The U.S. Securities and Exchange Commission (SEC) has taken action against Justin Sun, the founder of Tron, and the Tron Foundation, issuing charges for offering unregistered securities and market manipulation. Additionally, a group of influencers have been charged by the organization for promoting tron without disclosing that they were being compensated for their endorsements.
Tron Founder Justin Sun Charged for Selling Unregistered Securities and Market Manipulation
The U.S. SEC announced today a series of charges against Tron founder Justin Sun, and the Tron Foundation, declaring that the foundation offered TRX as an unregistered security, violating securities laws. Bittorrent token (BTT), which was launched after Sun took over Bittorrent Inc. in 2018, was also mentioned as being part of these offerings. In the filed complaint, the SEC states:
All TRX purchasers, including those who tendered value for TRX other than cash or crypto assets, invested in a common enterprise alongside Sun and the Tron Foundation, who at all times retained significant TRX holdings.
The statement makes similar allegations regarding BTT, stating it “was offered and sold as a security, specifically as an investment contract.”
The SEC also declares that Justin Sun orchestrated a scheme to manipulate the price of tron (TRX) on crypto exchanges using different accounts involved in daily wash trading activities, tasking part of his team in moving significant amounts of TRX through different exchanges. One of the accounts involved, according to the SEC complaint, belonged to Sun’s father.
Through this scheme, between 4.5 million and 7.4 million TRX were allegedly wash traded daily, in more than 600,000 operations.
Celebrities Also Charged for Illegal Promotion of Tron and Bittorrent Token
As part of the action of the U.S. SEC, a series of influencers and celebrities were also charged for promoting these securities without disclosing they were being paid to do so. The SEC claims that Sun indirectly instructed these celebrities to not disclose they were being part of a campaign, using employees as messengers.
Among the celebrities that were included in the lawsuit are Lindsay Lohan, Jake Paul, DeAndre Cortez Way (AKA Soulja Boy), Austin Mahone, Michele Mason (AKA Kendra Lust), Miles Parks McCollum (AKA Lil Yachty), Shaffer Smith (AKA Ne-Yo), and Aliaune Thiam (AKA Akon). All of them, except for Cortez Way and Mahone, have already settled with the regulator, paying more than $400,000 in “disgorgement, interest, and penalties.”
What do you think about the legal actions that the U.S. SEC is exerting against Justin sun and the Tron Foundation? Tell us what you think in the comments section below.
Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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Ether’s (ETH) price reached $1,400 on March 10, which proved to be a bargain as the cryptocurrency rallied 27.1% until March 21. However, the three reasons that supported the price gain, including correlation with tech stocks, its increasing total value locked and its deflationary token economics, all suggest that the path to $2,000 is set in stone.
There are numerous explanations for Ether’s 19.4% decline over the past six months. Ethereum’s Shanghai hard fork upgrade was delayed from March to early April and after Shanghai, Ethereum’s roadmap includes the “Surge” “Verge,” “Purge,” and “Splurge” updates. In reality, the longer these intermediate steps to achieve scalability take, the greater the likelihood that competing networks will demonstrate efficacy and possibly establish a competitive advantage.
Another potentially concerning issue on the minds of investors is the real chance of price impact when validators are finally able to unlock their 32 ETH deposits following the completion of the Shapella hard fork. While it is impossible to predict how many of the 16 million ETH currently staked on the Beacon Chain will be sold on the market. There is a compelling argument in favor of the transition to liquid staking platforms, as they can use liquid staking derivatives on other decentralized finance networks without sacrificing their staking yield.
Traders could construct a narrative based on regulatory uncertainty, especially after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s September 2022 statement that proof-of-stake cryptocurrencies could be subject to securities laws. In February 2023, the SEC reached an agreement compelling the cryptocurrency exchange Kraken to cease offering crypto staking services to U.S.-based clients, and the exchange also paid $30 million in disgorgement.
Correlation versus application-focused tech companies
To understand why Ether gained 15% in less than three days after briefly trading below $1,400 on March 10, traders must switch from a price-based analysis to a market capitalization comparison. On March 10, Ethereum’s market cap closed at $175 billion.
Oracle, SAP, and Salesforce are similar to Ethereum in that their software enables users to access shared computing resources. This is in contrast to chipmakers Nvidia and TSMC, infrastructure providers Microsoft and Oracle, and technology companies Apple and Cisco that all heavily rely on equipment.
ETH vs. Oracle (ORCL), SAP (SAP), Salesforce (CRM). Source: TradingView
The market capitalizations of Oracle, Salesforce and SAP are comparable to Ether’s at $233 billion, $188 billion and $149 billion, respectively. Ultimately, centralized and decentralized solutions permit businesses to integrate their proprietary software so that all third parties and relevant departments can consult, process, share and store data.
Considering the past six months of data, Ether’s price has performed similarly to those companies. The drop below $1,400 on March 10 was illogical if the correlation between application-focused tech stocks and the price of Ether remains valid.
ETH’s total value locked sticks at $30 billion
The total value locked (TVL) of the Ethereum network was $24 billion on November 24, 2022, and increased by 30% to $30 billion by March 21, 2023. Therefore, if no other factors influence the price, one could anticipate a 30% price increase during that six-month period. Except, that was not the case on March 10, when Ether traded at $1,400, representing a mere 8% increase from six months prior and indicating a disconnect between the value deposited in the network’s smart contracts and the ETH price.
This 22% difference between the 30% increase in TVL and the 8% increase in ETH price indicated that Ether’s true value should have been near $1,700, a level that was reached three days later on March 13, 2023. This simple model excludes a number of variables that influence supply and demand and the resulting price level, but it does provide an indication based on historical data.
On November 10, 2021, the price of Ether was $4,869, a record high for the cryptocurrency. However, a great deal has changed since then, including the burning of 3,016,607 ETH via Ethereum Improvement Proposal 1559. This equates to an additional $5.4 billion in capitalization that would have otherwise been created, thereby adding to the supply side and restraining price appreciation.
Currently, market leader Bitcoin (BTC) is trading down 59% from its $69,000 all-time high. That does not necessarily mean Ether should reduce the gap versus Bitcoin, but it shows how discounted ETH currently stands at $1,780. The deflationary standard paves the way for Ether’s perception as a scarce digital asset, which is particularly promising during inflationary periods in the global economy.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Powell on rates: “‘May’ and ‘some’ instead of ‘ongoing’”
Data from Cointelegraph Markets Pro and TradingView showed sharp moves both up and down for BTC/USD as the Fed hiked by an anticipated 25 basis points.
During a press conference, Fed Chair Jerome Powell appeared to play down the ongoing U.S. banking crisis and its aftermath while hinting that the day’s interest rate hike may be the last.
In prepared remarks, Powell said that the Fed believes that “events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes.”
“It is too soon to determine the extent of these effects, and therefore too soon to tell how monetary policy should respond,” he stated.
“As a result, we no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy firming may be appropriate.”
BTC/USD initially saw local lows of $27,867 on Bitstamp around the events before returning to trade above $28,000, only to continue falling at the time of writing as markets continued to digest Powell’s responses to press inqueries.
On rate hikes specifically, he said that the terms “may” and “some” as opposed to “ongoing” would be best to describe future policy.
Markets taking Fed decision as slightly dovish as forward guidance statement makes pause in May more likely. Fed now says that “some additional pol firming may be appropriate.” This is downgrade from prior statement. Dollar drops, Gold, Bitcoin, stocks rise, Yield curve steepens. pic.twitter.com/5jpIbunveI
Reacting, some commentators nonetheless described Powell’s Fed as “hawkish” in prioritizing inflation above the banking crisis by continuing hiking.
“The Fed have shown thus far, that they are committed to rates higher for longer + inflation as enemy #1,” Tedtalksmacro wrote in part of Twitter follow-up.
BTC price comes full circle
Bitcoin, thus, did not deliver the trip to $30,000 some had hoped for in the run-up to the rate hike decision.
“Shorts liquidated then longs liquidated. Back to the same price we were an hour ago,” analyst Matthew Hyland summarized.
Data from monitoring resource Coinglass put the total crypto liquidations for the day at $36 million and $78 million for shorts and longs, respectively.
Crypto liquidations chart. Source: Coinglass
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Bitcoin (BTC) has been sustaining above the $25,000 level for the past few days, increasing the likelihood that the bear market may have ended. Generally, in the initial stages of a new bull phase, several analysts remain in a state of disbelief and expect the resumption of the downtrend.
Another group of traders continues to wait for the dip to buy at lower levels, but the price does not oblige. Finally, the traders sitting on the fence throw in the towel and buy, and that is when the correction is likely to happen. Such a pullback shakes out the weak hands and transfers the asset into the hands of investors with conviction.
When a new trend is getting established, certain events tend to cause a knee-jerk reaction, but it is unlikely that the trend is reversed. In Bitcoin’s case too, a drop to trap the aggressive bears is possible, but there is a low possibility that the bear market will resume.
What are the important levels to watch out for on the upside and the downside in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
After a two-day consolidation, Bitcoin has risen above the $28,500 overhead resistance on March 22. This suggests that the bulls have asserted their dominance.
BTC/USDT daily chart. Source: TradingView
The upsloping 20-day exponential moving average, or EMA ($25,180), and the relative strength index, or RSI, in the overbought zone indicate the path of least resistance is to the upside. A break above $28,500 will clear the path for a possible rally to the $30,000–$32,500 resistance zone.
In case of a correction, the first support to watch on the downside is $25,250. If the price rebounds off this level, it will suggest that the neckline of the head and shoulders (H&S) pattern has flipped into support.
The problem will arise if the $25,250 level cracks, as that may trigger the stops of several bulls. The BTC/USDT pair could then nosedive to the 200-day simple moving average, or SMA ($20,020).
Ether price analysis
Ether’s (ETH) bounce off $1,717 suggests that the bulls are purchasing the minor dips and not waiting for a deeper correction to buy. However, buyers failed to overcome the obstacle at $1,842, indicating that bears are protecting this level with all their might.
ETH/USDT daily chart. Source: TradingView
Usually, a tight consolidation near a local top suggests that the bulls are not closing their positions in a hurry as they anticipate another leg higher. The rising 20-day EMA ($1,679) and the RSI in the positive territory indicate that bulls have a slight edge.
If buyers thrust the price above $1,842, the ETH/USDT pair may jump to $2,000 and later attempt a rally to $2,200. This bullish view will invalidate in the near term if the price turns down and plunges below the 20-day EMA. The pair may then fall to $1,600.
BNB price analysis
The failure of the bulls to push BNB (BNB) above $346 in the past few days shows that the bears are fiercely guarding the level. That may have resulted in profit-booking by the short-term bulls, which has pulled the price toward the 20-day EMA ($314).
BNB/USDT daily chart. Source: TradingView
If the price rebounds off the 20-day EMA, it will suggest that the sentiment has turned positive and traders are viewing the dips as a buying opportunity. The bulls will then make one more attempt to clear the hurdle at $346. If they succeed, the BNB/USDT pair could soar toward $400.
On the other hand, if the price plummets below the 20-day EMA, it will suggest the start of a deeper correction toward the 200-day SMA ($288). The pair may then oscillate between $280 and $346 for a few days.
XRP price analysis
XRP (XRP) skyrocketed above the 200-day SMA ($0.40) and the stiff overhead resistance of $0.43 on March 21, indicating a buying stampede.
XRP/USDT daily chart. Source: TradingView
After the sharp rally, traders seem to be booking profits near $0.50. That has resulted in a pullback to the breakout level of $0.43. If bulls flip this level into support, the XRP/USDT pair may again try to rise above $0.50. If that happens, the pair could soar to $0.56. A break and close above this level will indicate the start of a potential new uptrend.
Conversely, if the price continues lower and breaks below the $0.43 support, it will suggest that traders are rushing to the exit. That could trap the aggressive bulls and sink the pair to the 200-day SMA.
Cardano price analysis
Cardano’s ADA (ADA) surged above the moving averages on March 21, indicating that lower levels are attracting buyers.
ADA/USDT daily chart. Source: TradingView
However, the bears have not yet given up and are trying to halt the recovery at $0.39, as seen from the long wick on the March 21 and 22 candlesticks. The onus is on the bulls to flip the moving averages into support. If they manage to do that, the ADA/USDT pair could rally to the neckline of the developing H&S pattern.
Contrarily, if the price turns down and slips below the moving averages, it will indicate that higher levels continue to attract sellers. The pair could then descend to $0.30.
Dogecoin price analysis
Dogecoin (DOGE) has been trading between $0.07 and the 200-day SMA ($0.08) for the past few days. This suggests indecision among the bulls and the bears about the next directional move.
DOGE/USDT daily chart. Source: TradingView
The flattish moving averages and the RSI near the midpoint suggest that the range-bound action may continue for some more time. The first sign of strength will be a break and close above the 200-day SMA. That could open the doors for a possible rise to $0.09 and later to $0.10.
If bears want to gain the upper hand, they will have to sink the price below the support at $0.07. The DOGE/USDT pair may then slump to $0.06 and subsequently to the crucial support at $0.05.
Polygon price analysis
Polygon’s MATIC (MATIC) has been swinging above and below the 20-day EMA ($1.15) for the past few days, indicating a lack of direction. The bulls are buying on dips, while the bears are selling the rallies.
MATIC/USDT daily chart. Source: TradingView
The flat 20-day EMA ($1.15) and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. This suggests that the MATIC/USDT pair may consolidate between $1.05 and $1.30 for a while.
The longer the price consolidates in the range, the stronger the eventual breakout from it will be. If bulls force the price above $1.30, the pair may accelerate to $1.57 and thereafter to $1.75. Alternatively, if the price breaks below the 200-day SMA ($0.96), it will suggest that bears are back in command. The pair could then tumble to $0.69.
Buyers tried to push Solana’s SOL (SOL) above the downtrend line on March 20, but the bears held their ground. A minor positive in favor of the bulls is that they did not allow the price to dip below the 20-day EMA ($21.18).
SOL/USDT daily chart. Source: TradingView
The RSI is in positive territory, indicating a slight advantage to buyers. If bulls thrust the price above the downtrend line, it will signal a potential trend change. The SOL/USDT pair could first rise to $27.12 where the bears may again mount a strong defense. If buyers overcome this hurdle, the pair could pick up momentum and rally to $39.
Contrarily, if the price turns down from the current level and breaks below the 20-day EMA, it will suggest that bears are trying to gain the upper hand. The pair may then slide to $15.28.
Polkadot price analysis
Polkadot’s DOT (DOT) bounced off the 200-day SMA ($6) on March 21, indicating that the bulls are trying to flip the level into support.
DOT/USDT daily chart. Source: TradingView
The flattish 20-day EMA ($6.18) and the RSI near the midpoint signal a balance between supply and demand. This balance will tilt in favor of the buyers if they propel the price above the 61.8% Fibonacci retracement level of $6.85. The DOT/USDT pair could then climb toward the neckline of the developing H&S pattern.
The bears are likely to have other plans. They will try to protect the overhead resistance and sink the price below the 200-day SMA. If they do that, the pair may again slump to $5.15.
Shiba Inu price analysis
Shiba Inu (SHIB) is getting squeezed between the downtrend line of the descending channel pattern and the psychological support at $0.000010.
SHIB/USDT daily chart. Source: TradingView
This tight-range trading is unlikely to continue for long, and a breakout looks imminent. The price has been clinging to the downtrend line, which suggests that the SHIB/USDT pair is likely to climb above the channel. There is a minor resistance at $0.000012, but if this level is crossed, the pair may rise toward $0.000016.
This positive view will be negated in the near term if the price turns down and plunges below the $0.000010 support. That could pull the pair down to $0.000008.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Magic Eden has launched the first fully audited Bitcoin NFT marketplace.
The marletplace has integrated two non-custodial wallets to support seamless transactions.
Magic Eden now supports NFT marketplaces for Solana, Ethereum, Polygon and Bitcoin.
Cross-chain NFT platform Magic Eden has added to the impetus around NFT Ordinals on Bitcoin by launching a fully audited Bitcoin NFT marketplace. The digital artifacts marketplace will feature everything from images and audio clips.
Magic Eden’s move means traders within the ecosystem are set to benefit from being able to buy and sell Bitcoin-based inscriptions tied to satoshi – the smallest unit of measuring value for BTC.
A new dimension to NFT universe
In a press release published on Tuesday, Magic Eden noted the infrastructure supporting Bitcoin inscriptions is growing, even as the network counts over 400,000 such digital artifacts so far.
At the moment, the Bitcoin NFT marketplace has integrated two non-custodial wallets – Hiro and Xverse – with support for features such as listing, delisting and buying and selling. The marketplace already offers access to more than 70 collections.
3/ Why Bitcoin? Ordinal digital artifacts exist on-chain, never off-chain, and are totally immutable, meaning they cannot be altered in any way.
Add the security aspect of BTC & the decentralization of its nodes, and you get the ultimate home for true digital collectibles.
Commenting on the development, Magic Eden co-founder and CEO Jack Lu, noted:
“Adding a Bitcoin marketplace is really exciting for our team, considering it is the grandfather of all blockchains and we are all passionate about blockchain. Bitcoin Ordinals bring a whole new dimension into the universe of NFTs.”
Part of the early efforts aimed at accelerating adoption include Magic Eden’s partnership with 13 top collections, including Inscribed Pepes, Taproot Wizards and Bitcoin Bandits. Digital artfacts on the platform will be subject to top quality filtering, with collectors having access to details such as Ordinal rarity, name, inscription number, age and so forth.
“On Bitcoin, all media that is uploaded onto the chain cannot be changed or removed,” Lu said in a statement. “This simplicity is embraced by many creators who want to create true collectibles that are inscribed onto the chain. We’re excited to bring our winning marketplace user experience we’ve developed over the last year and a half to Bitcoin.”
Magic Eden’s release of a Bitcoin NFFT marketplace builds on the company’s solid foundation as a top provider of blockchain and Web3 solutions. While it remains the leading NFT marketplace for Solana, this latest move adds to recent expansions to Ethereum and Polygon.
Centralized regulatory organizations typically govern the inflation of asset prices in traditional capital markets. Is that the same in Web3? Who ensures fair play?
In the United States, the Federal Reserve (the Fed) assumes the responsibility of maintaining inflation at reasonable levels by implementing tools such as altering interest rates, bond-buying programs and money printing. This obligation is typically similar across most other nations. In Web3, inflation is controlled by the protocol’s monetary policy, which is determined by the community through decentralized governance.
Deflationary mechanisms are interwoven into the tokenomics while creating the ecosystem. Where tokens have an unlimited supply, as the token ecosystem matures, there would be more opportunities for burn. Therefore, the organization managing the token must proactively identify these opportunities and embed them into the tokenomics to reduce the supply.
The Ethereum Merge is a fine example of how the Ethereum supply and demand was tweaked to make it deflationary. Such significant tokenomics changes are typically proposed, approved and executed by a decentralized autonomous organization (DAO) that governs the token and the platform behind it.
These tokenomics changes are then embedded into smart contracts as the rules of the ecosystem. Smart contracts drive the new business rules and the economic model of the ecosystem. As a result, DAOs could play a significant role in ensuring efficient and effective governance of the tokens.
Since decentralization is one of the tenets of the blockchain world, an economic system not controlled by the founding teams, investors, venture capitalists and whales is crucial to delivering sustainable tokenomics based on sound business models.
