Reptiles In Crypto
Last week I felt like a reptile basking in the sun's rays to warm up for the next activity. Only the activities that followed such a warm-up session were completely different than those of the SEC. They have once again lashed out like a snake that strikes unexpectedly. The next lawsuit is announced again. Get ready folks! This time, Consensys is the accused victim. Consensys is the company behind MetaMask. They have been charged as an unregistered broker and for selling unregistered securities. The indictment specifically targets the swap and staking services offered through MetaMask. And this doesn't seem to be all that lies ahead. The SEC snake appears to want to strike even more often and inject the poison a little deeper into the crypto industry, because also terra (LUNA), [polygon (MATIC)], chiliz (CHZ), decentraland (MANA) and the sandbox (SAND ) are listed as securities in the indictment. We will have to wait and see how this will develop again, but you would still wish that this SEC snake would be captured and pushed back into its dark corner.
Vitalik Calls Current Regulation A Disaster
In the meantime, Vitalik Buterin also seems aware of this and has sounded the alarm. He puts it very clearly; “Current crypto regulation is a disaster for the industry.” He also indicates where the problem lies in America. If you're doing something pointless or asking people for money in exchange for vague references to potential returns, then you're free to go about your business. But if you try to give your customers a clear story about where the returns come from and make promises about their rights, then you are screwed because you are a 'security'. This 'regulation' leads to an abundance of useless meme-coins, which is reflected. The big problem with this is that most meme coins are purely driven by hype and social media. 99.9% of this group has no long-term vision and no use at all. They are useless coins that are mainly intended to provide the founder with money. And many people are more than happy to jump on board. To make this even clearer, many meme-coins are prone to scams and market manipulation created by anonymous developers, making their reliability difficult to verify. The rug pull is certainly not unknown in this group. And yes, of course, I am also aware that you can speculate with meme coins, but paying attention is certainly not an unnecessary luxury. Ensuring that you do not become a victim of rug pulls or pump-and-dump scenarios remains very important if you do not want to lose your money.
BTC approaching "oversold" area
In addition to all this news, you could almost fail to notice that Bitcoin is approaching the area where it is considered "oversold". Bitcoin's RSI is currently around 26, which is approaching 30. At 30, something is considered "oversold" and we usually see the upward price movement follow. If this continues, Bitcoin may probably prepare for a rebound. It is not yet possible to say whether this will apply to the entire market, because Bitcoin dominance is still high. Now I am convinced that eventually, the entire market will turn a lot greener again, but it may take a little longer for most tokens. Yet this in itself is positive news because it at least means that it is coming again. However, the big question for us here at Hive remains... will Hive participate? The 22 cents we see now is not exactly something to be happy about.