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t. Unsurprisingly, a lot of self-anointed crypto experts and media houses have been pronouncing Ethereum dead. One key reason for the current slump has been the broad selloff of ETH by a number of ICO projects. Another reason has been near-term scalability challenges that are not necessarily unique to the Ethereum blockchain.
The challenges ahead for Ethereum will weigh down on its price in the near term and if Ethereum fails to implement sustainable scaling solutions, the whole situation is going to aggravate further. However, investors would be wise to not throw in the towel on Ethereum just yet, especially given that it remains the leading smart contract platform and is supported by top-notch developer talent.
We have seen similar situations with Bitcoin multiple times in the past. According to 99bitcoins.com, Bitcoin has been declared dead 309 times since 2010, yet continues to bounce back.
“Prosecution by Securities” In a recent ruling in New York, U.S. District Judge Raymond Dearie allowed prosecutors to apply US securities law to a criminal case involving cryptocurrencies. The judge ruled in a first criminal prosecution of its kind, involving Brooklyn businessman Maksim Zaslavskiy. Zaslavskiy is charged with fraud for raising money via ICOs for tokens which he suggested was backed by real estate and diamonds but prosecutors claim otherwise.
“Lights, Camera, SEC” In another incident, the SEC doubled down on its stance of treating certain cryptocurrencies as securities by directly fining crypto hedge fund Crypto Asset Management and its founder, Timothy Enneking. The watchdog said that the firm had willfully not followed and tried to evade regulatory requirements by not registering with the regulators.
“I’ll Take That” In another instance of industrialization of mining operations at scale, Nevada based cryptocurrency mining and operations investment company Wuhan General Group (China) announced that it is in talks to acquire a 55,0000 sq. ft US Defense Department facility to further expand its mining operations. The company said that it intends to take advantage of the lower energy costs in the US.
“No Star(s) in Shanghai” According to Chinese news firm Sina News, Star Xu, the founder and currency CEO of OKex, the world’s largest cryptocurrency exchange by volume, was detained by Shanghai police while in transit. The arrest happened in relation to the WFEE coin – Star is a shareholder in the issuing entity of the coin, which has been accused of being a scam.
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