StockTalk (6.8): Crypto Crackdown: Binance and Coinbase Under Fire?
Recently, the SEC has reinforced regulations on cryptocurrency trading platforms, charging the world's largest cryptocurrency exchange Binance and the largest US cryptocurrency exchange Coinbase over violations of local securities regulations.
As news spread of Binance and Coinbase being sued by the SEC, data showed that about $780 million (approximately SGD $1.05 billion) had flowed out of Binance within 24 hours. Meanwhile, Coinbase, which is listed on the NASDAQ stock exchange, saw its share price drop by over 20% upon opening on Tuesday. However, over the past three days, Bitcoin and Ether have recovered after experiencing some initial dips. As of Wednesday evening (June 7), Bitcoin was trading at $26,573 USD, rising by 3.3% in the past 24 hours, while Ether was trading at $1,858 USD, increasing by 2.2% in the same period. Despite governments around the world increasing their efforts to regulate the crypto market, some analysts believe that cryptocurrency investors are becoming more adaptable to the changing circumstances.
Do you think the SEC's lawsuit against Binance and Coinbase will have a long-term impact on the cryptocurrency market? How do you see the increasing regulatory efforts by governments affecting the future of cryptocurrency investments? Are you planning to adjust your investment strategy in light of recent developments in the crypto market?
Join us and share your thoughts on today's topic Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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ZnWC : I covered investment in cryptocurrency about 4 months ago when crypto exchange FTX collapsed. They're other exchanges collapsed such as Celsius, BlockFi and Hodlnaut. Investors didn't lose faith in crypto but the exchangers which is not transparent in term of financial, returns and security.
There's no standard system on how to audit it's assets, no transparency in what they're investing and lack ability to secure the crypto. To put it simply - such exchangers are not regulated. Hence we see Binance and Coinbase bring sued by SEC.
Some may argue that decentralization is essential in cryptocurrency. Unfortunately defi is not fully developed. They're just too many loop holes to be exploited. Until the above are resolved, cryptocurrency investment will not go far. Having said that Blockchain tech is a different story - it'll disrupt the way to do things in the future. I may invest in Blockchain related stocks.
Related article:
I kept BTC and ETH under my pillow
snoopy123 : normally, your post got rewards.. this one dont have?? [Rewards awaiting] 8 points for all mooers who participated in the poll below.88 points for mooers who share their insightful ideas by commenting down.
Moomoo SGOP snoopy123: Thank you for your reminder! We forgot to include rewards for today's article. But don't worry, the rewards for this day will be distributed as usual
sociable Dingo_8604 : I first traded crypto early 2021 during the meme hype and witnessed several flew to their peak and plummeted like dead flies soon after.
Problem about crypto is that anyone can create a token within a few hours and market it like a gem. People are attracted to the hype and fomo in crazily even if the token or coin does not have any white paper published or utility behind it. Crypto market acts like stock market except it is more volatile and random.
I believe regulation will tame crypto and bring about more education and assurance to those who invests in it. Investment takes time. Nowadays the concept is making quick money so many people do get burned terribly by crypto.