Market report


London Block Exchange

3rd May 2018

A hyped meeting is likely priced in already — will it turn out to be uneventful?


A hyped meeting is likely priced in already — will it turn out to be uneventful?

The cryptosphere was ashore with commentary on whether or not next Monday was going to be a big bad day for ether. As reported yesterday, the CFTC will start discussing whether or not Ethereum’s token is a security — jointly with the SEC, which previously called ether a currency instead of a security.

Some tough questions are expected. While Joseph Lubin, the project’s co-founder, claimed “we spent a tremendous amount of time with lawyers in the US and in other countries and are extremely comfortable that it is not a security; it never was a security”, it seems the foundational structure of Ethereum is different than it was.

As usual, the Twitter drama was more volatile than prices. The good thing about these markets is that the price tends to reflect whatever the investors’ prevailing sentiment is. As ether continues to climb steadily, it seems the majority is confident that regulators won’t step in. After all, it’s just an initial meeting, and — as reported on the 24th — the ex-Chairman of the CFTC believes regulation will take two to five years to be implemented.


Alts will pump as long as ether continues to appreciate — or until bitcoin moves

Provided that the outcome of the meeting on May 7th covered above isn’t too negative, some industry leaders believe ether has a bright future ahead. An example of the aforementioned optimism can be seen with Reddit’s co-founder who wildly predicts it will reach £11k ($15k) in 2018. If the trend remains bullish, according to some, the current market cycle that is favouring alternative projects will likely continue its path.

Contrastingly, if the outcome is worse than anticipated, watch out for Ethereum-based alts. If ether is deemed a security, it’s likely that most projects that fundraised through an Ethereum token generation event (aka an ICO are also securities. Confused on the terms? Worry not; check out our College of Crypto to learn the basics of the space, in a simple, yet elaborative manner.

Meanwhile, over the last 24 hours, 90 of the top 100 projects appreciated, with bitcoin continuing its accumulation phase. If you are wondering why some investors are not joining the current alt party, it’s likely because the original cryptoasset is deemed more stable and less risky. Move slowly and take profits!


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