Bearish Market Persists
Tom Lee, a cryptobull, has revised his end of year Bitcoin price prediction from $25,000 down to $15,000, which is still pretty optimistic looking at the state of things today. His colleague Rob Sluymer of Fundstrat states that the first cryptocurrency will not be able to recover soon after falling to a new annual minimum of $5480.
One of the reasons why the situation on the market got shaky due to Bitcoin Cash hard fork. The cryptocurrency community is divided about which implementation of hard fork to support, three camps have cropped up. A number of exchange services (including the controversial Bitfinex) have revealed they will support both implementations, giving each its own price ticker. Others that will support only ABC or SV, and will continue to call whichever version they support the real BCH. Then there is the group that will merely wait and weigh out which chain it makes more sense to support in the long-term.
Leading exchanges like Coinbase and Binance have revealed intentions to support the Bitcoin Cash fork, but it is unclear exactly which version of the chain they will back.
Regardless of which implementation emerges as the new ‘real’ Bitcoin Cash though, the hard fork has caused irreparable damage to the community. Other than the steep drop in price this week, the family feud between Wright and Bitcoin.com boss Roger Ver has tainted the entire blockchain space.
More bad news are coming from the U.S. Securities and Exchange Commission (SEC) that said it settled charges against Zachary Coburn, the founder of cryptocurrency token trading platform EtherDelta, over operating an unregistered securities exchange.
The vast majority of the orders placed through EtherDelta’s platform were traded after the SEC had issued its 2017 report, in which the agency concluded that certain digital assets were securities and that exchanges that offered trading in these digital assets would be subject to the SEC’s registration rules.
SEC also has settled charges against two cryptocurrency companies which were accused of violating ICO securities offering registration rules. Both companies, Carrier EQ (Airfox) and Paragon Coin sold digital tokens in ICOs in 2017 after the regulator’s official stance on the ICO. Some crypto fundraisers can be considered securities offerings, according to its DAO Report of Investigation. As part of the settlement, both cryptocurrency companies will return funds to harmed investors, register the tokens as securities, file periodic reports with the Commission, and pay $250,000 in penalties.
At the same time owners and CEOs of some cryptocurrency businesses (most notably, exchanges) have still made a profit despite the harsh conditions. And the latest of these visionaries to be smiling is Brian Armstrong.
The 35-year-old graduate of Rice University currently serves as co-founder and CEO of Coinbase, the largest cryptocurrency exchange in the United States. Armstrong has joined some of his compatriots in the “two comma club,” with his net worth skyrocketing to $1.3 billion, up from the estimated value between $900 million and $1 billion earlier this year.