[ad_1]
Ether, which has a market capitalization of about $ 65 billion, fell about 6% on Tuesday, and traded close to $ 652, according to CoinMarketCap.com.
The analysis is based on the fact that the founders of virtual currencies other than Bitcoin have no control over their value, similar to the way in which the managers of a company could influence the value of a company's shares on the basis of a strategy and investments.
Two federal regulatory agencies have applied different definitions to what exactly a cryptocurrency is. The Commodity Futures Trading Commission has labeled them as commodities, which means they are exempt from SEC regulation. On the other hand, the SEC has indicated that it sees cryptocurrencies as securities. In March, the agency said it is trying to apply securities laws to everything from cryptocurrency exchanges to digital asset storage companies known as portfolios.
Senior SEC and CFTC officials are among those scheduled to discuss the issue on Monday, the Journal reported, citing people familiar with the issue.
The Ethereum foundation raised more than 31,000 bitcoins in July 2014, worth approximately $ 18.3 million at the time, when it sold the first 60 million ether. As investors were speculating that the launch would result in an increase in asset value, the deal resembled a security stock, the Journal said.
Ethereum is the name of the company that created digital token ether. The company has created a platform for blockchain-based applications, the same technology behind bitcoins. Ether was launched for the first time as a fundraising effort to develop the platform.
A consortium called the Enterprise Ethereum Alliance, which includes companies like Microsoft and J.P. Morgan, is developing the uses for the Ethereum blockchain.
Source link
