MARKET UPDATE: ROLLING IN THE DEEP ***Updated***
Another Chart bites the Dust
It has gone from 10.6K low down to 9.4K in a couple of one-hour candles. It is now rebounding on the 9.6 level; it has to be seen up to which level will last. (update, it appears to be stalled at this level.
Possible causes
I would like to check the facts behind such a sudden and unexpected move;
1. The Awake of the Ninjas
According to Reuters; several Japanese exchanges are being investigated for alleged fraudulent activities
"Japan’s financial regulator will slap administrative punishment notices on several cryptocurrency exchanges this week and plans to force some to suspend their business, people with direct knowledge of the matter said on Wednesday."
Most likely the crackdown is due to the recent Coincheck hack, which affected around 530mm USD in digital assets. Added to this, there are many exchanges which do not comply with AML and KYC regulations, so apparently is time to get full in for the "Rising Sun" authorities.
2. Was Binance hacked?
The sophistication is such, that, the scheme was the following; Grab your API key, then use your funds (Hacker) to buy VIA, then enter into the stolen acc., take all their coins into VIA, since it has low liquidity the price would climb high. By that moment you have already set a sell order at an exhorbitant price, once reached you have just turned the victim's money into your selected coin leaving the victims holding a VIA bag which is completely worhtless.
"We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak,"
As a matter of fact, I am already not surprised that another hack has happened. But, at the same time ask myself where is heading this new market if a hack like this happens every month, or even worse, twice a month. Who will feel secure depositing a large junk of their savings into this?
Original story link
There is an update released by Binance Twitter's verified account
Note that he is using a post from Steemit to educate people on how to secure their exchange acconts!!!
3. SEC hits one more time
Even when the SEC hearings were quite positive some weeks ago, the moods have changed internally. Now, the Securities Comission has stated that there are many exchanges that are unregulated and according to them, could potentially do whatever they please with your money.
The SEC has made clear that a crack down is around the corner for companies running exchanges (Coinbase... hello!). Even further, the SEC agrees that most companies running ICOs are selling unregulated securities. This affects directly the Exchanges which due to being selling securities should be regulated under any of the following legal ways; as a national securities exchange, an alternative trading system (ATS) or a broker-dealer.
Accoriding to the SEC, the problems lay on the following points;
- Exchanges may appear to investors as SEC-regulated companies;
- seem to be professional in the selection on the listing of new assets, but this is not a standard or regulated process, any authorithy can give no guarantess;
- the existance of an "order book" may be entirely a facade, underliying rusty or untrustworthy mechanisms so that every investor could be at risk;
For a complete overview of the matter visit the SEC official post.
Today reminds me a little bit to the beginning of the significant correction when appeared that all the constellations came together to release the FUD Kraken on the market. Truth is; we should expect the crypto space to stall for a long time, longer than what we are used to. Many investors are too scared now to put new money into cryptos, ICOs are starting to fall in disgrace under many jurisdictions. There will be no easy cash in-cash out scheme as before December.
Those are my expectations, while the World starts to accommodate to this new technology that is disrupting many industries. On a personal note, I am bullish with the technology, this for sure will stay. Now, if you ask me as an investor, am I bullish on every coin I own? Hell no!
So, guys take care of your wallets, try to have 2FA always in place, your private keys are yours, so keep them safe. And, most of all, Keep only the minimum at exchanges! I know is a pain to make transfer every time you want to trade, but better that than giving your money away to Hackers, Francesco's or who knows what other thread will come next.
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Nice Report, Bro! I see more possible downside, immediately and for the foreseeable future as long as we are in a down market. Due to Steemit folks powering down, maybe. BUT THAT BEING SAID, it could be "the Bottom" at any moment. We are close to time to buy, but no one knows for sure. Best Bet:
it's TIME TO "DCA"
Dollar Cost Averaging. Buy what you can each week and when this dip is OVER, you will have more STEEM for your Fiat than those trying to "Time the Exact Bottom" in most cases, and CERTAINLY more than any Haejin Fanatics :P
You mentioned the Principles of DCA, I just put the name on it. ;)
Good post as usual. Man, im so tired of SEC bs
SEC is just the tip of the iceberg, regulators are going hard after cryptos. In a way we can see that we are not yet ready for a total anarchy, too many scammers, hackers and unscrupulous business men are lurking for our well-earned money.
I coach some small investors on my free time and I can tell you, if it wasn't for well intended people they are corpses for vultures, naive and dreaming with lambos, explosive combination. That is why I still believe somehow this is a good thing for the crypto space.
I wish I was before in this market as an investor and not only as a student, I lost most of the bull run.
Thanks a lot for your comment and upvote!!
this also shall pass...
this is good for traders, not so much for hodlers with fud
Indeed, I am off the day trading but of course was a great opportunity to buy some more. I did that with the recent XRP rumor, sold half position at 1 knowing that it will fall down later.
Totally agree with you. Downside not yet done. Still hodling. Regulation noise making the market nervous, but im welcoming new rules for a level playing field.
Good post. Bests
Thanks Fede, indeed, looks like it has more room to go down. I also agree that we need for the moment some regulation, maybe when people get well educated on the matter they could take more risky steps.
Very true. And once regulation is established, then institutional money will pour in like a tsunami. Hodl
What can we say about this. One of the leading exchange was exposed. It will not be good for Binance nor for the complete cryptoworld!
It shows us that how much we try to protect our assets, they will never be 100% safe.
If the Binance news hits the mainstream media it will be a big blow for the community!
My luck I did try to buy the dip yesterday but as always it was followed by a deeper one.
But it looks we did hit rock bottom.
Hey my friend, thanks for stopping by. I updated on the Binance part, looks like they counter what happened by covering the losses, apparently the clients who lost their funds will recover what they had before the exploit!
I sold xrp at 1 but I am not sure if I will buy again, I may buy more Steem actually.
Binance will never say they were hacked
Thanks for your comment Luiggih, I agree, is a matter of PR for most exchanges. Still, I find Binance one of the most honest ones out there, just compare it to the BitGrail scandal. They make statements and even say they will recover the losses for the clients.
At the end is on their field. A good thing about the SEC involvement is that Exchanges will be shi**ing on their pants fearing sanctions and fines, if not, even closure. This will give investors a lot more confidence and may bring a new jump in prices for 2018.
Off-topic, liked your profile and the concept of being a pro commentator. I like to post more for the comments that the upvotes, even more when we rely on self-promoting.