SEC Rallying International Cooperation To Crack Down On Dodgy ICOs
initial coin offering (ICO) sector has been instrumental in setting up the crypto industry. Coins, small and big, have been able to present their case for public attention and funds. This has led to some extraordinary gains, both in terms of financial, for the initial backers, and the technology offered by these projects. However all this, unsurprisingly, has attracted unwanted attention from scammers and con artists. Things today are at a stage where more than 75% of ICOs in 2017 were marked as scams. This year almost $5 million was lost to some sort of a con job. Thus when the head of U.S. Securities and Exchange Commission (SEC) discussed the importance of international cooperation to ensure successful investigations into these plays and general vigilance with the ICO sector, it was well received.
Certa Bonum Certamen
Speaking at the prestigious Harvard Law School, Steven Peikin, co-director of the enforcement division was discussing the challenges faced by his team when dealing with the unenviably “daunting task of ferreting out misconduct and, where appropriate, recommending civil enforcement actions that variously seek injunctions or cease-and-desist orders, penalties, disgorgement of ill-gotten gains, suspensions and bars of bad actors, and the temporary suspension or delisting of securities.”
In his speech, the head of SEC discussed the two most common types of violations of the securities law that these offerings typically try to pull off. The first one might meet the textbook definition of what a security is, but as he points out, it is ” being sold, brokered, or traded to U.S. investors without complying with the registration requirements of the federal securities laws.” The second is more damaging to the whole industry, where “ICOs appear to be simply outright frauds — where the issuers are using excitement around the crypto-asset space to simply rip off money from investors.”
Mr. Peikin had no illusions about the possible hurdles in the pursuit of justice. However, he was confident that, with international collaboration, they will be able to fight the good fight and bring fraudulent ICOs to justice. The simple fact that many of these sham offerings are located outside borders of the U.S. makes the help of overseas regulatory bodies essential. The SEC feels this helps everyone as the money that is ripped off, is from investors everywhere.
Canada Shows How It Is Done.
To highlight his point about international assistance, Mr. Peikin noted its immense value to the SEC in regulating the ICO sphere. He gave the example of the friendly Canadian neighbors, where regulators in Quebec, the Autorité des marchés financiers actively assisted his team. This was directly responsible for exposing the fraudulent Plexcoin token sale and allowed them to charge two Canadian residents. This he hopes will let them set a precedent and help them foster a better understanding with other regulators so that they can develop other cases.
Its Still A High-Risk Investment
From a modest $95 million, in 2016, ICOs have raised more than $20 billion today. This astronomical rise has been due to the booming interest in blockchain and allied fields. Although the number of ICOs have recently, as Mr. Peikin suggested, “exploded from a mere concept to a phenomenon.” It is still like any other industry, a perilous venture.
“The growth in the ICO market can obscure the fact that these offerings are often high-risk investments,” he warned. “The issuers may lack established track records. They may not have viable products, business models, or the capacity for safeguarding digital currencies from theft by hackers. And some of the offerings can be simply outright frauds.”
The industry has been crying out for stricter regulations and any cross-border backing that hinders the acts and actions of those with nefarious intentions, is always welcome. Whether this is a one-off act or the building blocks of a shared future remains to be seen.
Bitcoin Price Dumps Can Be Identified by One Simple Method, Notes Analyst
The Bitcoin price often creates repetitive patterns that can be identified to predict future price movements. One such pattern is created by a long bearish upper wick and a moving average (MA) rejection.
The Bitcoin price has been known to be very volatile. Therefore, when trading, it is important to use several methods to reduce your risk — such as using stop losses, low leverage if you are margin trading, and proper trade sizing.
However, especially in the case of stop losses, significant fluctuations in the form of wicks can often trigger them. In this case, the price moves very quickly in one or the other direction before swiftly reversing. This effectively stops out traders from their current position.
However, wicks create several important patterns, which when used along with indicators can help in predicting future prices.
Cryptocurrency analyst and trader @cryptopeppa suggested that a pattern of upward wicks an a rejection once they reached the 100-hour exponential MA suggests that the Bitcoin price will decrease.
Let’s see if we can find more of these patterns and if they can be successfully used to predict the Bitcoin price.
Bitcoin’s Wick Movements
In the pattern, the Bitcoin price first initiates a downward move. After some consolidation, it begins an upward move — which is ultimately unsuccessful and leads to the creation of a long upper wick. The wick stops once it reaches the 200-hour moving average (MA) and an important Fib level. In the case below, it was the 0.5 Fib level.
Additionally, after the wick, the Bitcoin price made two more attempts at breaking out above the MA. However, both were unsuccessful. It is imperative that the price reaches a close above the MA for the reversal to be initiated.
Another similar pattern transpired on November 17. After a decrease, the Bitcoin price made an attempt to retrace upwards. The first attempt ended once the price reached the 100-hour MA and the 0.618 Fib level, similar to the previous move.
However, the Bitcoin price made another attempt, which retraced fully to the pre-breakdown prices. However, the movement also ended with the creation of a long upper wick.
Another full retracement occurred in September.
This time, after a decrease, the Bitcoin price made a double top at the 0.618 level. This was below the 100-hour MA.
Afterward, it made an attempt at moving above the MA, which ended in a similar wick. This decrease was more easily identified since it was combined with a bearish divergence in the RSI.
To conclude, wick rejections at a significant MA do not necessarily mean that the Bitcoin price will dump. Previous market structure plays a big role in determining if they will.
A rapid price decrease followed by an attempt at a reversal, in which a wick is created a significant Fib level and MA, very often leads to a dump. The potential for further decreases is strengthened by the presence of a bearish divergence in the RSI.
BTC/USD Technical Analysis: Nice bounce off the intraday resistance point
- In another heavy day for BTC/USD technical analysis still plays out.
- Bitcoin is now down 3.88% in the session after 7K was retaken to the upside.
BTC/USD 10-Minute Chart
On a day like this, it is hard to analyse Bitcoin on an intraday perspective but the support and resistance levels seem to be holding.
For the second day in a row, BTC/USD suffered from heavy losses and dropped another 3.88% adding to Thursday’s 5.77% fall.
7,501.46 was a support zone early in the EU session and as price moved higher toward the level the bears came back in and shorted Bitcoin.
Now bulls will be watching the consolidation high of 7,215.49 to see if the same thing happens to support upside trade.
On the daily charts, the trend is still heavily bearish but some Bitcoin analysts have noted there is often a downside flush out before a move higher.
This pattern was noted on both the 28th July and 23rd October this year.
|Today last price||7319.3|
|Today Daily Change||-296.49|
|Today Daily Change %||-3.89|
|Today daily open||7615.79|
|Previous Daily High||8114.54|
|Previous Daily Low||7393.27|
|Previous Weekly High||9137.8|
|Previous Weekly Low||8369.16|
|Previous Monthly High||10484.7|
|Previous Monthly Low||7300.54|
|Daily Fibonacci 38.2%||7668.79|
|Daily Fibonacci 61.8%||7839.01|
|Daily Pivot Point S1||7301.19|
|Daily Pivot Point S2||6986.6|
|Daily Pivot Point S3||6579.92|
|Daily Pivot Point R1||8022.46|
|Daily Pivot Point R2||8429.14|
|Daily Pivot Point R3||8743.73|
Bitcoin (BTC) $10K Coming With $100K on the Horizon, Says Cardano and Ethereum Creator Charles Hoskinson
Charles Hoskinson, the creator of Cardano and co-creator of Ethereum, says he’s waiting for Bitcoin FUD to die down after the world’s leading cryptocurrency dropped over $1,000 in two days, plunging from $8,193 to a low of $6,955, according to data compiled by CoinMarketCap.
Says Hoskinson via Twitter,
We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future.”
Appearing in a live stream from Dubai, Hoskinson confirms that developments for Cardano, a public blockchain that uses Ada cryptocurrency to send and receive digital funds, as well as the project’s cryptocurrency wallet Daedalus, are on track.
“We’re really happy about Daedalus. We’re really happy about the code quality. We’re happy about how quickly we’ve been able to move this month and how much we’ve learned from moving this fast this month.
We’re really in a good stride and so next year is going to see a lot releases. It’s going to be easy for us to get these releases out and we’ll just continue getting more feature rich. We’re also looking to some state-of-art technology that wasn’t necessarily in our roadmap.”
“Cardano is kind of a financial operating system for those who don’t have one.”
Hoskinson says the platform will offer an end-to-end solution that can be in full compliance with local regulations.
Building infrastructure to complete a major paradigm shift in the world of global payments, financial platforms and monetary systems takes time. Before mass adoption, computer scientists are tasked with years of research, coding and testing.
With several research threads in the Cardano ecosystem already coming to an end, Hoskinson says he’s looking ahead toward implementation in 2020.
“Other things are on the list like Ethereum interoperability. It’s really not hard to do. That’s going to be a big discussion in the December summit that we do.”