CRYPTO NEWS

The SEC is Angling to Take Authority Over All Ethereum Transactions in SPRK Suit (Opinion)

On Monday, the Securities and Exchange Commission filed a regulatory action against Ian Ballina. The computer engineer and data scientist has appeared prominently on investment programs such as CNBC, Forbes, Business Insider, and Entrepreneur Magazine.

SEC Hammers Sparkster Coin for Improper Disclosures

The SEC filed the civil complaint in Austin, Texas, over the initial coin offering for the Ethereum-based token Sparkster. The commission alleges improper consumer disclosures regarding Ballina’s compensation from the 2018 ICO:

“[Ballina] claimed he could help people ‘make millions with initial coin offerings…’ [Further he] failed to disclose the compensation he received from the issuer while he publicly promoted the tokens. He also failed to file a registration statement with the SEC for the tokens that he re-sold using an investing pool that he organized.”

On the popular crypto price tracker, CoinMarketCap, the page for SPRK has no price listed. Further, it says, “Market data is untracked. This project is featured as an ‘Untracked Listing.’

That means the Ethereum token doesn’t meet all of CMC’s guidelines for tracked listings. These include leveraging cryptography and decentralized consensus mechanisms to maintain peer-to-peer (P2P) ledgers for digital currency. CMC also only tracks cryptos with a functional website and block explorer. Moreover, coins “must be traded publicly, and actively traded on at least one (1) exchange (with material volume).”

Sparkster CEO Sajjad Daya reached a settlement to pay out $35 million to defrauded investors. That settlement came on Tuesday, just a day after the SEC filed its complaint.

Takeover Authority Over All Ethereum Transactions?

After the dust settled on the civil action, Wednesday’s closer look at the suit by the industry yields an interesting possibility. The SEC appears to be gearing up to take all Ethereum tokens and transactions under its jurisdiction.

In the 69th section of the filing, the commission advanced a novel legal theory regarding the regulation of cryptos:

“[The investors] sent their ETH contributions to Balina’s pool. At that point, their ETH contributions were validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. As a result, those transactions took place in the United States. [bold emphasis added]”

While Sparkster is headquartered in the Cayman Islands, the SEC’s theory is that the plurality of Ethereum nodes in the U.S. means all Ethereum tokens and transactions take place in the United States. This is another prong in an SEC sweep to take jurisdiction over Ethereum. That includes a recent warning by the SEC chair that the merge to proof-of-stake makes Ethereum a security.

The post The SEC is Angling to Take Authority Over All Ethereum Transactions in SPRK Suit (Opinion) appeared first on CryptoPotato.

Bitcoin (BTC) Price To Reach In Millions By 2030, Says Analyst

A well-known, conservative crypto analyst gave a bullish commentary about the price of Bitcoin. According to a YouTuber, further proliferation of the digital asset will cause a steady rise of BTC to a million dollars. On a YouTube video, InvestAnswers signaled that BTC is approaching diminishing returns. Diminishing return is when an asset gets to::Listen

A well-known, conservative crypto analyst gave a bullish commentary about the price of Bitcoin. According to a YouTuber, further proliferation of the digital asset will cause a steady rise of BTC to a million dollars.

On a YouTube video, InvestAnswers signaled that BTC is approaching diminishing returns. Diminishing return is when an asset gets to a point where increased future investment yields less profit. The crypto analyst said that BTC yields investors five times less profit every new market cycle in comparison to the previous one. 

Related Reading: Bitcoin Price Crashes To $19,000, But Stays Strong Against Other Assets

Bitcoin Primed To Trade For Millions Of Dollars By The Year 2030

However, the analysts gave a different view on bitcoin that was in contrast with the apparent diminishing return of the digital asset. They cited that the value of networks grows as the number of participants increases, according to Metcalfe’s law. 

If Bitcoin follows the trend of disruptive networks like cellphones and the internet, applying Metcalfe’s law projects a bullish case scenario for bitcoin. In that vein, a modest consideration of BTC’s future price will put it at over a million dollars by the year 2030. 

The host made it clear that this prediction was strictly based on the scientific possibility that Metcalfe’s law holds for the number one cryptocurrency in the world. It is, however, not subject to wishful thinking. According to the analyst, the bitcoin digital assets’ adoption follows the historical patterns of preceding technologies. 

Quite like InvestAnswers, there have been several sightings of multiple users across the internet, supporting the future appreciation of bitcoin’s price. 

Bitcoin’s price plummeted to the $19,000 level after surpassing $20K. | Source: BTCUSD price chart from TradingView.com
Crypto Market Cycles 

Since speculation says bitcoin is still bullish in the long run, many are looking forward to taking advantage of the next market cycle. 

The market cycle explains the ebb and flow of a market. Usually, new markets have a slow start. They pick off from a point where people show little or no interest. But as interest in the asset starts to increase, demand rises, and its price starts to inflate as a result. A complete market cycle has four phases: accumulation, markup, distribution, and markdown. 

Related Reading: Do Kwon Statement: A Possible Trigger For Terra Tokens Price Surge

As mounting interest takes the price of the commodity to new highs, it gets to a point where it eventually peaks. Investors become satisfied with their returns. And then sell off the asset causing tremendous sell pressure. Therefore, the price begins to drop. After one market cycle ends, the next begins shortly.

Bitcoin Price Action 

Bitcoin has roughly ranged between $22,000 and $18,000 for most of the 3rd quarter of this year. Investors are keenly eyeing the condition of the broader market as a go-ahead to pump funds into risky assets like bitcoin.

Featured image from Pixabay and chart from TradingView.com

The SEC is Angling to Take Authority Over All Ethereum Transactions in SPRK Suit (Opinion)

Shopping cart
There are no products in the cart!
Continue shopping
0