Our crypto weekly news this week features: Bitcoin’s recording its all-time high, more news on the effect of US SEC lawsuit against Ripple XRP, Tierion is also on hot waters after allegedly violating securities law, and Japan’s further adoption by launching its own digital currency.
Bitcoin Sets An All-Time High On Christmas Day!
BTC (Bitcoin) has had one of the most incredible bull runs in history, and it just made history again. The crypto started off the year on a weak note, only valued at $9,500. However, the year has turned out so much different from what everyone thought! During Christmas 2020, the cryptocurrency hit an all-time high of $24,667.63 before it fell back to $24,442.24, which was 5.92% lower than the highest value set by a digital asset. When the year started, we can comfortably say that Bitcoin enthusiasts have enjoyed more than 240% in gains, which is amazing. But it did not end there. After dropping for a while, the BTC price came back with a boom. On Dec. 26, its price already soared to $25K and continued to climb. As of writing, it has now surpassed the $29K mark with its price at $29,303 in recent data by Crypto.co.
Big exchanges such as Coinbase and others in a dilemma on Delisting XRP
US-based crypto exchanges are now placed between a rock and a hard place regarding XRP (Ripple). This asset is now drawing a lot of attention from the Securities and Exchange Commission (SEC), and exchanges have to figure out whether to continue listing XRP and antagonize the SEC or to delist it from their offerings. According to the commission, XRP is registered as a security and should never have been used by Ripple Labs in fundraising from retail customers. Because of the SEC’s heat, most of the smaller exchanges have already delisted the token. But it’s not that simple for more extensive exchanges such as Coinbase. If the SEC wins, it may destroy the altcoin’s value and result in Chairman Chris Larsen and CEO Brad Garlinghouse paying hefty fines, prejudgment interest, and civil penalties. If an exchange such as Coinbase refuses to delist the company, they may receive the SEC’s cold shoulder seeing that they are looking to take their company private.
Tierion to Repay ICO Investors
Tierion has suffered a devastating blow to its credibility. The SEC ordered the company to refund all monies received during their Initial Coin Offering (ICO) and those obtained from selling TNT tokens. Essentially, anyone affected in this way has about 60 days to ask Tierion for a refund at the cost people bought the product and interest. The order came after the commission found out that their $25 million initial coin offering (ICO) directly violated securities laws, which renders the ICO null and void. Additionally, the company has been ordered to stop trading the ERC-20 token based on Ethereum blockchain technology. Under the settlement’s terms, the company will pay the commission $250,000 in penalties and fines. Although they have to pay the penalties, reports from the SEC say that Tierion didn’t admit to any wrongdoing and issues a Reg-D waiver. This means that the company will not have to register future securities placements that are private because it cooperated fully with the commission.
XRP Liquidations Spike As the SEC Files a Lawsuit
Over the last two months, XRP has been all over the news and not for good reasons. Since the start of November, more than $1.5 billion in XRP futures contracts have been sold. According to data analytics provider Bybt, between March and October, less than $700 million had been liquidated at the time, which showed a certain degree of confidence. The value of XRP jumped 220% to just about $0.80 as traders anticipated the token airdrop event scheduled for December 12th, 2020. In anticipation of the bull market, people bought up as much as they could so that you can have as many as possible when the tokens are being released. This, however, was not to be the case as the SEC filed a lawsuit against Ripple for violating federal securities law. This had caused people to start dumping what they bought, which in turn pushed the prices downward.
Japan Set To Launch Its Digital Currency
In a bid to make their nation one of the most technologically sound in the world, Japan is gearing up to launch its very own digital currency to be used in both the private and public sectors. The plan is to create something similar to Facebook’s Diem by the year 2023. This is following China’s footsteps by using blockchain technology to make things better. China is the leading country in using blockchain technology to boost people’s social, economic, and financial lives. Although many central banks tend to take up a cautious stance in finance matters, the Bank of Japan is very serious about taking its currency to the next level. For instance, Hiromi Yamaoka, a former Bank of Japan official, says that’s china has taken the adoption of a digital currency to the next level because of the speed. Officials from the finance ministry say that once Japan has shifted from paper currency, more opportunities will be available to the citizens. The process of buying and selling goods will be that much swifter and efficient.