CEX.IO company blog | How have social networks responded to the development of the crypto industry?

The opinion of Dmitry Volkov, technical director of the international crypto exchange CEX.IO.

Technology companiesand, above all, social networks are enoughquickly responded to new trends in the financial sector. The founder of Telegram, Pavel Durov, and the creator of Facebook, Mark Zuckerberg, announced the creation of their own cryptocurrencies on social networks. However, before Jack Dorsey, the founder of Twitter, no one seriously talked about the introduction of bitcoin.

On the one hand, this is positive news thattestifies to the increasing adoption of cryptocurrencies by large tech companies. Including for this reason, at the beginning of this week, Bitcoin showed significant growth.

In addition to messages from the Twitter founder alsorumors began to circulate about plans to introduce digital gold into Amazon, which, however, were denied. Earlier in April, the head of Tesla, billionaire Elon Musk, provoked a rise in the bitcoin rate above $ 60,000 with statements about investments in cryptocurrency. Following Tesla, SpaceX announced its Bitcoin purchases in July. Against such a positive background, the BTC / USD quotes, according to the CEX.IO exchange, reached levels near $ 40,000.

However, there is also a downside - sinceBitcoin itself has become a good advertising tool; many companies can announce the integration of cryptocurrency into their services solely for the purpose of promoting and expanding a loyal audience. The same Tesla announced in April that it would accept payments for cars in Bitcoin, but already in May, Elon Musk’s opinion changed dramatically, and Bitcoin came under severe pressure.

Note that, in our opinion, most likely,the announcement of plans to integrate bitcoin into Twitter services is more of a marketing ploy for quality expansion and involvement of a new audience in their products. According to Dorsey, the main cryptocurrency in the future should become a large part of the social network, which is to a certain extent a figure of speech. Currently, the integration may well be effective for new products such as Super Follows and Spaces, for which Bitcoin will act as the "native currency" of the Internet. According to Dorsey, bitcoin has the best data to fulfill this role.

In our opinion, Dorsey has chosen a good time tothe introduction of bitcoin into its own social network, as its competitors will have to adopt a catch-up strategy, while the popularity of digital assets is only growing every day. Moreover, the current year has shown that cryptocurrencies are serious and for a long time, and sooner or later they will become an integral part of any service. In the future, Facebook may well join this initiative.

As for Russian social networks,such as VK or OK, they will most likely be focused on working with CBDC (central bank digital currencies). First of all, this will be the digital ruble and crypto projects approved by the Central Bank, since the Russian regulator has taken a rather tough position in relation to independent cryptocurrencies. Most likely, popular Chinese social networks will follow a similar path, most likely adapting their services to the digital yuan.

Read the full material here.