Crypto Update: Nervous Sentiment Resides in Cryptos via SEC, Bitcoin Recovers
Initial Coin Offerings Feeling the Weigh of Speculative Confusion
Speculative sentiment among the cryptocurrencies has certainly been nervous as fewer buyers have been able to be found the past week. Part of the problem for the marketplace has been reports about crackdowns on cryptocurrency exchanges, which has likely given rise to angst among traders. However, a factor in the market has also been the call from the Security Exchange Commission on Initial Coin Offerings to be more transparent and make sure they comply with laws regarding U.S securities – meaning shares of equity. And this has given ICO investors reasons to pause as they try to understand the new mandates.
Bitcoin Recoveries Have Not Been Sustained, Headwinds Still Strong
Bitcoin is trading near 9800.00 U.S Dollars per coin early today. The cryptocurrency was able to stage a slight bounce on Sunday after facing a torrent of headwinds late last week, which saw its value fall to approximately 8400.00. And strong resistance is around the 10,300.00 U.S Dollar juncture. Sentiment remains fragile for Bitcoin, and while a steady stream of its backers continues to say buy on dips, the past few attempts to stage a solid recovery have failed to be sustained. Meaning Bitcoin may see a resumption of downward pressure near term.
The Difference between Cryptocurrencies and Tokens
Some ICO investors may have escalating concerns, stemming from the misunderstanding between cryptocurrencies and tokens. Cryptocurrencies work on an independent Blockchain, while tokens work based on the backbone of blockchains which use decentralized open source systems. Put simply, the SEC is taking the view that tokens are an asset being created by ‘companies’ which are intrinsic shares of value for an enterprise – and thus the reason why the U.S agency is intent on making ICOs using tokens acknowledge U.S federal securities laws.
Battle of the Cryptos Getting Started in NYC
A two-day event will get underway in New York City today called the Battle of the Cryptos. It will feature keynote speeches and include participants from the major cryptocurrencies and blockchains.
- March 12–13th, U.S, Battle of the Cryptos Conference in New York
Yaron Mazor is a senior analyst at SuperTraderTV.
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