The last week was really a week of ups and downs, as well as the news, which fall a little worse on the future of the cryptocurrencies. Let's gather the news and compare what this could mean for DeepOnion.
Mt. Gox liquidates Bitcoin and Bitcoin Cash
Last week it became known that the bankruptcy trustee of Mt. Gox, Nobuaki Kobayashi has sold the first units of Bitcoin and Bitcoin Cash. He had sold a total of 35,000 Bitcoin and 34,000 Bitcoin Cash since the end of September. The average selling price for a Bitcoin was approximately 10,100 US dollars. Kobayashi stated in his statement that he had tried to achieve the highest possible price for the sale of BTC and BCH.
As a result, the bitcoin exchange rate of just under $20,000 in December/January could no longer be maintained and as a result of the annual events such as the Chinese New Year celebrations, Bitcoin and Altcoins were unable to recover properly.
Kobayashi is still sitting on a large part of the Mt. Gox bankruptcy estate, around 165,000 bitcoin, as well as approximately the same amount of bitcoin cash and bitcoin gold. In the next few months, the trustee intends to liquidate the remaining bitcoins with court approval.
Many experts therefore believe that the planned sale is likely to trigger a domino effect, which will lead to a decline in the price of bitcoin and consequently, due to the strong influence of bitcoin on the market as a whole, to price losses for all cryptocurrencies.
It remains difficult to judge whether the expectation alone will lead to a further decline in the share price or whether the actual sale is the real cause. As always, however, the expectations of investors certainly play an important role.
Also with the upcoming feature updates of DeepOnion we will certainly need some time to break the $100 barrier. However, if this scenario should happen, many of the Altcoins will lose their right to exist and simply be off the market.
SEC regulatory measures
Last week, the U. S. Securities and Exchange Commission (SEC) made it clear that cryptographic currencies, if classified as securities, are covered by the U. S. Federal Securities Act. As a result, U. S. crypto exchanges offering securities on their platform must also apply to the SEC for registration.
Consequently, you would also be subject to the strict supervision of the Securities and Exchange Commission (SEC). Many investors may fear a tougher course of action and a negative impact on the cryptocurrency market, as evidenced by John McAfee's latest reaction. Ripple CEO Brad Garlinghouse, on the other hand, explained that the market had overreacted to the SEC's announcement.
Of course, this will not apply to DeepOnion. DeepOnion is not a security and will never be classified as such, because it is only built as privacy coins and does not support / rely on a physical project in the real world. It will only be usable as an anonymous cryptographic currency for online purchases, transactions and more.
Alleged Binance Hack
The alleged binance hack led to a sudden and steep crash last week. In the afternoon of March 8th, rumors spread about a hack from Binance.
Stock exchange users reported that their crypto currencies were traded without their permission or have completely disappeared. There was a suspicion that Binance's Trading API was hacked to allow trading bots and third-party services to access the stock exchange's user accounts.
However, it turned out to be the cause of a phishing attack, where credentials were stolen by many Binance users due to careless user behavior. As Binance's automatic risk management system interfered, the hackers were unable to make any payouts, preventing worse.
Once again, it showed how sensitively the market reacts to negative news, especially hacks.
In the end, everyone should learn from it and double and triple secure themselves, as well as keep an eye out for such supposedly official emails or links from crypto stock exchanges.
Japanese authorities take action against 7 crypto exchanges
Another factor could be the news coming from Japan that five cryptocurrency exchanges have been sanctioned and two other exchanges have been temporarily withdrawn due to inadequate security measures (anti-money laundering (AML) and Know Your Customer (KYC)).
With Bit Station and FSHO, the violations were so serious that they had to stop operating for one month with immediate effect. Coincheck, Mr. Exchange, GMO Coine, Tech Bureau and Bicrements have received provisional approval and are required to make improvements.
There are currently 32 crypto currency exchanges in Japan, 16 of which are licensed operators. The rest of them have provisional clearance.
Given that Japan is one of the most influential countries in the cryptocurrency market, action against smaller exchanges could have had an impact on the market as a whole.
My conclusion:
Cryptocurrencies are quite volatile on both good news and bad news. You should therefore only invest in Krypto if you have properly informed yourself about the project and have money that you can put up with in case of a total loss.
I personally have invested in the anonymous Privacy Coin, DeepOnion, and I believe in the future of the Coin. In the next few weeks a lot of new updates will be released and the developers are already working on new things. The community is damned strong and with the new VoteCentral platform will have a strong influence on the developmental future of the coin.
If I have aroused your interest, visit DeepOnion at https://deeponion.org!
- to be continued...
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