future of cryptocurrency and trading industry.

Crypto Update: Sentiment Takes New Hit in Digital Assets, Ripple Continues to Fall

And Litecoin has taken a hit in value upon LitePay announcing it will be closing its payment business which was closely associated with the digital asset.

Twitter Makes Ban on Crypto Advertisements Official, LitePay Closes

As reported here last week, Twitter has made their cryptocurrency advertising ban official. Digital assets which struggled most of the weekend took another additional fall on Monday. Prices in the crypto market have continued to see a lack of buyers step in, and this has increased pressure on the downward spiral of moving averages across the board. And in developing news, Litecoin has fallen in value, as one of its key payment processor’s known as LitePay abruptly closed its business yesterday.

XRP Feels the Heat of Declining Values, Ripple’s Fall in Price Continues

Ripple’s XRP coin has not been able to break free from a negative trend which has shadowed it since early January. The cryptocurrency is near fifty-six U.S cents and crucial support remains near the forty-three cents level. Resistance appears to be around seventy-six cents for Ripple. After breaking through the one dollar barrier in late December and surging past two dollars on euphoric buying, Ripple has seen its XRP coin struggle and it is now approaching values not touched since the broad market cryptocurrency frenzy erupted. A fall to the forty-three cent support juncture would not be devastating for Ripple, but it would sound a loud alarm in the digital asset sector.

Ripple Daily Chart
Ripple Daily Chart

Sentiment Hurt by the Sudden Closing of Payment Service

While talking about a growing regulatory and supervision stance from governments may benefit cryptocurrencies in the long term, traders continue to be confronted by winds of discontent – caused by stories which continue to emerge unexpectedly. Yesterday’s closing of LitePay may not be a danger to the heart, but Litecoin is approximately the fifth largest valued cryptocurrency among the digital assets. And the closing of a payment service closely related to Litecoin will hurt overall sentiment near term.

Los Angeles Blockchain Event in Early April

From April the 4 through the 5th the CryptoBlockCon will be held in Los Angeles and will include discussions on Blockchain and Initial Coin Offerings.

  • April 4-5th, U.S, CryptoBlockCon in Los Angeles

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

Crypto Update: Cryptocurrencies Rise Again as G20 Calls for Regulation

The G20 meetings in Argentina have finished and did not produce a unified mandate regarding cryptocurrencies which may have helped nervous sentiment in the market calm. Twitter has announced a ban of crypto adverts which will start in two weeks.

Cryptocurrencies Escape Sharp Claws of Governments at G20

While governments participating in the G20 meetings certainly spoke about the need to create recommendations to monitor criminal activity in cryptocurrencies,   the lack of a call for unified action helped nervous speculators rest easier. Bank of England Governor Mark Carney also was quoted as saying cryptocurrencies do not pose a serious threat to the broad financial markets. However, Carney’s comments may prove to be a backhanded compliment, because while he has said Blockchain offers an interesting technology for transactions, he has been critical of cryptocurrency values in the past.

Bitcoin Rallies from Lows with Solid Climb, More Turbulence Will Develop

Bitcoin has climbed from its lows made early this week and is trading close to 9000.00 U.S Dollars per coin. The G20 meetings appear to have helped Bitcoin short term. Important support looks to be around 7500.00, while key resistance resides near 9800.00 Dollars for Bitcoin. Volatility is a constant companion for cryptocurrencies, and Bitcoin’s ability to gain momentum the past two days is an indicator more turbulence will develop near term.

Bitcoin 4H Chart
Bitcoin 4H Chart

Twitter Joins Ban of Cryptocurrency Adverts on Social Media

Twitter is reportedly set to follow in the footsteps of Facebook and Google and ban cryptocurrency and Initial Coin Offering advertisements. Social media’s impact on the popularity of cryptocurrencies and its related businesses have helped create a dynamic environment for digital assets. The announcement from Twitter will reportedly take effect in two weeks.

Blockchain Conference in Kiev on Friday

A Blockchain conference will take place in Kiev on Friday, and participants are been promised a good educational and networking event.

  • March 23rd, Ukraine, International Blockchain UA Conference in Kiev

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.