HODLer Alert! SEC "wins," ICOs "lose," and Market Crashes ...
The Securities and Exchange Commission (SEC) of the United States has announced the settlement of charges against two companies selling initial coin offerings (ICO). The response of this new asset class?
A major market collapse. Coming on the heels of the "dust up" created by the failure of the various "camps" to successfully collaborate and reach consensus on their latest efforts to improve the bitcoin cash (BCH) blockchain.
Combined with all of the other relative market weakness of the last several weeks, it was a significant one-two punch that sent the cryptosphere reeling.
As I have written elsewhere "in here," I am first and foremost an investor in this new asset class and everything else I do comes second to that. Put simply, if I had not first been an investor in the Steem blockchain, I would never have made the attempt to establish an "online presence." Don't have the time. Not interested ...
So ... As much for it representing a "journal entry" for my own reference in the future, as it is a Steem blockchain post, this morning I want to write down my thoughts and reactions to this "heavy" news heading into our great American holiday - Thanksgiving.
SEC Background and the News
So, who and / or what is the SEC?
"The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation."
"As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever."
A lot of detail follows these introductory statements, which my readers may wish to check out for themselves. Fundamentally, they claim then to exist for the "protection" of the American people.
How did they just "protect" us?
"The Securities and Exchange Commission today announced settled charges against two companies that sold digital tokens in initial coin offerings (ICOs). These are the Commission’s first cases imposing civil penalties solely for ICO securities offering registration violations. Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the Commission, and pay penalties."
Sounds painful!
Much has been written of the whole initial coin offering market and what percentage of them are legitimate and what percentage of them are outright scams. We'll all have our own opinion on which of these two categories our personal investments into any of them fall.
The Market Response
While this news release mentions two ICOs, there are many other ICOs that are in "the cross-hairs" of the SEC. And this latest news clearly has them in "panic mode," as they scramble to raise the funds needed to either "pay up" or to defend themselves in court.
Given this new asset class is a market that I would classify as in its relative "infancy," I doubt there are very many ICOs that have the "deep pockets" to mount much of a challenge. I do not know any details on this. It is just my presumption. I welcome any input on this in the comments below.
Overall, the marketplace can be cold-heartedly and ruthlessly efficient. In our current time in human history, our technology allows the market's "decisions" to be executed with amazing speed. We have just experienced that and I doubt there is anyone still invested who has not been negatively impacted.
How many of these new "digital assets" will survive this latest threat to their existence? Time will tell ...
Volatility of the Digital Asset Class
The challenge for any of us who have chosen to invest our hard-earned money into this new asset class is the remarkable volatility of it. It is simply beyond dispute. And this is not new, but has been the case all along, since it was created in 2009 ...
Many are simply not prepared to handle it. Particularly those who have not invested wisely and ended up getting badly burned.
Setting my own feelings (yes, I have one or two ... 😉) aside, my steely resolve to “stay the course” has two primary components:
- This volatility is directly related to an asset class in its ”infancy.” It has a ways to go in proving itself. While a definite problem, it can also be viewed (as I try to do) as an opportunity. Both the potential risk and reward are high. As it matures, this volatility will decrease. But so will the “reward” …
- A lot of very smart people have put a great deal of time and money into realizing the full potential of this new asset class. While the ”masses” will run off in fear and absorb substantial losses, these people will stay the course and ultimately prevail through all of the inevitable challenges of “bringing it to life.”
Wishful thinking? Foolishly naive? Anything else negative? Again, we'll all have our own opinions ...
Fundamentals Reinforced
For this "old warhorse," this most recent experience has provided an opportunity to reexamine and reinforce in my mind the fundamentals of my original decision.
I wasn't going to invest any more money than I can reasonably survive going down to absolute zero. And I mean exactly that. Absolutely worthless!
I was going to invest in a number of these "digital assets," to spread the risk around as much as possible. Why? Well, among other things, I believe that some of these digital assets really will ultimately become absolutely worthless. And some will be valuable. And that I am not smart enough to know which is which ...
I would buy into the "dips" as opportunities to cost average down the price of any of them into which I have invested.
Overall, the concept of what blockchain technology represents has true value. To support investing into it in the first place. But clear, that as an entirely new creation, it will take time to "prove out" that value, with many ups and downs along the way.
The last point is life. No matter what anyone tells you, there is no "something for nothing." Never has been. Never will be. It takes work to persevere through the tough challenges and faith that it is worth doing, for the vision of what one knows can be, if they don't give up.
The toughest challenge is time. If there is any merit at all in the thought this asset class has genuine value, how long will it take to "prove out?" Whatever the answer, we can all rest assured market corrections like this one will set the timetable back ...
I genuinely hope, dear reader, in the face of a market correction like this one, you have your own very clearly defined answer to the question of why you are involved in an asset class like this one.
Closing
So ... At the end of all this, where does @roleerob stand? I remain fully invested and am even buying some "when there is blood in the streets." I have always been a long-term oriented investor, not a short-term speculator. Good thing. If not, I might be looking for a high place to jump off of right about now ...
I have elected to write all of this down on my first day off work in a while. So ... Obvious question to me is where does the Steem blockchain fall in light of this recent SEC ruling? I personally don't know. What I do know is STEEM is now worth about 50% of what it was a few short days ago ...
Does anyone know anything specific about STEEM and its standing before the SEC? I welcome input on this or any other feedback you may be inspired to provide.
Until "next time," all the best to you for a better tomorrow, as we all work together to build our Steem Community! 👍 😊
Respectfully, fellow Steemian @ roleerob
Posted using SteemPeak and “immutably enshrined in the blockchain” on Wednesday, 21 November 2018!
P.S. Need to write down the usual caveats in this post that I am not offering professional investment advice. I am not professionally trained nor do I possess any other credentials that would classify me as an investment adviser. This post just represents one man's opinion. You are free to do with it what you will ...
Interested to read more of my HODLer "series"? Great! Here you go:
- HODLers of the World Unite!
- HODLer Alert! Chicago Board Options Exchange (CBOE) and Bitcoin
- HODLer Alert! Goldman Sachs announces Megabucks Investment into the Cryptosphere!!
- HODLer Alert! Cryptosphere "invades" our Backyard!!
Well said. We need to stick with it!
Thanks for stopping by @ironshield! Yes, somewhere between "misery loves company" and "great minds think alike," we need to stick with it, as well as stick together. 😊
Intrigued by your account name, I took a few minutes to check out your account and very briefly visit your website. I am now following you, as a result of the impression made.
Always interesting to me what catches the eye of others, so thought you might like to know. If your time permits, I’d be interested, in turn, to know what brought you to my post, as I do not recall seeing your name before today.
All the best to you and yours @ironshield, for a special celebration of our great American holiday – Thanksgiving! What have much for which to be thankful …
Stick-with-it-ness is important, more than HODL, which implies we are holding on to something we want to let go of. Now is the time to increase our enthusiasm, rather than grouse.
I've been posting fairly regularly on Steemit for about 18 months, STEEM was at $1.68 at the time and I (in my ignorance) figured it was only up from there. Everyone was talking about the moon and I (in my ignorance) believed them. I bought some more when STEEM was around $0.80 figuring this was a rare opportunity for this coin (destined to be $10 and up) and have ridden the rollercoaster ever since. This is the lowest I've seen so far, but I'm not discouraged - I see it as an opportunity to grow the investment while it's low and be patient as it grows in the future.
The only sad things are the discouraging sentiment of some fellow Steemians, who are basically advocating jumping ship... but why do that when the ship is on it's way to the moon? :-)
We have so much to be thankful for! We will be enjoying a feast together with family tomorrow and recount all the things to be thankful for. I have a secondary account @gratefuleveryday which I was using to remind myself of all the things to be grateful for, I think Thanksgiving is a perfect time to rekindle the daily #gratefulvibes.
Hmm, how I found this post? I'm not sure... maybe discord? Maybe a resteem? Maybe it showed up on the "new" page after I posted and the title grabbed me? Not sure, but probably one of those scenarios.
Good morning (here) @ironshield. I appreciate the additional value you have added to my post with your reply here.
Absolutely, we must have a long-term perspective. And continue faithfully laboring away ...
Yes we do! And we all struggle with our human nature with its tendencies to do exactly the opposite ...
Thank you for introducing me to the #gratefulvibes channel @ironshield. Never heard of it before now. But, at a quick glance, can see a lot of great content linked to it. That only leaves me with my usual dilemma - not enough hours in the day. And, with that dilemma where best to invest the finite time that I do have.
All the best to you and your family. I hope you've enjoyed a great celebration of Thanksgiving with the various illness challenges you've faced!
Psalm 118:24
Hebrews 10:23-25
P.S. Before heading on into my day "out there," wanted to let you know I spent a little more time "in here," looking over some of the posts in the #gratefulvibes channel. Several items reminded me of a post I wrote early on, in my Steem "journey" - Observations: Gratitude and the Simple Things.
Thanks again @ironshield, for bringing it to my attention!
Great summary and disciplined approach amid all of this noise. I actually like the fact that markets have finally moved as the extended period of treading above water probably had people waiting to see the next move, I know I was. While the direction I would have wanted, it now provides the opportunity to consider moves going forward. I accelerated my purchases in Steem and even SBD (for an experiment) but I also got back into the market and bought some other cryptocurrencies that I think can weather the storm as they have in the past given the fact that blockchain is not going anywhere.
As always, thanks for the great input @newageinv ...
You and I are on the same page! 👍
With you, I would’ve wished for something a little more positive to end the year, but … Not happening unless something miraculous intervenes between now and year’s end. I elected not to put the other “downer” news about the ICE delaying their BAAKT implementation …
Overall, like you, I believe there is a future in this asset class, so taking advantage of the lower prices. I can afford to hold long term. Time will tell how bright that is …
Hopefully we can all set this aside, to the best of our ability, and enjoy our great American holiday – Thanksgiving!! 😊
Great summary of current developments, thanks for that @roleerob 😃 And you're absolutely right; all market-movements aside, there's nothing fundamentally changed about the potential and use-cases for public decentralized blockchains. Don't panic, just hodl 😋
Yep, @zyx066, we are in agreement!
For most, it is a question of whether they are willing to "hang in," for the period of time it is likely going to take for this potential to be fully realized. Personally, I expect it to take years, not months. And certainly not weeks ...
That said, I would be very happy to be proven wrong!😉
All the best to you and yours, for a wonderful celebration of our great American holiday - Thanksgiving!
Hola @roleerob! Gusto a saludarte, esperando que el steem se recupere, cariños y besos.
Yes @celinavisaez, right with you on the hope for the future. There is no short-term "fix" here in sight. We have to have faith and believe we have made a good investment for the long-term ...
Hope all is well with you and yours! 😊
Howdy sir roleerob! Oh so THAT'S what caused the price drop, I didn't even know that so thank you! Generally I don't pay attention to the prices but everyone talking about it the last week has made me aware at least. Very well post and I agree with your opinion and attitude!
Good evening sir @janton. Good to see you again!
Yep, the market is absolutely getting pounded. As I say here, good thing I am a long-term oriented person or I might be really sad about now ... BUT, I'm not ... 😉
Just have to "settle in" and realize there is very unlikely to be a "quick turnaround," as this much of a setback is going to take some time to recover.
Thanks for getting back to me so fast sir roleerob! Well sir, do you think it could keep drifting lower for awhile? I was thinking about trying to buy a little steem but wondering if I should wait for it to go lower?
Do you have alot invested?
If I had a crystal ball @janton, I'd be wealthy and maybe laying on a beach somwhere and not even be "in here" ... 😉 You'll have to decide yourself. What we both know is this asset class is ridiculously volatile and not for the "faint of heart." If you have much invested.
So, I have no idea what is going to happen, other than to say I do not believe, as stated in this post, that cryptos are all worthless and all my investments will go to absolute zero. I do believe, before it is all over, some however will. Go to absolute zero ...
For me, my security does not lie in this asset class or my investments. But elsewhere.
yes sir I understand and agree. Most of the cryptos deserve to go to zero so it would be nice if those got culled out soon, it would be nice to get the weak ones out of the way so we had a better idea of which ones were going to last long term. You keep referring to yourself as "old man" and so forth, are you close to retirement?
I got forced into semi retirement but I'm looking around for something now and my wife and I have a dream for a new business. We built a successful real estate firm in Northern Ohio but the stress was killing her so we got out of it.
Yes, @janton, I am retiring from my current employer on Jan. 18th. But … I am not through working. I will take a break and go on a trip that I may write a post about soon. Once back we’ll see how the Lord leads in my future from there.
Wise to get away from overly stressful situations. That is why I am leaving where I am currently employed. I hope you and your wife are successful in establishing your new venture!
howdy again sir roleerob! Well do you have many years there at your company and have a retirement plan I assume? I'm looking forward to that post!
Up before 🌄 (here) @janton and catching up a bit … My reflections on this upcoming trip, referenced earlier, has now been posted - Reflections: My "Road to Recovery" Trip.
Can’t wait to get “out on the road!”
Spot on. I'm riding this thing out right along with ya!
Posted using Partiko Android
Glad you are "on board" @abhaya504! We'll all need to be geared for a long haul, though, as I think it will take years for the potential of this new asset class to begin to be fully realized. Love to be proven wrong ...
In the meantime, we're "pioneers" and will just have to take "the good, the bad, and the ugly" as it comes! 😉 👍
Absolutely. There's value here. Monetary rewards are secondary.
Posted using Partiko Android
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