Ethereum

<h3 id="the-u-s-regulator-named-securities-as-the-closest-competitors-of-ethereum-our-experts-told-us-what-risks-this-brings-for-eth">The U.S. regulator named securities as the closest competitors of Ethereum. Our experts told us what risks this brings for ETH</h3><p>From June 5 through June 6, cryptocurrency rates reacted to the SEC’s lawsuit against two major exchanges with a dramatic drop. Bitcoin and other cryptocurrencies fell in price, but by the morning of June 7, they partially recovered their losses. Ethereum was no exception and on June 6 updated its low from May 25 at $1802.</p><p>In lawsuits against two major exchanges, the SEC named several cryptocurrencies as securities. These assets reacted with fall of rates more strongly than others and fell in price by 6-15%.</p><p>In the first lawsuit were called securities: Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL). As well as Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA). And Algorand (ALGO), Axie Infinity (AXS), COTI (COTI).</p><p>In the second lawsuit, Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP) joined them. As well as NEAR Protocol (NEAR), Voyager VGX (VGX), Dash (DASH) and NEXO (NEXO).</p><p>Despite the fact that the commission named Ethereum competitor coins (e.g., Solana), the largest <a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">ETH</a> itself avoided a similar fate. None of the lawsuits mentioned it as a security.</p><h3 id="why-the-sec-chose-the-cryptocurrencies-it-named-in-the-lawsuits">Why the SEC chose the cryptocurrencies it named in the lawsuits</h3><p>The SEC sampling algorithm is completely incomprehensible. And it defies logic, our experts note. Either the initiators of this process have outdated data. Even from the time of PoW mechanism in Ethereum network (till September 2022). Or it’s a “show punishment” for trading “tokens nobody needs,” says our expert.</p><p>SEC head Gary Gensler told CNBC that cryptocurrencies are essentially unnecessary at all. “We already have a digital currency. It’s called the U.S. dollar, the euro or the yen,” Gensler said.</p><p>The very arguments of the U.S. regulator regarding the recognition of PoS and DPoS (validators, not miners) projects as securities are “ridiculous.” But in the moment, these accusations can “create panic among investors” and provoke a local price collapse.</p><h3 id="long-term-prospects-for-ethereum-are-positive">Long-term prospects for Ethereum are positive</h3><p>If we consider the long-term prospects of Ethereum. It has much more growth potential than even Bitcoin. Because BTC’s growth comes from its status as the first cryptocurrency. As well as popularity and scarcity, which led to the leading position in infrastructure development.</p><p>For ETH the main growth driver is the area of decentralized finance (DeFi), says our expert. DeFi is still in its infancy. And in the future it will be able to push the price of ETH, which provides the infrastructure for DeFi projects.</p><h3 id="short-term-eth-prospects">Short-term ETH prospects</h3><p>For short planning horizons on Ethereum, things are very complicated. <a href="https://crypto-upvotes.com/about-us/" rel="noopener noreferrer nofollow">Our experts</a> note that on the one hand, Ethereum benefited from the fact that it was “forgotten to be mentioned” in the lawsuits.</p><p>But on the other hand, if ETH will be “remembered” later. It could repeat the fate of those coins that are already on the SEC list. As some investors exit from these coins, the assets are rejected by the platforms. Therefore, the risks remain, our Crypto Upvotes expert warned.</p>

How SEC policy will affect Ethereum

목차

Crypto Upvotes News

2023년 6월 8일에 게재된 다른 기사

Potential SEC Legal Targets in Crypto Space: Speculation Rises

Binance and Coinbase Net Flows Defy Expectations,

US judge revives crypto lawsuit against Kardashian and Mayweather

CZ Denies Allegations of Binance User Fund Diversion

Massive crypto influx: 110 million new users enter markets despite regulatory fears

Binance under dark clouds

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!