Regulators in Canada and US launched “Operation Crypto-Sweep” targeting cryptocurrency investment schemes. The initiative is working on at least 70 open investigations and 35 pending or completed enforcement actions. It is the ‘tip of the iceberg.’
“The market for cryptocurrency investments is saturated with fraud, and our work is only revealing the tip of the iceberg,” says Joseph Rotunda, director of enforcement at the Texas State Securities Board. The NASAA leads the operation.
In the same line, William Francis Galvin, the state’s secretary of the commonwealth, stated that “Not every ICO or cryptocurrency-related investment is fraudulent, but we urge investors to approach any initial coin offering or cryptocurrency-related investment product with extreme caution.”
Robert Schiller doesn’t believe in cryptos
Nobel winning Rober Schiller affirmed that cryptocurrencies resemble some of the most failed currency experiments in history.
In a blog post, the economist wrote about the “time money,” a currency from the early 19th century that worked on units of work; or the Dollar by electricity during the Great Depression which also failed.
“Each of these monetary innovations has been coupled with a unique technological story,” posted Schiller. All these currencies, according to the author, were connected to a kind of breathtaking technology.
“Practically no one, outside of computer science departments, can explain how cryptocurrencies work, and that mystery creates an aura of exclusivity.”
Colorado to approve crypto funding for politicians
It may sound weird the day you will be able to fund political campaigns in cryptocurrencies, but you will not be able to keep it in your bank account. Well, it seems to be the near future.
Colorado Secretary of State included a cryptocurrency addendum in a working draft of political finance rules and regulations published Monday. Thought contributions could not exceed $20.
The proposal says: “A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts.”
Bitcoin down on Monday; negative on Tuesday
Crypto king is trading down on Tuesday after closing Monday with losses after three days of gains. BTC/USD is extending its rejection from the 8,600 area.
Bitcoin is trading 1.3% negative against the US Dollar on Tuesday as the pair is pricing at 8,290. The cross remains subdued by a dynamic line coming from April 9 and May 12 that now is acting as resistance at the 8,600 area.
If the pair extends its decline, it will find next support at the 8,000 area and may 18 low of 7,920. Then, the pair would find buyers around 7,500.
Expectations for recovery are limited as the pair remains below the 8,600 and 8,800 areas. However, if the unit clears up these levels, next resistances are at 9,000, 9,200 and 9,500.
Bitcoin cash supported by the 50-day MA, but for now
Bitcoin Cash is trading in a consolidation mode after falling 35% from May 6 high at 1,843 to 1-month low at 1,130. The BCH/USD is now testing the 50-day moving average at 1,162.
If the pair breaks below the 1,160 area, it will find supports at 1,120, 1,000 and 845. To the upside, the pair needs to clear up the May 20 high of 1,319. Above, the 20-day moving average will wait for the pair at 1,426.
ETH/USD sticking below the 200-day MA
Ethereum is trading down for the second day after extending a rejection from the 20-day moving average on Monday and Tuesday. The pair is currently trading at 688.00, 1.2% down on the day.
As noted yesterday, Ethereum is in the middle of a moving averages sandwich. The 20-day moving average is acting as a resistance; while the 200-day MA is supporting the pair, at least in the short term.
To the downside, if the pair goes beyond the 200-day MA at 690.00. Next supports are at 640, May 12 low, the 600.00, and the 557.00 critical area.