Ether, one of the best performing cryptocurrencies during the boom of last year, is making another nose dive on Wednesday.
analysts also say that investor enthusiasm is eroding due to the scrutiny of the coin offerings that they built on the Ethereum platform.
The Securities and Exchange Commission said at the beginning of the The year that ethereum is not a security, but the president of the agency said initial offers of coins, many of which were built on the blockchain platform of Ethereum, are in fact securities subject to the SEC law.
Tons of those projects failed from launch during the crypt boom and they had to sell a significant portion of the ethereum holdings to manage cash flow and expenses.
Tuesday, a federal judge in New York refused to bows a case that two cryptocurrencies were not criminal law. The Brooklyn District Judge in New York said that a reasonable jury should be able to apply the so-called Howey Test, which is applied to the titles.
While the CoinFi union considers the regulation to be a positive element for the long term and the only way to inaugurate a "healthier market", investors do not seem to agree.
"Others see this as a cause of panic – the end of the lax rules and the low hanging fruit to which they have become accustomed," Tam said. "Now you have a decision on the table which actually means that ICOs are now subject to the securities law."
Bitcoin was predominantly flat on Wednesday, trading near $ 6,269 while the rest of the cryptocurrency scene was mixed. The XRP rose 5% and Stellar rose by 4.8%. Meanwhile, Bitcoin Cash dropped 7 percent, EOS was down 1 percent, according to CoinMarketCap.com.
The entire cryptocurrency market has suffered alongside the ether in 2018. The total capitalization of the encrypted market has declined by about 68 percent since January 1, according to CoinMarketCap.com.