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The world of cryptocurrency has been a rollercoaster of highs and lows, and despite recent recoveries, it’s still struggling to shake off its reputation for instability and scandal. Back in 2022, the crypto market plummeted, wiping out two-thirds of its value in a year. This crash exposed the precarious nature of numerous leading crypto companies and coins, and the wildly speculative bubble around NFTs, those pixelated images of apes, burst spectacularly. Critics, myself included, had a field day as the crypto world reeled from its setbacks.<a href="https://archive.ph/lLcE4#selection-2175.0-2202.0" rel="noopener noreferrer nofollow" target="_blank"> </a>
Fast forward to now, and the picture isn’t quite as straightforward. Crypto prices have rallied, with market valuation doubling over the past year. The US Securities and Exchange Commission (SEC) has greenlit 11 spot bitcoin exchange-traded funds (ETFs), a move that integrates crypto into more conventional investment paradigms. Even Larry Fink, the head honcho at <a href="https://www.cryptopolitan.com/blackrocks-bitcoin-etf-soars-past-2b-aum/" data-type="post" data-id="453479" rel="noopener noreferrer nofollow">BlackRock</a>, has turned into a bitcoin advocate, praising it as a protective asset class.
<h3 class="wp-block-heading" id="the-hype-and-the-reality-of-crypto-s-legitimacy">The Hype and the Reality of Crypto’s Legitimacy</h3>
There’s been no shortage of hype around these developments. Michael Saylor of MicroStrategy called the SEC’s approval perhaps the most significant Wall Street event in three decades. Brad Garlinghouse of Ripple was equally effusive, hailing it as a watershed moment for crypto’s legitimacy.
But strip away the exuberance, and what’s left is less than thrilling. The approval of bitcoin ETFs hasn’t unveiled the mystery of bitcoin’s creator Satoshi Nakamoto, nor has it introduced a revolutionary new asset class. Instead, crypto has morphed from a radical alternative to traditional finance into a more mundane investment tool for portfolio diversification and revenue generation for asset managers.
However, SEC Chair Gary Gensler was quick to clarify that the approval doesn’t equate to an endorsement of bitcoin or crypto at large. The commission’s decision stemmed from a court ruling against the SEC’s longstanding opposition to bitcoin ETFs, which it had argued were susceptible to fraud and manipulation. Gensler pointedly remarked that bitcoin is largely a speculative and volatile asset linked to illicit activities like ransomware and money laundering.
<h3 class="wp-block-heading" id="from-ai-bots-to-eccentric-etfs-the-diverse-world-of-crypto">From AI Bots to Eccentric ETFs: The Diverse World of Crypto</h3>
The crypto landscape isn’t just about regulated investments. There’s still a wild side to it. Recently, an online pastor was charged with civil fraud for selling a crypto coin to Christians, claiming divine assurance of riches. When the scheme unraveled, the pastor’s defense was that he might have “misheard God,” while also justifying spending part of the $1.3 million proceeds on a “God-ordained” home remodel.
Meanwhile, the use of AI in crypto trading has been a hot topic. The United States Commodity Futures Trading Commission (CFTC) has cautioned investors against relying on AI trading bots for big returns. Despite their surge in popularity, these bots can’t predict the future. The CFTC warns against being swayed by the grand promises of AI-assisted trading tools, as they often become tools for fraud.
In 2023, the industry was abuzz with discussions around AI-driven crypto trading bots. Several U.S. state regulators targeted YieldTrust.ai, accusing it of operating a Ponzi scheme without any tangible proof of its AI bot’s capabilities. In another instance, a crypto trading bot used a $200 million flash loan for a paltry $3.24 profit.
However, big crypto exchanges like Bitget are exploring AI bots. Bitget CEO Gracy Chen touted their Commodities Trading Advisor AI bot, which simplifies strategy selection for users, hinting at the growing intersection of AI and crypto trading.
Earlier in 2024, when asked about Bitcoin’s potential to hit $100,000, ChatGPT highlighted AI’s role in market analysis and blockchain advancements. This underscores the growing interest in AI’s application in crypto, despite regulatory warnings and the mixed results seen so far.
The crypto world remains a kaleidoscope of the regulated and the wild, the innovative and the questionable. Its journey towards proving its legitimacy is still fraught with challenges, skepticism, and a constant struggle against its speculative and tumultuous past. While crypto may have become more mainstream and somewhat dull, its legitimacy is still a topic of heated debate, and rightly so. From regulated ETFs to AI trading bots and scandalous schemes, the crypto universe is as diverse and unpredictable as ever.
As for taking victory laps or admitting defeat in the face of crypto’s recent developments? The jury is still out. The crypto saga continues to unfold, balancing on the thin line between legitimacy and skepticism, with each new development scrutinized under the unforgiving lens of public opinion and regulatory oversight. Whether it will ever fully shake off its contentious past and prove its worth as a legitimate asset class remains to be seen. But one thing is certain: the world of crypto is never dull, and its journey towards legitimacy is a story
worth watching.

Crypto is still having a hard time proving its legitimacy

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