Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as keeping up with the Kardashians. I’ve rounded up the latest set of news to help y’all stay in the loop.
First off, here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of May 25, 3:00 am GMT. Another week mostly in the red!
Kashkari slams crypto
Yep, that’s no other than your favorite FOMC dove, Neel Kashkari!
The head of the Minneapolis Federal Reserve branch called the cryptocurrency industry a “farce” during a speech in at Bay College in Michigan early in the week. And the lack of any other positive developments then left bitcoin and its buddies extra sensitive to the haterade, as Kashkari said:
“It’s a clever idea that some people came up with, but now it’s being taken to ridiculous extremes. The barrier to entry to creating a new cryptocurrency is zero.”
He went on to say that he’s seeing more fraud than anything useful. However, he did clarify that a handful of altcoins could end up surviving but that many will be dropped off at some point. Here’s the full video if you’re interested:
Regulatory fears return
Another factor that kept a lid on crypto gains for the most part of the week was the return in regulatory jitters. For one, China’s Ministry of Industry and Information Technology reiterated its position that “certain risks that cannot be ignored” when it comes to ICOs.
While it highlighted the pickup in blockchain startups and investments for the year, it also emphasized that the country’s decade-old patent law might need revisions to keep up with innovation in the sector.
In the U.S., the CFTC issued a press release on its plans to provide regulatory guidance for exchanges listing virtual currency derivatives. It stated:
“CFTC staff is providing this information, in part, to aid market participants in their efforts to design risk management programs that address the new risks imposed by virtual currency products.”
Around the middle of the week, Spain’s central bank governor shared that he favors the possibilities of blockchain but is wary of cryptocurrencies. Luis María Linde noted that altcoins present more risks than benefits, citing:
“They have low acceptance as a means of payment, suffer extreme volatility, present multiple operational vulnerabilities and have been related to fraudulent or illicit activities in many cases.”
Later on, the U.S. Department of Justice announced that a criminal investigation into price manipulation by cryptocurrency traders has been opened. Word through the grapevine is that the probe will look into illegal practices that can influence prices.
One example of this is spoofing, which involves flooding the market with fake orders to trick other traders into buying or selling. Another example is wash trading, wherein a trader transacts with himself to give a false impression of market demand that lures other market watchers to jump in.
Tron gears up for mainnet launch
Reviewing the cryptocurrency weekly performance table above reveals that Tron (TRX) has notably been able to avoid huge losses, even chalking up a 9.25% gain for the past few days.
Much of this has to do with the upcoming mainnet launch by the end of the month, which would remove the virtual currency’s previous dependence on the Ethereum network. This promises to process transactions 100 times faster than Ethereum, provide users with zero-fee access, and be highly developer-friendly.
Tron is also slated to release a virtual machine that would allow developers to migrate their dApps from Ethereum to the Tron network.