While social media giant Facebook’s hair stood on end as its three social networks crashed, the price of Bitcoin soared again and topped $49,000, representing a growth of more than 4.5 % in less than two hours.
Similarly, coins such as Ether rose 3.5 % in the same period to $3,411. The volatility experienced in the crypto markets came with the almost simultaneous fall of Instagram, Facebook and WhatsApp. Service on these platforms went down worldwide and took up to nearly 24 hours to restore.
Bitcoin’s surge during the Facebook crash has brought the cryptocurrency back to punctuating the $50,000 mark. According to Michael Van de Poppe, a crypto market analyst, it is possible that Bitcoin will surpass $50,000 and then its value will fall back a bit before recovering slightly again.
Cointelegraph reported that the disruption impacted also affected the operation of several crypto businesses that operate through Facebook or Instagram, however, platforms such as Discord, Twitter, and YouTube served at least as temporary substitutes for crypto traders.
Some blockchain enthusiasts used the occasion to advocate for the decentralization of social networks, as is the case of Allen Farrington who claims that “if they built facebook on a blockchain it would never go down.”
On the Internet there are already some social networking companies working on the Blockchain concept such as Steemit that pays its users for the generation of content using cryptocurrencies. The company operating in Austin, Texas since 2018 has paid an equivalent of $60 million to its community members.
Twitter CEO Jack Dorsey confirmed that the company is already working on its own form of decentralized social network. To run the new platform, Twitter hired Jay Graber to develop the new decentralized social network. Graber is a former software engineer at Blockchain firm Skuchain.
Facebook’s Black Monday: a system crash, a whistleblower and an antitrust lawsuit on its feet
Facebook’s stock fell nearly $20 in less than a day after the company’s three major social networking services went down. Facebook’s market capitalization value fell by nearly $47 billion during Monday’s trading.
Facebook’s crash coincided with the disclosure of hundreds of documents revealed by former Facebook employee Frances Haugen, which show that the platform is not fulfilling its commitments to control hate speech, among other issues.
Facebook, on the same Monday of the crash of its systems, filed a motion for the Federal Trade Commission (FTC) to review the antitrust lawsuit facing the company that would force it to sell Instagram and WhatsApp. Before the District Court of Columbia, Facebook argued that the FTC had failed to present evidence proving that the company was a monopoly or had used its dominant position to weaken competition.