What Is Happening To Crypto Now? - Part 2
The second part of the discussion throws light on the Bitfinex and Bitmain. What have these two got to do with Bitcoin's price? Learn more about it.
And Now We Bring More Info On The State Of Bitcoin
As reported by Bloomberg, the US Justice Department is now looking into Bitfinex for manipulating the price of Bitcoin where the belief is that Bitfinex has allegedly been performing wash trades that are propped up the price of Bitcoin to the previous $20,000 heights. As Bloomberg wrote, researchers claimed that Tether was used to buy Bitcoin at pivotal periods whereas about half of Bitcoin’s 1,400 percent gain was attributable to such transactions as Griffin briefed the CFTC on the findings earlier according to two people with direct knowledge of the matter.
Pointing to the primary reason Bitcoin and crypto are currently in free fall, this alone comes without artificial controls the real price of the commodity becomes clear with a Twitter user called Bitfinex’d who has been calling for the death of Tether for years as he is not very bullish on the currency. He said he didn’t know the when but surely Tether is dying along with Bitfinex.
Is It All About The Coin?
SEC is sick of fake utility tokens as we learned earlier while the going comes to be great for ICOs that are over the past few years with multiple companies raising millions if not billions in a few minutes as these salad days are over and arguably the seed-stage start-up comes with millions of dollars in cash that is more like a small VC than the production company that is ultimately the good times which couldn’t last.
In this context, the SEC ruling means that folks with a lot of cryptos can't slide it into investments anymore as this also means however that those same companies are thereby more serious about the products as well as the production rather than simply the fundraising.
Dampening the hype is the SEC intervention as in a market that thrives on hype, this is a bad thing, and said it does mean that things are becoming a lot clearer for smaller players in the space as the folks who haven’t been able to raise seed and are instead praying that token sales are the way forward. And now as they are buttoning up what comes to be the token sale for the future users is what they are truly doing and by creating regulation around it, they begin to prevent the Wild West activity as seen so far and ultimately it is a messy process whereas a necessary one. As said by the crypto speculator Carl Bullen, it all contributes to the greater BTC antifragility as they need the worst actors imaginable as they have finally got them.
What Has Bitmain To Do In This Scenario?
Involving Bitmain comes one other data point as bitmain makes cryptocurrency mining gear and most recently planned a massive IPO which was supposed to be the biggest in history instead of the company putting these plans on hold.
Bitmain is currently folding the cryptocurrency it mines interestingly back into the company creating a false scarcity as the plan is however for Bitmain to begin releasing the Bitcoin mined into the general population and thereafter changing the price drastically. The Bitmain IPO according to an investor would have been a massive driver of Bitcoin success which is now on ice.
With an apocryphal tale, it is clear that these chicken and egg problems are only going to get worse and successful start-ups face down a bear market as they are less likely to take risks and we all know crypto is all about risk.
Finally, Is It All About Abandoning Hope, Eh?
It is finally known that as crypto and the attendant technologies are ultimately creating an industry where it is connected directly to those stores of value, either real or imagined and has enervated it to a degree unprecedented in tech, using a common comparison between Linux and Blockchain, where Linus Torvalds didn’t make millions of dollars overnight for writing a device driver in 1993. Along with the entire open-source industry, he made billions of dollars over the past 27 years as the same should be true of crypto but the cash is clouding the issue.
Many thinkers in the space ultimately say the question isn’t whether the price goes up or down, whereas instead of primary concern it is whether the technology is progressing. As the crypto guru, Jameson Lopp says, crypto capitulation is once again upon us whereas before the markets can rise again, they must pass through the darkest depths of despair as investors will continue to speculate while developers continue to build.