Bitcoin (BTC) and Ethereum (ETH) To Be Piloted in Investment Products By 2 Major Russian Banks – Crypto Coins Reports

Cryptocurrency investment has been treated with caution by many banks around the globe. Some  have even advise their customers not to buy them, with others freezing their customers cards whenever they attempt to purchase crypto on the numerous exchanges. However, two of the largest banks in Russia intend to test several crypto products for their private customers. These products include what the two banks – Sberbank and Alfa Bank – describe as exchange algorithms.
According to a report by the Kommersant Newspaper, the algorithms operate on the basis of an investment portfolio which comprises of the six most trusted cryptocurrencies in the market. The four cryptocurrencies named in the report include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The remaining 2 digital assets are yet to be confirmed by the two banks.
These algorithms will be self adapting and according to the market situations. The set of cryptocurrencies in the portfolio will be reviewed once every quarter and their weighted value on the portfolios changed according to the algorithm. The two banks will offer the products based on the existing regulatory platform of the Bank of Russia.
The Deputy Head of Sberbank Private Banking, Anna Ivanchuk was quoted as saying the following with respect to the new investment products:

We want to offer our clients a completely transparent version of the entrance to digital assets that fully meets the regulatory requirements that will allow them to invest in an interesting product in Russia.

Her sentiments were echoed by the manager in charge of the development of the product at Alfa Bank, Anton Rakhmanov, who was quoted as saying:

Our goal is to accelerate the adoption of a decision on the recognition of the CFA investment assets and introduce them into the legal field as quickly as possible

Alfa Bank is one of the largest private commercial banks in Russia. Its headquarters are in Moscow and the bank operates in 7 countries. The bank offers financial services to over 360,000 active corporate customers and 14.2 Million Retail clients.
On the other hand, Sberbank is a state owned Russian bank and financial services provider also headquartered in Moscow. It has operations in several European and post-Soviet countries. Data from 2014 indicate that it was the largest bank in Russia and Eastern Europe back then. The same data shows that it was classified as the third largest in Europe during the same year of 2014.
In conclusion, the magnitude of the willingness of these two major banks to pilot cryptocurrency investment products is a clear indication that the so called institutional investors are slowly and cautiously showing interest in the cryptocurrency markets as an alternative form of investing.
The post Bitcoin (BTC) and Ethereum (ETH) To Be Piloted in Investment Products By 2 Major Russian Banks appeared first on Crypto Coins Reports.

The post Bitcoin (BTC) and Ethereum (ETH) To Be Piloted in Investment Products By 2 Major Russian Banks – Crypto Coins Reports appeared first on Crypto coins reports.

Phillip Nunn Predicts Bitcoin [BTC] at 60k by 2018 – Crypto Coins Reports

The crypto market has suffered such a strong bearish run in 2018 that the sentiment of many investors has become entirely pessimistic.
Many bullish predictions today seem more based on the feelings of investors rather than on objective market analysis.
However, despite these insights, many analysts still venture to make predictions to see how well they know the market.
Earlier this year, Phillip Nunn stated that by the end of the 2018 bitcoin could reach the 60K level. A somewhat bullish prediction, considering that less ambitious opinions have already been questioned.
Phillip Nunn is CEO of The Blackmore Group and Wealth Chain Group. His proven investment expertise has given him considerable prestige in the community of Venture Capitalist around the world.
Talking to Business Cloud at the KPMG’s Tech Manchester event, Phillip Nunn was utterly bullish despite the behavior of the crypto markets during the year:
The reality is we’re moving from an internet of information to an internet of value… It’s going to disrupt everything; money, record-keeping, legal.
Phillip Nunn
Even though Nunn’s predictions are hard to believe after the sharp drop in prices, He still argues that it is “absolutely” possible to achieve that goal.
The prediction was based on, first of all, market volatility which we’re experiencing at the moment; I think that’s really apparent. I absolutely stand by my prediction.
Phillip Nunn is One of The Bulliest Predictors to Date
Another prominent analyst who is famous for his bullish predictions is Tom Lee, CEO of Fundstrat, who considers the 25k band his goal.

CRYPTO: Discussion on why Wall Street should care about crypto #BTC @fundstrat https://t.co/4Y2lfvCtYY
— Thomas Lee (@fundstrat) June 6, 2018
https://platform.twitter.com/widgets.js
Perhaps the most famous prediction is the one of John McAfee, who estimates that Bitcoin will reach 1 million by 2020. Getting a constant estimate, this would mean a value of 29K by the end of 2018

When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
— John McAfee (@officialmcafee) November 29, 2017
https://platform.twitter.com/widgets.js

However, McAfee predicted that Bitcoin would reach a price of 15K by June:

My short term price predictions: in a major dip, with nearly everything dropping, the price of Docademic doubled since my prediction. The market will turn before June 12th and my predictions will hit. My algorithms predicted Trump's June 12th date. They have never been wrong. pic.twitter.com/IGAzWPtOV4
— John McAfee (@officialmcafee) May 24, 2018
https://platform.twitter.com/widgets.js
Tim Draper spoke of 25k by 2022, which would result in approximately 8K by the end of the year:

Serious winds (of change) at our block (chain) party last night. Predicting bitcoin at $25k by 2022.
— Tim Draper (@TimDraper) April 13, 2018
https://platform.twitter.com/widgets.js

These last two predictions have created what is known as Draper Lines or McAfee lines, references informally used by those who wish to compare prices with the forecasts of these two important influencers.
Right now Bitcoin has a price of 6500 USD, with a clearly bearish behavior taking as reference one-day candles. The RSI shows that it is an excellent buying opportunity due to its low prices.
Graphics provided by Tradingview
This could encourage those who have a long-term view, although it is crucial that each person does his or her own research before investing, as the market for cryptocurrencies is highly volatile and “unpredictable”.
The post Phillip Nunn Predicts Bitcoin [BTC] at 60k by 2018 appeared first on Crypto Coins Reports.

The post Phillip Nunn Predicts Bitcoin [BTC] at 60k by 2018 – Crypto Coins Reports appeared first on Crypto coins reports.

50% of Top 10 Crypto's Can Be Classified as Securities, says Crypto Hedge Fund Exec – Crypto Coins Reports

Multicoin Capital is a crypto hedge fund and its Managing Partner, Kyle Samani, has used the recent statements by the SEC Director of Corporate Finance, William Hinman, to further analyze the top 10 cryptocurrencies as to whether they make the cut of Hinman’s definition of a security.
In a 17 part tweet, Kyle Samani came to the conclusion that the following cryptocurrencies are securities:

Ripple (XRP)
Stellar (XLM)
IOTA (MIOTA)
Tron (TRX)
Cardano (ADA)

Samani highlighted the following from the statement issued by Director Hinman to prove his argument:

If the network on which the token or coin is to function is sufficiently decentralized – where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts – the assets may not represent an investment contract.

Samani zeroed in on the last statement of:

where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts.

With the above statement, Kyle Samani came to the conclusion that the coins of XRP, XLM, IOTA, TRX and ADA qualify as being securities. All these projects have the founding companies holding a vast majority of the tokens.

17/
The next few months certainly will be exciting!
{fin}
— Kyle Samani (@KyleSamani) June 15, 2018
https://platform.twitter.com/widgets.js
In the case of Ripple, the organization is known to be HODLing some XRP in escrow, giving some of it away as well as selling some XRP in the markets when needed. Samani stated that the Stellar Foundation owns over 90% of the coins making it a security. The same applies to IOTA and TRX. The only reason ADA made the list as a security is because the platform is not truly decentralized yet and that nobody knows how many ADA the Cardano Foundation owns.
With respect to Bitcoin, Bitcoin Cash, Litecoin, Ethereum Classic and EOS, Samani used the above argument to quickly declare them as NOT being securities. In the five coins, no single founding entity owns a vast majority of the coins. Plus the mining/block production characteristics of the 5 platforms, furthers decentralization on the individual networks.

13/
Litecoin – obviously not a security
Bitcoin cash – I don't see how it can be a security if Bitcoin is not
Ethereum classic – hard to justify Ethereum Classic as a security if Ether isn't
— Kyle Samani (@KyleSamani) June 15, 2018
https://platform.twitter.com/widgets.js
He also gave some advice to the EOS community when he said:

EOS – only 1 implementation. B1 owns 10% of tokens. B1 clearly did not launch the chain. If I were B1, I’d encourage the community to build another EOS implementation. This, combined with the fact that BPs clearly are independent businesses, could make EOS a utility quickly

Samani would end his twitter thread with the following comments:

The next few months certainly will be exciting!

This indicates that the five coins of XRP, XLM, MIOTA, TRX and ADA might find themselves being classified as securities by the SEC and constrained by regulation. Such an event is sure to cause some shock-waves in the crypto-verse.
The post 50% of Top 10 Crypto’s Can Be Classified as Securities, says Crypto Hedge Fund Exec appeared first on Crypto Coins Reports.

The post 50% of Top 10 Crypto's Can Be Classified as Securities, says Crypto Hedge Fund Exec – Crypto Coins Reports appeared first on Crypto coins reports.

Here Is Why Ethereum (ETH) Futures are A Double Edged Sword – Crypto Coins Reports

The metaphor of something being a double edged sword might have originated in ancient Arabia when swords were the epitome of weaponry. Others might debate that it originated from the days of the Samurai in Japan. Whatever the origin of the metaphor, it means the same thing globally; that something has the potential for being favorable and also unfavorable. Picture the blade which is sharp on both ends. It is a threat to both the opponent and an inexperienced user.
The reason for the extensive explanation of the metaphor, is to give a clear picture of what the announcement by the CBOE President that the SEC decision to declare Ethereum (ETH) as not fitting the bill of being classified as a security, paves the way for ETH futures being offered by not only the CBOE (Chicago Board Options Exchange), but also other firms such as the CME Group.
Chris Concannon, the CBOE President had this to say about the SEC’s new stance on Ethereum:

We are pleased with the SEC’s decision to provide clarity with respect to current Ether transactions. This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.

So why is this a double edged sword?
Firstly, and referring to the past market reaction when BTC futures were announced as being offered by both CBOE and CME Group, Ethereum might rally to new highs as was the case with BTC right before December 17th when the BTC futures went live. Bitcoin was trading at $20,000 on the eve of the BTC Futures roll-out. A rally of Ethereum is very welcome.
Observing history once again, the price of BTC would then tumble through January and to the current levels we are seeing. Some have even pushed the theory that the BTC futures dragged down prices.
Therefore, Ethereum might experience a similar fate of a rally and decline as a result of the SEC giving an unofficial green-light for the offering of ETH futures.
Secondly, and using the past history of BTC futures, traders might use the history of BTC outlined above, and decide to short Ethereum. Shorting is the activity of borrowing an amount in stock, or in this case crypto, then immediately selling and hoping its price will decline. When it does so, the trader immediately buys the same amount at a cheaper price. He refunds the borrowed amount and keeps the difference in cash as profits.
Shorting will flood the markets with ETH leaving traders who want to go long, with no option than to sell or incur losses. This means that ETH will flood the markets and its price will tumble due to an over supply.
Thirdly, the ETH futures might give validity to the crypto-markets and bring in the institutional investors everyone is talking about. As they buy more crypto, the market capitalization of the entire crypto markets is sure to increase and so will the price of all our favorite coins and tokens. This means that we might be headed for the December and January levels once again.
In conclusion, the entry of ETH futures was expected and is a welcome proposal. This might end up benefiting Ethereum and the entire crypto-markets by bringing in institutional investors. The other side of the coin, is the two cases described where the value of Ethereum will first rise then tumble as was seen with Bitcoin in the past; and the second case where ETH will be shorted en mass, leading to its decline in value.
Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.
[Photo source, buyblade.com]
The post Here Is Why Ethereum (ETH) Futures are A Double Edged Sword appeared first on Crypto Coins Reports.

The post Here Is Why Ethereum (ETH) Futures are A Double Edged Sword – Crypto Coins Reports appeared first on Crypto coins reports.

CIA ‘Can Neither Confirm Nor Deny’ They Know Who Is Satoshi Nakamoto – Crypto Coins Reports

The quest in pursuit of the man behind the pseudonym of Satoshi Nakamoto never ends. Since the birth of Bitcoin, the world’s curiosity about this mysterious character just keeps growing about as much as the increasing value of Mr. Nakamoto’s cryptocurrency.
Central Intelligence Agency
Many people started to search for information in an attempt to discover who is the enigmatic character, yet no one has been able to find the answer with complete certainty.
A little over a month ago, Daniel Oberhouse, who writes for Motherboard, had the idea of exercising his right to be informed and formally asked the FBI and the CIA to clarify whether they had documents to prove Satoshi Nakamoto’s identity.
According to his words, The FBI did not answered his letter, but after a month, the CIA did reached him:

“My request with the FBI is still open, but a month after I filed my FOIA request with the CIA, I received a terse reply that informed me that “the request has been rejected, with the agency stating that it can neither confirm nor deny the existence of the requested documents.”

CIA: An Agency Expert on Ambiguous Answers
This form of response, known as the Glomar Response, is typical of the intelligence agency when it wants to evade liability while avoiding further damage legally. Wikipedia explains the use of the term as follows:

“There are two common situations in which Glomarization is used.
The first is in a national security context, where to reject a request on security grounds would implicitly suggest that the documents or programs that the requester is seeking indeed exist, but to confirm their existence would mandate their disclosure.
The second instance is in the case of privacy, in which a response as to whether a person is or is not mentioned in an entity’s (e.g., law enforcement, mental health facility, etc.) files may have a stigmatizing connotation.
Glomar responses are commonly associated with Freedom of Information Act (FOIA) requests.”

A curious fact is that precisely this form of expression is so traditional in the CIA that its first Tweet made an explicit reference to it:

We can neither confirm nor deny that this is our first tweet.
— CIA (@CIA) June 6, 2014
https://platform.twitter.com/widgets.js
Will We Ever Know Who Satoshi Nakamoto Is?
Given the characteristics of the response, the fact that it is a matter of national security opens the door to much speculation. The simple point of denying it would not have generated any greater consequence other than the disappointment of the curious.
The CIA’s response only raises uncertainty, although it is understandable that they did so. Previously, there have been many claims of people “discovering” who Satoshi Nakamoto truly is: Dorian Nakamoto, Craig Wright, Ross Ulbrich and some theories that state that Bitcoin is precisely a creation of governments.
The doubt remains, and it seems that only Satoshi Nakamoto can reveal his true identity.
The post CIA ‘Can Neither Confirm Nor Deny’ They Know Who Is Satoshi Nakamoto appeared first on Crypto Coins Reports.

The post CIA ‘Can Neither Confirm Nor Deny’ They Know Who Is Satoshi Nakamoto – Crypto Coins Reports appeared first on Crypto coins reports.

Steve Bannon is Buying The Dip on Cryptos – Crypto Coins Reports

Steve Bannon, one of the masterminds behind Donald Trump’s presidential campaign and a former member of his presidential cabinet, has found a new passion in addition to politics: Cryptocurrencies
US President Donald Trump (L) congratulates Senior Counselor to the President Stephen Bannon during the swearing-in of senior staff in the East Room of the White House on January 22, 2017 in Washington, DC. / MANDEL NGAN/AFP/Getty Images
Trump’s well-known advisor, famous for citing Adolf Hitler as a source of inspiration and driving Trump’s victory through campaigns designed by Cambridge Analytica, has now taken the promotion of cryptocurrency quite seriously.
 
According to The New York Times, Steve Bannon has a view of cryptocurrency that is more philosophical and political than pragmatic:
“It’s disruptive populism … It takes control back from central authorities. It’s revolutionary.” said Steve Bannon during an interview at his Capitol Hill townhouse in Washington.
This perspective, similar to that of the great proponents such as Roger Ver and John McAfee, has strong support in the political sectors linked to the extreme right.
According to Steve Bannon, the use of cryptocurrency is also an excellent tool for a better exercise of politics in general:

“It was pretty obvious to me that unless you got somehow control over your currency, all these political movements were going to be beholden to who controlled the currency,”

According to the New York Times, in addition to the famous political tours, Steve Bannon arranged interviews and closed meetings with significant crypto investors.
The well-known newspaper points out that in several of these interviews, conducted through Bannon & Company, Steve Bannon “said he had a “good stake” in Bitcoin.”
Bannon does not provide information about the projects he works on. His investments in cryptos and ICOs are secret because “he worries that the controversy that comes with his name could have a bad impact on projects just getting off the ground.”
Steve Bannon: Controversial but Well Prepared
Steve Bannon has taken on the task of researching not only bitcoin but also the possible consequences of the massive adoption of cryptocurrencies.
After an interview with the Ikigai hedge fund, Timothy Lewis, one of its co-founders was surprised about how well Steve Bannon knew the crypto sphere:
“I didn’t know what to expect going in, but he had clearly done his homework,”
Timothy Lewis
Steve Bannon’s vision and interest in cryptocurrencies are not a good sign for some people in the crypto sphere who think that Trump’s friend’s bad reputation can hurt the ecosystem:

“It almost seems like a natural progression for a man who gained prominence by shoveling out unfounded conspiracies to now shilling complex technology and financial instruments to an unsophisticated investing public,” said Colin Platt, a cryptocurrency researcher, and adviser.
Colin Platt
The post Steve Bannon is Buying The Dip on Cryptos appeared first on Crypto Coins Reports.

The post Steve Bannon is Buying The Dip on Cryptos – Crypto Coins Reports appeared first on Crypto coins reports.

Here Is Why Ripple (XRP) Is Also Not a Security – Crypto Coins Reports

The Crypto-verse is elated after the Director of The SEC’s Division of Corporate Finance, William Hinman, said that Ethereum (ETH) is not a security based on how it is structured in a decentralized manner. Mr. Hinman said that:

When we think about how Ether today is operating, at least, we see a highly decentralized network, not the type of centralized actor that characterizes securities offerings. In its current state, we don’t see value regulating it.

ETH joins Bitcoin (BTC) as the only two coins the SEC has openly excluded from being classified as securities. This then brings us back to the other discussion as to whether Ripple (XRP) fits the bill of being classified as a security.
There is also a pending Lawsuit against Ripple that was filed by a disgruntled trader. The plaintiff in the lawsuit, purchased 650 XRP on January 5th and later sold the entire amount on January 18th sustaining a 30% loss due to XRP dipping in value during the same period. The plaintiff claims that he did not expect to lose money due to the promotional practices of Ripple’s parent company.
In response to the above lawsuit claim, Brad Garlinghouse responded via an interview with CNBC that:

Whether or not XRP is a security shall not be dictated by one lawsuit. The SEC is the governor of that. I think it is very clear that XRP is not a security. It exists independently of Ripple the company. If Ripple, the company shut down tomorrow, XRP will continue to exist.

Ripple’s Chief Market Strategist, Cory Johnson, also echoed Garlinghouse’s view when he explained to CNBC that:

We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law. We’re 100 percent clear, it’s not a security. We don’t meet the standards.

In conclusion, the declaration by the SEC that Ethereum is not a security, makes the case that Ripple (XRP) is also not a security. Brad Garlinghouse and Cory Johnson have clarified this on numerous occasions. This means that the pending lawsuit against the parent company, Ripple, stands on a shaky foundation moving forward.
Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.
The post Here Is Why Ripple (XRP) Is Also Not a Security appeared first on Crypto Coins Reports.

The post Here Is Why Ripple (XRP) Is Also Not a Security – Crypto Coins Reports appeared first on Crypto coins reports.

Tom Lee Blames Expiring Futures Contracts for Bitcoin Price Decline

Tom Lee has finally added his voice to the current Bitcoin price dip. The Fundstrat chief researcher said that the expiration of Bitcoin futures contracts might have caused the recent BTC price decline. The number cryptocurrency shaved more than $1,000 from its value in the last one week.
Relationship Between Expiring Bitcoin Futures and BTC Price
According to Lee, there is an apparent relationship between the expiration of Bitcoin futures and the price of BTC. BTC usually drops by an average of 18 percent in the ten days leading up to the expiry of Bitcoin futures. Lee also noted that the price typically rebounds six days after the contracts expire.
Lee revealed that there has a total of six expirations since Cboe launched its Bitcoin futures contracts. The most recent of these expirations was on June 13 which coincides with the current price plunge. On June 10, BTC took a considerable tumble, losing 10 percent in a matter of hours. In his June 14 report, Lee referred to Justin Saslaw’s theory and said that Bitcoin “falls into expiration.”

Thus, a trader goes long on Bitcoin but shorts futures when close to expiration date, they can earn a decent profit. According to Lee, this is because there is always a massive selloff at this time, causing the price drop and making the short position on futures highly profitable. Most holders will elect to sell at volume weighted average prices (VWAP) to reduce tracking error.
Both Cboe and CME launched their Bitcoin futures contracts in December 2017 in what was heralded as a big step for Bitcoin. The launch of these futures contracts coincided with a massive bull run for BTC that saw the price almost eclipse the $20,000 mark. Since the emergence of futures tied to BTC, calls have intensified for the introduction of Bitcoin ETFs. However, regulatory bodies like the United States SEC continue to delay approval.
An Intersection of Woes
The expiration of futures contracts may not be the only reason for the BTC price plunge. Lee admits that there has been a combination of factors leading to a “gut-wrenching” weakness in the number one cryptocurrency. According to Lee, the recent futures contracts expiration coincided with a period of low cryptocurrency liquidity and slow institutional adoption. Lee believes that there is more net supply in 2018 due to ICOs, capital gains taxes, and mining rewards. The slow pace of institutional tools has also slowed down the pace of Bitcoin’s growth.
In the midst of the decline, some commentators placed the blame for the BTC price plunge to the Coinrail hack and price manipulation. The Coinrail hack explanation has since been debunked seeing as the South Korea-based platform isn’t a major player in the market to cause such a significant decline. A recently published research paper by the University of Texas claimed that Bitcoin prices were inflated by manipulating the price of Tether (USDT).
Do you agree with Tom Lee’s position on expiring futures contracts being the cause of the latest BTC price plunge? Keep the conversation going in the comment section below.
Image courtesy of CoinMarketCap.
The post Bitcoin Price Drop: Tom Lee Blames Expiring Futures Contract appeared first on Crypto Coins Reports.

The post Tom Lee Blames Expiring Futures Contracts for Bitcoin Price Decline appeared first on Crypto coins reports.

SEC Official Says Ether is Not a Security – ETH Rises Above $500

William Hinman, a top official of the United States Securities and Exchange Commission (SEC) has recently declared that Ether (ETH) is not a security. Hinman disclosed this at an All Markets Summit organized by Yahoo Finance on Thursday, 14 June 2018.
Ether is not a Security
According to Hinman, Ether is not security. Hinman is the director of the corporate finance division at the SEC. The SEC director declared that based on federal guidelines, ETH could not be classified as a security. Commenting on the status of the cryptocurrency, Hinman said:
When we think about how ether today is operating, at least, we see a highly decentralized” network, not the type of centralized actor that characterizes securities offerings. In its current state, we don’t see value regulating it.

Despite his characterization of ETH as not a security, Hinman cautioned stakeholders to understand that asset classification is not a static issue. Referring to the cryptocurrency itself, he described it as an “evolving coin.” Hinman also said that Bitcoin is also not a security. This statement echoes the declarations made by SEC chairman Jay Clayton during a recent CNBC interview. According to Clayton, cryptocurrencies like BTC that can be used to replace fiat, cannot be regarded as securities. At the time, Clayton refused to comment on specific altcoins when pressed by CNBC’s Bob Pisani.
What Does this Mean for ICO Tokens?
ETH might not be a security, but the SEC doesn’t seem to be extending that same classification to ICO tokens – many of which run on the Ethereum blockchain. Commenting on ICO tokens, Hinman said that digital currencies that claim to be utility tokens still function as investment assets and can be sold as a security. It is the SEC’s mandate to regulate the offering and sales of such assets. According to Hinman, merely labeling a token as a utility doesn’t make it not to be a security in the eyes of the SEC.
According to Clayton, ICO tokens are securities. Thus, the SEC has been on the warpath with ICOs since late 2017. A group of Silicon Valley-based cryptocurrency stakeholders recently initiated lobbying efforts in Washington, to prevent the characterization of all ICO tokens as securities. The fear is that such an occurrence would be inimical to the growth of the nascent industry.

WOW – ether is not a security, says SEC. this basically opens the door for every ICO to claim they are not a security. CRAZY.https://t.co/qyr66J7NUw
— Meltem Demirors (@Melt_Dem) June 14, 2018
https://platform.twitter.com/widgets.js
Naturally, the reaction on social media to the news has been considerable with many commentators airing their views. A lot of the comments center on the fate of ICO tokens in light of Hinman’s declaration as well as how the new will affect the price of Ether.
Price of Ether Spikes

In the few hours since the news broke out, ETH has spiked by more than nine percent taking it above the $500 mark. The price of Ethereum had previously dipped below $500 on June 13 as the cryptocurrency market declined over the last five days. Analysts like Brian Kelly believe the introduction of ETH futures is imminent.

*CBOE SAYS SEC'S COMMENTS REMOVES OBSTACLE TO ETHER FUTURES
— Brian Kelly (@BKBrianKelly) June 14, 2018
https://platform.twitter.com/widgets.js
If Ether is not a security, does this give legitimacy to ICO tokens running on the Ethereum blockchain? Will other altcoins like Ripple (XRP) be characterized as not being securities? Keep the conversation going in the comment section below.
Image courtesy of SEC.gov, Twitter (@Melt_DEM), (@BKBrianKelly), and CoinMarketCap.
The post Ethereum Pumps as SEC Official Says Ether is Not a Security appeared first on Crypto Coins Reports.

The post SEC Official Says Ether is Not a Security – ETH Rises Above $500 appeared first on Crypto coins reports.

With Stock Market Stagnation, A Crypto Breakout is Imminent, says Investment Expert – Crypto Coins Reports

With the concern in the crypto-verse regarding the ongoing crypto market turmoil caused by the Coinrail hack and 4 crypto exchanges being investigated by the CFTC, Crypto Coins Reports managed to get the insight of a seasoned investment, Brenda Whitman, who deals with IRA (Individual Retirement Accounts) centered on precious metals and cryptocurrencies.
Ms. Whitman is a Registered Financial Consultant and the Interim CEO at Coin IRA as well as its parent company of Goldco. CoinIRA, has tailor made Bitcoin IRAs that can be bought using traditional IRA or 401k pension accounts. Ms. Whitman has over 13 years experience with cryptocurrency and precious metal IRAs. She was very optimistic about the cryptocurrency industry and was quick to reference the current turmoil as ‘growing pains’.
She had this to say with regards to the above and the CFTC investigations causing a bit of uneasiness:

The cryptocurrency industry is still in the throes of a massive growth spurt. That means that there will be some growing pains, among them the price volatility that concerns a lot of investors. That has also manifested itself in CFTC’s investigation into possible price manipulation on or by exchanges. It’s the fear of cryptocurrency trading being a rigged game, more than fears of hacking, that has led to recent selloffs and price drops.

She also expressed concerns that the lack of direction by the SEC was causing further uncertainty:

The major unknown going forward…is the threat of regulatory action. Government agencies have accepted that cryptocurrencies are here to stay, but that doesn’t mean that some of them won’t be subject to further regulation.

With respect to the current discussion of both Ethereum and Ripple being classified as securities, Ms. Whitman mentioned that:

If SEC rules those to be securities then it could push future cryptocurrency development further along the model of Bitcoin rather than that of Ethereum.

This is due to the fact that the Ethereum project was itself a crowdfunded endeavor. The platform in turn provides an avenue for ICOs which are also crowdfunded projects. This then might classify Ethereum and subsequent ICOs, as securities worthy of regulation: a process that might cause a legal ripple effect on most crypto projects that started out as ERC20 tokens.
She however mentioned the reluctance of regulatory bodies to act on such and the effects of the delay on the crypto-markets:

But given how slowly regulators tend to move, we foresee underlying market forces remaining the major factor in driving cryptocurrency prices higher in the immediate future.

When asked about the general direction of the crypto-markets and the discussion of Institutional investors deciding to invest in the crypto markets, she said that:

With stock market stagnation, Federal Reserve monetary tightening, and higher interest rates, the stage is being set for a cryptocurrency breakout as more and more investors will move out of stocks and bonds and look to alternative assets to protect their investment wealth.

In a nutshell, the crypto-verse is experiencing some growing pains such as hackings and investigations by regulatory authorizes. However, as the regular stock markets continue to stagnate, traditional investors are bound to switch to the crypto markets in search of more profitable investment options.
Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.
[Photo source, finance.yahoo.com]
The post With Stock Market Stagnation, A Crypto Breakout is Imminent, says Investment Expert appeared first on Crypto Coins Reports.

The post With Stock Market Stagnation, A Crypto Breakout is Imminent, says Investment Expert – Crypto Coins Reports appeared first on Crypto coins reports.