SEC and Bitcoin Cash Wars take their toll on the market
In one week the overall market cap for cryptocurrencies has dropped from $210 billion to under $150 billion, taking it to its lowest levels for the year as SEC increases its actions against ICO projects and Bitcoin Cash spends millions in its hashrate wars.
As the two opposing developer camps involved in Bitcoin Cash, Bitcoin Cash ABC (Roger Ver) and Bitcoin Cash SV (Craig Wright - the man who claims to be the creator of Bitcoin - Satoshi Nakamoto) failed to reach agreement, the currency forked into two different chains or versions thus sparking a hash war. As each side moved more and more resources onto mining their version of Bitcoin Cash to make it the dominant version, major resources were redirected from mining the original Bitcoin and huge amounts for money spent leasing resources for unprofitable mining operations. Bitcoin ABC seems to have come out the winner with many exchanges now listing Bitcoin Cash as the ABC version and starting a new ticker for Bitcoin SV, but all parties are essentially losers including the crypto market as investor confidence gets badly shaken. There is talk from the Bitcoin SV camp that seems to indicate they are getting ready to admit defeat and become a new minor currency, which has replaced the talk of a long war of attrition until the financial death of one or the other.
The SEC has recently targeted two American based ICO projects, Paragon and Airfox, forcing them to register as securities and pay back the investors from the ICO fundraising. The actions were seen as important as they now form a template that the SEC can apply to many other previous ICOs. Important...
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