Former Twitter CEO Claims Ethereum Is A Security, Will This Affect Prices?

Jack Dorsey, the former CEO of Twitter, while replying to a comment on June 6, alleged that Ethereum (ETH), the world’s second-largest cryptocurrency exchange, is a security under United States laws.  This controversially implies that holders of ETH should, as directed by law, comply with rules enforced by the Securities and Exchange Commission (SEC). Dorsey Claims Ethereum Is A Security Dorsey, a known Bitcoin supporter and the CEO of Square Inc, a financial service company that owns Cash App, has been vocal about BTC’s underlying technology.  In his assessment, Dorsey thinks Bitcoin can change how money is exchanged.  Amid this, Bitcoin, as a network and a payment solution, can help create a more equitable financial system.  Square is already invested in Bitcoin. On the other hand, Cash App continues to process billions worth of BTC transactions.  SEC officials and the Commodity Futures Trading Commission (CFTC) have been recorded saying BTC, the native currency of the Bitcoin network, is a commodity and not an investment contract.  Related Reading: Cardano Founder Unveils SEC Motivation For Suing Binance The SEC and CFTC are two of the leading regulators in the United States tasked with regulating the securities and derivatives markets.  However, considering their broad scopes, their jurisdictions can overlap. Still, their endorsement of Bitcoin as a commodity can further drive adoption and boost liquidity. Dorsey’s statement comes as a regulatory storm in recent days threatens to draw ETH into the mix for several reasons.  The SEC’s chair, Gary Gensler, during a congressional hearing in early February specified that tokens like Ethereum are sold as investments, subsequently generating profits solely from the efforts of others.  Therefore, in the agency’s perception, it may be an investment contract or security subject to federal securities law.  All the same, the commission, he added, was reviewing the crypto markets, including those of Bitcoin and Ethereum, to ensure they are efficient and fair.  While before the House Financial Services Committee in mid-April, Gensler also failed to clarify whether ETH was a security or a commodity.  ETH Remains Sensitive To Regulatory Developments The SEC has brought enforcement actions against several companies that mint tokens on the Ethereum platform.  Leading influencers have also been accused by the SEC of promoting tokens they claim are registered securities.  Despite this, the SEC is yet to issue an official statement on the classification of this cryptocurrency. At the end, the commission could choose not to regulate ETH as a security after it has reviewed all relevant factors. Related Reading: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers With the regulator calling tokens of competing smart contract platforms like Cardano and Algorand as securities, ETH prices sold off on June 5 only to reverse losses today.  Whether the dump of June 5 was an overreaction from the crypto market is yet to be seen.  What’s clear is that ETH remains sensitive to regulatory actions, and bulls have since failed to break above 2023 highs of $2,100. Feature Image From Canva, Chart From TradingView

Whale’s Mighty Blow: Ethereum Altcoin Sent Crashing as Massive Sell-Off Unleashes – Is This the Investment Opportunity of a Lifetime? Report

Crypto analytics platform Santiment has highlighted a major move by a whale invested in Ethereum-based altcoin The Graph (GRT). According to the firm, the whale has disposed of over $55 million worth of GRT. As a result, the Ethereum (ETH)-based indexing protocol has suffered a mid-size price correction. Since the whale sold at around $0.130, […]

SEC Rules Binance Coin (BNB), Solana, Cosmos (ATOM), Polygon (MATIC), and Other Altcoins as Securities – Will Prices Drop to $0?

The US Securities and Exchange Commission (SEC) strikes again with another list of cryptos that it believes are securities. In its lawsuit against Binance, its CEO Changpeng Zhao, and Binance U.S., SEC listed 12 tokens namely; “BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox […]

Cosmos (ATOM) and Arbitrum (ARB) Experience Setbacks as DigiToads (TOADS) Emerges as the Preferred Choice for Investors

The crypto market has shown signs of weakness lately. Cosmos and Arbitrum are experiencing setbacks, so investors are actively looking for high-growth projects to stay in the green. One particular project that has attracted lots of attention lately is DigiToads – a record-setting meme coin poised to grow exponentially in the next few weeks. Here’s […]

Bitcoin Slips Below $26,000, Triggers Over $300 Million In Liquidations

The cryptocurrency market experienced a significant jolt as Bitcoin, the largest cryptocurrency by market capitalization, slipped below its previously plateaued threshold of $26,000. This downward movement has led to a surge in total liquidations, with traders losing more than $300 million within a span of 24 hours. The repercussions of this event are reverberating throughout the market, with major exchanges recording substantial liquidation figures. Record Liquidations Hit The Market The crypto market has been shaken by a surge in liquidations as Bitcoin faltered, prompting a domino effect of positions being forcefully closed. According to data from Coinglass, roughly 112,837 traders were liquidated in the past 24 hours, resulting in a cumulative loss of $304 million and counting. Among the exchanges involved, Binance took the lead in liquidations with $100.4 million, closely followed by OKX at $80.62 million. Although other exchanges also witnessed liquidations, their impact was comparatively lesser. Related Reading: Bitcoin (BTC) Dominance Trend Shifts Alongside Stablecoin Flows: Glassnode In the wake of Bitcoin’s dip, long positions bore the brunt of the liquidations, accounting for approximately $277.45 million (91.22%) of the total. This reflects the overwhelming presence of traders who had anticipated a price increase. Simultaneously, short positions also faced liquidations, amounting to approximately $26.71 million or nearly 10% of the total. The volatility of the market proved detrimental to both sides of the trading spectrum. Amid the widespread liquidations, one trader stands out for enduring the largest single liquidation. A trader on Bitmex recorded a massive loss of $9.94 million in an XBTUSD swap, underscoring the magnitude of the market upheaval. Additionally, Bitcoin liquidations alone accounted for $105.54 million, while Ethereum (ETH) witnessed liquidations totaling $33.87 million, further highlighting the far-reaching implications of this event. Bitcoin Slips Below $30,000 The global crypto market cap also slumped below the previously established $1.2 trillion mark with a value of $1.133 trillion at the time of writing, down by nearly 3.7% in the last 24 hours. The plunge comes after the ongoing negativity in the market such as the thrown-around lawsuit by the Securities and Exchange Commission (SEC). The news impacted Bitcoin significantly as the asset has lost more than $20 billion from its market cap in the past 24 hours and is down by nearly 5%, indicating possible violent selling pressure. Though the top crypto saw a slight uptrend on Sunday, it has seen a bearish trend since then. Meanwhile, at the time of writing, BTC currently trades below $26,000 with a 24-hour trading volume of $21 billion. An increase from the previously recorded daily trading volume of $11 billion seen last week Tuesday. Related Reading: No All-Time High For Bitcoin In 2023, Former BitMEX Head Arthur Hayes Predicts It is important to highlight that amidst the substantial liquidations, certain traders managed to capitalize on the market movement by strategically shorting their positions. While a considerable number of traders faced losses due to their long positions on Bitcoin, those who correctly anticipated the downward trend are now reaping profits in the current slumping cryptocurrency market. Featured image from iStock, Chart from TradingView

Ripple (XRP), Ethereum (ETH) and HedgeUp (HDUP) – Top 3 Coins to Watch In June 2023

The cryptocurrency market is an ever-evolving sphere, often making it challenging to keep track of the top performers. With June 2023 around the corner, investors are keenly monitoring the progress of several coins. Among them, Ripple (XRP), Ethereum (ETH), and HedgeUp (HDUP) have generated considerable interest due to their strong performance and promising roadmaps. Ripple […]