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It has been a tough day for cryptovestors. Many of you are struggling to reason away how you’ve lost all this money overnight, just when things were looking stable and you were considering buying in again to try and recoup the January losses. The skeptics will be giving you that ‘I told you so’ look crossed with the ‘pity’ look as many will try and hide the sudden losses. On the other hand the crypto die-hards will be yelling to everyone to buy as crypto is on a massive sale at the moment. Neither advice is necessarily helpful as they are both emotionally driven and not based on the facts at hand. So what really happened? Read on my companion.

 

Firstly, The US SEC (Securities and Exchange Commission) has asked all exchanges to register with them, well as… exchanges. The reasoning behind this is that when a person hears the word ‘exchange’ they will associate it with a stock exchange and all the regulations and rules which they adhere to. Currently none of the cryptocurrency exchanges are listed as an exchange which means they do not have to comply with these rules and regulations. Is this misleading? The SEC would say so.

 

“If a platform offers trading of digital assets that are securities and operates as an ‘exchange’, as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.” the SEC stated today.

 

As we have all learnt by now, any news about regulations and rules being placed on the crypto world is likely to contribute to a panic. Not very reasonable, but nonetheless it does happen.

Secondly, there were rumours that Binance, one of the biggest cryptocurrency exchanges, had been hacked. At the time of writing, there are two popular views which are circulating. The first of these is stating that Binance’s API’s had been exploited. An API is like a gateway which allows other programs or codes to interact with Binance’s trading platform. The other view, which is backed by Binance Founder CZ, was that a phishing site with a very similar URL to the original Binance site was setup. This tricked people into putting in their secure details, essentially giving the crooks the key to their money boxes. As such, nothing was hacked but people were just… tricked!

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But Binance has seemingly recovered some of its integrity by stating that the phishers will not get any of the funds, “We have localized the irregular trades, they will be reversed. All funds are safe, thanks to the fast alarm. Please learn to secure your accounts against phishing.”

 

That last sentence almost sounded like someone is exasperated by the ease at which people are tricked and then blame someone else. Fair call? I’ll let you decide…

The third and final piece of action which has contributed to today’s market movements is news about Mt. Gox. Many of the older cryptocurrency generation will now roll your eyes. Essentially, Mt. Gox had the second largest (largest until recently) hack in cryptocurrency history with many millions of dollars’ worth of coins stolen and never recovered. This, after a few events, resulted in a massive mess and eventual bankruptcy.

 

But now… The bankruptcy trustee for Mt. Gox has come forward today saying that a lot of the Bitcoin currently being held will be sold to start paying off creditors. This is $1.9B worth of Bitcoin, as in over 1% of the total market share. As you can imagine, this has created a virtual bear run in people’s minds. This fear is causing a sell-off before the ‘massive price drop’. You know where you think about your worst fear, then you try and stop it from happening, then it happens precisely because of your previous stated actions? Yeah… well… hmm…

 

So, it’s just been a rainy day, where the cryptocurrency horse has been soaked through… forgotten to be fed… and then struck by lightning. Basically, it just isn’t its day. What needs to be asked now is that we know the facts, but how will this really affect cryptocurrency. If we take the investors out of the equation, then it won’t affect it at all… But then again, the investors are kind of what make cryptocurrency what it is today.

 

Mappo has been investing and trading in fiat currencies since 2013. He has recently moved into the crypto world spreading his portfolio over long term coin investments, ICOs and day trading.

 

#Cryptocurrency #ICO #exchange #bitcoin #Crypto #blockchain #Cryptics #Mappo

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