SEC Urges Investors to be More Careful with Cryptocurrencies

This week the website of the Securities and Exchange Commission (SEC) posted an article warning cryptocurrency investors about investing in cryptocurrency assets. The other day the head of the education and advocacy department of the SEC, Lori Schock, wrote an unofficial post addressed to average investors. The message begins with a situation that occurred in one of the homes for the elderly, where Laurie gave a lecture on investing. An elderly woman approached her and asked: “My children keep telling me I need to hurry up and invest in Bitcoin is it safe, have I already missed the boat?”

Even though not only elderly people, but also various businessmen wishing to invest millions into any cryptocurrency project, are interested in investment issues, Lori Schock says that she can not give instructions on investing into Bitcoin, or any other cryptocurrencies and projects, but only provides some advice on some issues that should be considered when deciding whether an investment is suitable for you or not.

Lori emphasizes that any investment into projects related to cryptocurrency is not subject to the SEC protection laws, and reinforces her warning by the statement of the SEC chairman Jay Clayton:

“You should understand if you lose money there is a real chance the SEC and other regulators won’t be able to help you recover your investment, even in cases of fraud”.

After that, Lori Shock also stated that investors do not conduct proper research before investing, and in most cases they trust advertising and hype around the project which they want to invest into. In particular, now it has become popular to show famous actors investing into cryptocurrency, because most of their fans believe such advertising unconditionally. An example is the recent PR-campaign of an ICO, which hired actor Steven Seagal to promote their project. 

To sum up Lori Schock says:

“Cryptocurrencies may be today’s shiny, new opportunity. Proceed with caution, do your research, evaluate your financial goals and most importantly, do not flip a coin when you’re making investment decisions”.

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New Trend: Why Companies Replacing the Term “Blockchain” to “DLT”

Due to harmful hype to innovative chain of transaction blocks, some companies use “DLT” instead of “Blockchain”, which stands for Distributed Ledger Technology.

The term replacing begins with that some organisations, in their advertising and informational campaigns, decided to change the word “Blockchain” to “DLT”. Such a move connected with the hype about the blockchain technology. Therefore the companies, in order to take some of the negative from them,went on that kind of cunning. In this regard, an independent analytical company Forrester Research has made their own investigation.

Company analytics point out, that “Blockchain” is a trend-word of crypto industry, which many crypto projects abused. The word is used even when the technology isn’t used in the product. The usage of “Blockchain” for the hype invalidate the technology itself.  Since, the blockchain in general is associated with cryptocurrency, when the company which are not related to the world of cryptocurrency, decided to go away from the naming technology and started to use the word “DLT” , in order not to associate their activity with the digital money.

Meanwhile, the word “Blockchain” overtakes the word “Cryptocurrency” by frequency of requests in the world search, according to the Google Trends.

Source:Google Trends

We want to remind you:

The Number of Searches for “Bitcoin” in Google Has Skyrocketed

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800% Increase In Money Laundering Cases Connected To The Cryptocurrency

According to the report published by the news media outlet “The Japan Times”, the National Police Agency in Japan registered about 6000 cases of money laundering connected to the cryptocurrency industry. The figures were taken from the research in the period from January to October 2018.

The amount of cases has raised showing an 800% increase in compare to the period from April to December 2017.

An NPA official commented on this situation:

“We have seen some large-scale cryptocurrency thefts, and operators are believed to be scrutinizing transactions more rigorously.”

In the report, NPA also emphasized on the vulnerabilities of the cryptocurrency transactions. Anonymous transactions can be transferred to overseas, due to different cryptocurrency regulations in various countries, it is hard to track the culprit.

We remind you

How to Determine Whether a Cryptocurrency Is Reliable and Invest Your Money Properly?

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Lightning Network of Bitcoin Blew Up: A 1600% Increase Since Last February

The BTC Lightning Network which was created to fight with the issue of Bitcoin scalability is developing at a huge pace. The story began last February. Back then, the network only had 1 thousand channels, worth 4 BTC per channel.

The network started growing. In August it already had 11 thousand channels with a price of 97 BTC per channel. We remind you:

The Number of Channels in the Bitcoin Lightning Network Exceeded 11 Thousand

And then Bitcoin Cash hardforked, and things went wild. The Lightning Network literally blew up. At the time of writing, the number of its channels equals to 16677. This means an increase by 1600% since the February of 2018.

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SEC Will Release the Decision on Bitcoin ETF in February

One could probably create a movie out of the notorious Bitcoin ETFs and their unfortunate fate. They were rejected, returned for further review, rejected again, criticized, once again rejected, but not on the official level. The final decision was supposed to see the world this fall, however, it never happened.

Now, the Commission is postponing the date again. The official notice published by the SEC states:

The Commission designates February 27, 2019, as the date by which the Commission shall either approve or disapprove the proposed rule change.”

Given the fact, that the SEC representatives themselves give rather broad hints that BTC ETFs are not likely to be approved, another delay seems a strange way to proceed, but the crypto community can do nothing but wait till February.

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Cryptocurrency Prices Today, December 7: BTC Dropped by 12% in a Day, Cryptocurrency Collapsed

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) lost a record 12.4% over the past 24 hours. The price at the time of writing is $3377 per coin.

Following BTC, cryptocurrencies fell in price:

Bitcoin Cash lost 19.11% over the past 24 hours and costs $110 per coin;

Ripple fell by 12.3% and has a rate of $0.30;

EOS minus 25.04%, and its price is $1.70;

Litecoin decreased by 14.9%, and its cost is $25;

Cardano lost 17.72%, and its value is $0.028;

Stellar became cheaper by 17.42% and costs $0.10;

IOTA dropped by 17.53%, and its value is now $0.24;

Dash fell by 21.65%, and its price is $61;

Monero lost 2.18% and costs $45.

Over the past 24 hours, Ethereum dropped by 17.63% and continues to decline. The coin rate crashed down to $84, according to Coin 360.

The total market capitalization fell to $107 billion. Bitcoin accounts for 55.2% of the total volume. In monetary terms, it is $59 billion.

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Vinny Lingham is Clear About Bitcoin: “I don’t think we see $20k for a while”

Significant part of crypto community, still cannot recover from the fall of the cryptocurrency, the rate of which is still in a red zone. According to the CoinMarketCap, Bitcoin, at the moment of writing the article, is set on at $3 747 per coin and still falling.

But some representatives of crypto community have their own view about the situation on the market and predict their own price of Bitcoin.

Vinny Lingham, an Internet entrepreneur, Co-founder and CEO of Civic, has answered to a few question of The Coin Shark, to clarify the situation on the market:

Hello, Vinny. What do you think, will Bitcoin be able to overcome the $20 thousand mark next year?

I took a $20k bet with Ronnie Moas in Vegas, last month. He predicted $28k by EOY 2019. I disagreed. I don’t think we see $20k for a while, at the very least 2020, but possibly even 2021.

In your opinion, what is the problem with cryptocurrency at the moment?

There is too much hype, and not enough substance, as well as too much focus on the technology and not enough focus on the business or consumer value add.

Can Ethereum become the leader in 2019?

It is possible, but unlikely unless they can fix the scaling issues and deal with the lack of consensus within their community.

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