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SEC Fined EtherDelta Founder. What Does This Mean For All ERC-20 Tokens Securities?

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    SEC fined Zachary Coburn (founder of EtherDelta) $388,000 US Dollars for operating an unregistered securities exchange

SEC Fined EtherDelta Founder. What Does This Mean For All ERC-20 Tokens Securities?
Cover image via u.today

EtherDelta is a well-known Decentralized Exchange (DEX) and the trading platform for hundreds of ERC-20 tokens issued via ICOs. The US Securities and Exchange Commission (SEC) fined Zachary Coburn (founder of EtherDelta) $388,000 US Dollars for operating an unregistered securities exchange. As a result, the trading volume on the platform dropped substantially to just $250,000 per day (previously in the millions).

This SEC ruling raises the question of whether all Ethereum-based tokens are considered securities by the Commission. What about other crypto coins? How will this affect other decentralized exchanges? Will it somehow affect Ethereum’s price? It is most likely that ERC-20 tokens will be classified according to a set of rules: some will be securities, and some will be commodities. The fine against EtherDelta is due to a non-registered exchange.

Charts at a Glance

image

ETH/USD is still up 5.93% for the last 7 days, but it has been retracing lower after hitting the high at $223. The next logical destination is the confluence zone created by the bullish trend line seen on chart and the horizontal support at $205 but from there, we expect bullish price action to resume.

A break of the mentioned zone would create a lower low, would show increased bearish pressure, and would be a clear sign that further downside will follow. It must be noted that the 200 mark is in close vicinity, and this will act as a strong psychological support. In other words, the path of least resistance is North.

Support zone: $200 – $205 zone and the bullish trend line

Resistance zone: $223

Most likely scenario: bounce at support and move through $223 (during several days probably)

Alternate scenario: break of support zone and extended downside movement

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper

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    World-famous investor and Bitcoin bull Tim Draper explains what reasons will push Bitcoin price to $250,000 by 2023

Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper
Cover image via en.wikipedia.org

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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While speaking to the audience at the Malta AI & Blockchain Summit last week, the billionaire and prominent Bitcoin supporter Tim Draper confirmed his previous forecast for the BTC price hitting $250,000 in the near future.

This time he explained that this high price per one BTC will be achieved through the growing use of the Lightning Network and explained how it will happen from his point of view.

Bitcoin still to hit $250,000

The Bitcoin permabull Tim Draper again stated that the Bitcoin price is going to hit $250,000 by 2022-2023. He said this will happen due to the growing use of the Lightning network which allows conducting payments in BTC easily.

Being a major global investor, he nevertheless shares the opinion of many crypto enthusiasts that BTC is not only a store of value but it can also be used to pay for things in everyday life – micropayments, the retail sector, etc, i.e. is perfect for adoption.

Previously, Tim Draper stated that his forecast of BTC reaching $250,000 was actually a quite conservative prediction.

Will Bitcoin get to be worth $1 mln?

As reported earlier on Wednesday by U.Today, the crypto asset manager and a trader Marius Landman tweeted that before Bitcoin hits $1 mln, it is bound to go through ‘super hyper inflation’, in which price drops by $20,000 will be considered insignificant.

He also expects Bitcoin and Litecoin to show ‘subito motus’ (Latin for ‘sudden movements’) soon, saying that this will leave uninformed investors and technical analysts at a loss.

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Bitcoin Price Hits $10,000 on Obscure Cryptocurrency Exchange

Smaller bullish BTC forecasts

Other traders and analysts seem to think more vaguely when they are looking at technical analysis graphs. They are bullish, nevertheless.

The @crypto_rand trader with over 216,000 followers on Twitter simply posts a chart, saying that Bitcoin ‘still looks bullish’.

Another analyst and trader PlanB has published a chart of the way the changes in the Bitcoin mining difficulty have impacted the BTC price. People in the comment thread agree that this data at the moment is bullish for the Bitcoin price.

At press-time, Bitcoin is sitting at $8,823.

BTC price CMC
Image via CoinMarketCap

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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