Chart for ETH/USD (1W)
Ethereum (ETH) had been under a lot of heat from regulatory bodies over its status as a noncompliant security. While this debate may not have much weight in the case of other cryptocurrencies, it holds a lot of significance in the case of Ethereum (ETH) owing to a sale of 60 million ether tokens by The Ethereum Foundation in July 2014. This sale raised 31,000 Bitcoin (BTC) valued at around $18 million. As the sale can be deemed a speculative launch that could lead to an increase in the value of Ethereum (ETH), this deal can be classified as an instance of security offering.
Just recently, Ethereum (ETH) was dealing with problems at home, rising from disagreements among developers over EIP999 which also created rumors of a hard fork in case a deadlock is reached with Parity Tech, one of the contributing software to the Ethereum (ETH) blockchain. Disagreements over how the operations of the blockchain are handled have also been on the rise with many developers complaining about too much centralization and constant tampering with the code.
ERC20 tokens built on Ethereum (ETH) are increasingly looking for exits to launch their own blockchain to avoid being dragged into problems with Ethereum (ETH). Regulatory bodies have recently taken more of a “do no harm” approach towards existing projects, but they are very critical of new ICOs held on Ethereum (ETH). A few months back, TRON (TRX) announced that it will no longer be using the Ethereum blockchain. EOS (EOS) has made a similar announcement. This goes on to show that most crypto projects currently view Ethereum (ETH) as toxic and are trying to distance themselves from the coin and its problems.
On the other hand, projects like Cardano (ADA), TRON (TRX) and EOS (EOS) have increasingly been building their capacity to host ICOs and encourage developers to build Dapps on their platforms. EOS (EOS) announced recently that it is distancing itself from Ethereum blockchain because it aims to become an Ethereum competitor. Most investors already see other crypto projects like EOS (EOS) as better alternatives which are more easily scalable and do not come with much problems. Ethereum Classic (ETC) is another coin which has strived hard to preserve the true vision of Ethereum and still receives a lot of respect from loyal Ethereum believers in immutability and transparency, despite Ethereum Classic (ETC)’s failure to project itself as a real Ethereum (ETH) competitor.
Chart for ETH/BTC (1W)
On the technical side, things look good, at least for now. As long as the market undergoes a trend reversal, Ethereum (ETH) does not face any serious threats as far as the price is concerned. However, the risks of legal troubles are now higher than ever. The last few months have seen an aggressive decline in the price of Ethereum (ETH). This could be the work of retail traders that panic sold into strong hands, but it could also be the work of whales trying to distance themselves from a toxic cryptocurrency. Ethereum (ETH) has a lot of tests ahead of it. While it does seem likely that it will continue to flourish and have a role in the cryptocurrency markets, it also seems likely that it may not be able to make similar gains as before in light of recent developments.
The post Is Ethereum (ETH) In Legal Trouble? appeared first on Crypto Daily™.
Source: CryptoDaily.co.uk
Original Post: Is Ethereum (ETH) In Legal Trouble?
