Ethereum News Update
Earlier in the year, Ethereum co-founder Vitalik Buterin said that 2018 is when cryptocurrencies would have to live up to the hype from last year. It seems he might be right.
What we’re seeing this year is tectonic movement on regulatory issues, industry standards, and technical progress. Some of these changes are for the better, of course, but others could potentially hinder progress in the nascent blockchain industry.
Nevertheless, I view these shifts as a net positive for cryptocurrency platforms like Ethereum. The emerging consensus is that decentralized application blockchains, rather than straight currency plays, are going to win regulatory support.
But I digress.
Here are the top stories for today’s Ethereum news update:
- China’s crypto crackdown goes international? According to recent reports, a subdivision of China’s police force is monitoring overseas cryptocurrency exchanges. This is distinctly weird. I expect China to keep a close eye on its own exchanges, but watching foreign exchanges means they’re very serious about shutting all crypto flows out of the country. (Source: “Local Network Monitor closely monitor virtual currency circuitous transactions, the next step, such as superior notice,” Yicai, March 1, 2018.)
- Blockchain startups receive SEC subpoenas. The U.S. Securities & Exchange Commission (SEC) has been fairly generous in dealing with cryptocurrencies as a whole, but they still have an obligation to monitor initial coin offerings (ICOs). As part of that effort, they’ve issued subpoenas to the startups behind those ICOs. Don’t be too scared. It’s a routine tool that the SEC uses to figure out what’s happening. (Source: “Cryptocurrency Firms Targeted in SEC Probe,” The Wall Street Journal, February 28, 2018.)
- CFTC lets employees trade cryptos. It’s not a stretch to say that allowing federal employees to trade cryptocurrencies is a tremendously positive sign from the Commodity Futures Trading Commission (CFTC). It goes a long way toward legitimizing the asset class, not to mention that it helps regulators understand the market from the ground level. (Source: “Bitcoin-Futures Regulator Clears Employees to Trade Crypto Coins,” Bloomberg, February 28, 2018.)
As of Thursday morning, ETH prices are up 0.43% against the U.S. dollar and the Ethereum to USD exchange rate is around $870.60.
Ethereum Price Chart
Analyst Take
As I’ve said before, the second quarter of 2018 is likely to be much more upbeat than the first. We see no reason to alter our $1,500 Ethereum price forecast for Q2.
Source: Price Confidential