With investors losing their night’s sleep over the Bitcoin volatility, people have totally forgotten about its contender Ethereum. But in this unpredictable summer for cryptocurrencies, Ethereum has also suffered from a large series of setbacks. Since the month beginning, the price of Ethereum has dropped by forty percent which is a direct cause of negative publicity and anti-cryptocurrency drive heralded by financial regulators of countries across the globe.
With the Chinese regulators announcing a ban on ICO, the value of cryptocurrencies have been on a continuous downswing. This move ushered in by the country’s central bank is primarily targeted at clipping the wings of the widely growing cryptocurreny market which is posing considerable threat to China’s economic controls and tight currency. This ban also aims to bring down the money laundering activities associated with this cryptocurrency powered funding path taken up mostly by start-ups.
China was always known to be one of the most cryptocurrency favoured nations. Thus its recent change in temperament did come as a shock to many. BTCC, one of the largest cryptocurrency exchange platform of China made the announcement of ceasing its home operations in the aftermath of this anti-ICO agenda taken up by the Chinese law enforcers.
ViaBTC, another Bitcoin Exchange in China, also confirmed to close it’s operations by 30 September.
Financial Services Commission of South Korea also announced that it does not consider the cryptocurrencies to hold any considerable value. This decision was the ultimate fruit of a long drawn meeting amongst South Korean financial agencies which also gave an illegal tag to the ICO fundraising mechanism.
Ethereum was also on the receiving end of much negative publicity after the ICO investors were issued a stern warning by a Financial Conduct Authority representative of United Kingdom who stated that ICO’s are an extremely risky affair primarily because of of its lack of proper regulation. Vitalik Buterin, the Ethereum founder also feels that the market needs to “cool down” to break the ICO bubble and bring home stability.
Three months back, Ethereum was going strong and was posing significant threat to Bitcoin in gaining the numero uno position in cryptocurrency world both in terms of popularity and market share. However in spite of current state of events, the strong technical backing of the Ethereum platform will surely usher in growth dynamics in days to come.
At the time of publishing this article, Ethereum was priced at $280.11 with a market capi of $26,522,958,462.
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