There are currently around 1,500 cryptocurrencies for sale listed on the website coinmarketcap.com. This means that there is a large amount of potential for the market to be full of criminal activity, but it also has a large amount of potential that far outweighs the prior. Around 1,000 of those coins are currently priced less than $5,w which means that could face large price swings in the near future.
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This also means that they are easier to keep under the radar, making them candidates for manipulation throughout the market. One coin in the market which previously could almost guarantee a 40% per month gain, has now imploded in value. The coin according to the report “hit a high of $509.99 on December 17 last year but is now around $20, falling 96% in just over a month. Its decline isn’t related to the SEC as BitConnect closed its lending and exchange platform.
Even at $20 it still has a market capitalization of $180 million so there is still a lot of value that could be lost.” A spokesperson from the SEC stated on the subject of cryptocurrency that “Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies.
If any person today tells you otherwise, be especially wary.” Given that the market is so new, this type of regulation action is natural, but that doesn’t mean that it is going against the will of the people who are involved in the market. The hopes are high that the investors and the SEC can find some sort of middle ground in the near future.