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.
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!
Do you know what problems cryptoassets solve? Elad Gil is a popular investor with a cool blog — he just published a good overview of core crypto use cases.
Do you know what problems ICOs solve? Michael Flaxman’s latest Medium article argues that they “misguidedly attempt to solve four perceived problems in the market”.
Do you know what problems crypto-brawls solve? None, but they can be fun. Watch Daniel Roubini, the popular economist who predicted the 2007–08 crisis, claim that “all this talk of decentralisation is just bullsh*t”. A fellow panelist asked “why don’t you go buy yourself a coin and tell us how it works?”
Goldman Sachs had hinted it was launching a crypto trading desk last December, only to rebut the rumours in February. Now it’s official — NYT’s Nathaniel Popper explains.
Crypto’s on-boarding flow is not the best, as most users come for the money and fail to learn about the disruption. But Brendan Bernstein’s latest tweet-storm has you covered!