One of the most unpredictable factors can be a company’s value.
Over the last month, we’ve heard about Facebook losing 150 billion dollars over 2 hours - An unimaginable number on any account. The commonly cited factor has been the disappointing earnings report, which indicated that in the face of overwhelming adoption of the platform - Facebook has been unable to monetize its user base to the expected level despite all the gathered information and the amazing amount of time spent on the social network - The ads are not working as well as they used to. As stated before, the income per western user of FB is not up to par, the expected income from Latin American and African users had to be revised lower, and access to the Chinese market is not expected to be given any time soon (Under the suspicion of US intelligence involvement within Facebook) and with local competition - Weibo already well established, same goes for Russia with VK.
How does it all relate to crypto / Blockchain?
With Facebook’s case, we can now see the limitations of the new data economy when it reaches its full potential with little more places to grow to, after a long way into its mature stage.
IOTA, whos chief selling point is an IoT driven data marketplace (Feared mainly for industrial use) had reported affiliations and partnerships with many industrial and financial giants. One of those expected partners is Sirin Labs, known for being the manufacturer of Blockchain phone, is the first to publicly end its relations with IOTA. That action had its vision made somewhat less glamorous in the eyes of investors. When we consider the fact that the platform is far from complete but still has an evaluation of almost 2 billion dollars in worth, all in a market whose size for IoT is around 100 billion, the market dominance is far from determined.
IOTA/BTC: 1H
With the Facebook case in mind,the risks of an immature system, potential competitors such as Ethereum expectations from the data economy decreasing, and Sirin announcing the end of a partnership, it suddenly becomes clear why IOTA is down to new yearly lows and still shows steep declines, will a new trend of realistic price expectations come to crypto? The same sobering realisation that affected facebook might hit crypto as well.