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Bitcoin [BTC] price crash is not due to SEC crackdown, says cryptocurrency Attorney Stephen Palley




Bitcoin [BTC] price crash is not due to SEC crackdown, says cryptocurrency attorney Stephen Palley
Source: Unsplash

The cryptocurrency market is suffering a bloodbath since the start of November. Bitcoin [BTC] has fallen down by approximately 80% since its all-time high. Stephen Palley, a blockchain and virtual currency Attorney spoke on Bloomberg regarding the recent crash of the cryptocurrency market.

Stephen Palley said that ICOs were interesting while they lasted because people could start a business and get investment capital without having to worry about the securities that the IPOs were usually burdened with. According to him, ever since the crackdown by SEC, ICOs have drastically reduced. He added:

“I don’t think that the model [ICO] is completely gone now. But the US is not the only market in the world and securities laws are different elsewhere. So I don’t think that we’ve seen the end of this, but what its gonna look like in the United States. I’m not sure.”

He went on to speak about what the crackdown meant for Bitcoin and other cryptocurrencies and said that he is a believer in the blockchain technology and also believes in Bitcoin. Palley stated:

“Also I would not write off Bitcoin, and I would not write off Ethereum and these are very interesting technologies. And if we were looked to look at this in terms of investment, it’s, you know, some people have won a lot. Some people have lost a lot, but its technology itself remains interesting.”

Stephen Palley spoke about the decision by the Securities and Exchange Commission [SEC] on two cryptocurrency startups [Paragon and AirFox] that were hosting illegal ICOs. He said that SEC is not in the “business of sending messages” when it comes to enforcing companies that violate securities laws. He said:

“If you look at the Paragon or AirFox orders that came out on Friday what they [SEC] say is actually pretty common sense, which is just because it’s newfangled technology doesn’t mean that established security principles don’t apply.”

He further added that these bold statements made by SEC are not the reason for the drop of Bitcoin’s prices. Palley stated:

“I’m not sure that there is necessarily any connection between recent SEC activity and the price of cryptocurrency that may or may not be the case but it’s difficult for me to see a necessary cause or relationship.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin’s [BTC] dump may have triggered migration of BTCs worth hundreds of millions




Bitcoin's [BTC] dump may have triggered migration of BTCs worth hundreds of millions
Source: Unsplash

Bitcoin dropped by 3.55% over 3 hours, an approximate drop of $200, causing many altcoins to dip by more than 8%. Although it might be a coincidence, thousands of Bitcoins started to migrate from wallets to exchanges, wallets to wallets, and exchanges to wallets.

Whale Alert, a Twitter user, pointed out the same in his tweets. A total of  25,000 BTC were sent in under 20 minutes, in multiples of 5000 BTC each, in a wallet to wallet transaction. Two of these transfers were initiated from an unknown wallet [3BYv2L9zCFYpvRQXakqkVWa7JyRw6Q9ZAm] to two other unknown wallets [3PWNGS2357TnjRX7FpewqR3e3qsWwpFrJH, 3CAF6ZjtJKaHiJixViXncTRwG3N5ss9vn4].

These 5 transfers were worth approximately $140 million. The third transfer took place from multiple wallets to a single wallet [3HuUiXmKN3beQSoM97kWjK1fesWWJvKvaZ].

Additionally, there were two massive transactions that took place two hours after the drop; the first transaction involved 14,999 BTC, while the second involved 11,000 BTC.

The former transaction was sent from two wallets to a single wallet [3GaB3nRWA1PLc3XQkkbpVtFwYYZEuMxD4i], which is the balance of the wallet. The latter transaction was similar to the one mentioned above, as the transaction originated from two wallets.

Another transaction containing 9,000 BTC was transferred from 357R3FeNmySYeHuRfyhFd6nMwzoLDdjfwV to 3NmHmQte2rP8pS54U3B8LPYQKkpG1pFF69. The sender has approximately 9,412 BTC after the transfer, while the recipient has 9,000 BTC.

All of the above transactions were worth approximately $332 million. The massive BTCs transferred could be due to the recent fall in the price. It can also be speculated that BTC whales were securing their profits earned from the shorts.

A Twitter user @Emperor_YZ commented,

“and who say the fee is high, just 30,360 sat ($1.67)🤔 for a $82.37 million transfer …”

Another user, @Omarin0, commented,

“It would have also been 1.67$ for a 1.67$ transfer. 100% fee. How nice”

@Emperor_YZ replied,

“wrong, you can use LN or other layer 2 apps to do small amount payments 😎 for BTC base layer, network security is always top priority, L2 is super cheap and can settle at base layer later”

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