Ethereum is currently the second largest cryptocurrency, but it as actually dropped by nearly 3% over the past couple of days. Ethereum is not the only cryptocurrency to suffer, and it is down to the threat of regulation. It has faced many warnings regarding its volatility and along this comes fears that the crypto ‘bubble’ is about to burst.
The Securities and Exchange Commission have announced plans to regulate the cryptocurrency market, at the same time that traders had to face more claims of hacking. These both came in the same week that one Japanese Bitcoin holder, known only as the Tokyo Whale created chaos in the world of crypto.
Many are worried that Ethereum has simply lost its appeal, with even its co-founder, Joseph Lubin saying it is ‘hard to tell’; however does not agree with the claim that the bubble is set to burst. He said;
“We are so focused on building decentralised applications on the Ethereum platform where we are so much less focussed on cryptocurrencies like Bitcoin…Consider Ether to be a crypto fuel that powers applications on the decentralised worldwide web…But I would argue that we’ve seen a correction in our space but calling the bubble to have been popped is a little shortsighted.”
There is still hope for Ethereum though, and plans are already underway to make trading more accessible, by announcing their proposed partnership between ConsenSys, and TrueDigital. There is confidence that the collaboration will see the creation of a target reference index for Ether, which could see a significant rise in value for Ethereum. The founder of TrueDigital, Sunil Hirani said;
“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities…But the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.”