Ripple, XRP turmoil?
There is a narrative among the cryptoeconomy Media and influencers that the latest action on behalf of Securities and Exchange Commission initiated a new round of turmoil in the crypto markets. This may be true, in relation to market participants, be it either on the Supply or Demand side, who were still operating under a “2017” mentality.
This of course included a perception of a regulatory landscape that simply is not in place anymore, or should I better say “not in absence”? For some time now, we have been receiving news of legislators not just willing to provide clarity, but also legislation. Regulators on the other hand were consistently warning of pending action in a number of cases that were perceived as violating the securities laws in the U.S.A., but not only there.
Legislation and regulatory action.
The last few months new legislation has been consistently been put in place in other jurisdictions as well, such as Member States of the European Union. This signifies that the crypto economy is closer than ever in being regulated in the European Union entirely. It will be as soon as the leading Member States conclude their efforts to adequately address certain issues without harming the tremendous potential for innovation that remains untapped even in our days.
Other jurisdictions which include mostly the developed and in some cases under development economies, are following through with equally good or less good legislation. The important clue to keep in mind is that all this activity has shaped a direction. In addition, to a certain extent has provided necessary clarity for regulators to start addressing those market players who are clearly diverging away from the current course.
It is impossible for any government agency to go after all the potential illicit activity, given the finite resources available. Most frequently they opt to start from well known projects that will signal the change of circumstances to everyone, through the headlines. I have confidence this is the case with Ripple, rightly so I believe.
It also seems to have worked, at least for those who were unaware of the changes that have been taking place for some time now.
The “gold rush” market participants.
For many retail investors and traders this event has been a wake up call. Thus, a collective market reaction probably triggered by this event, initiated a cascading price plunge for many “alternative tokens”. I do not believe though this is the only reason, as we have also seen in the past such behavior during Holidays.
Perhaps a portion of the market action should be ascribed to a reflective reaction in memory of the 2018 “Great Plunge” and the extensive bear market that followed. De spite the mainstream Media narrative of a bubble, I maintain the informed opinion it was just the last attempt to spook Institutional interest out of bitcoin at that time. The coordinated effort by a number of players involved in all sorts of market monopolies or oligopolies was obvious to anyone who has been following the news. It was still the era of “blockchain not bitcoin”.
A Macroeconomic outlook that smashed illusions.
Nowadays, the situation is different. We have experienced our lives condemned to poverty by government action, based on manipulated statistics. The pretext is “Public Health protection” which of course none of these governments ever had an interest in protecting. Just take notice of their stance in 5G technology roll out, to realize their sanctimonious hypocrisy.
The Macroeconomic outlook shaped by the endless money printing whose only aim is to put in place the “elite” that will “lead” the way to an ever oppressive future, forced a lot of Institutional players to seek refuge in bitcoin. Well, good for them, because that was one of the original reasons and anticipated use case it has been conceived against and for.
As a result, we are witnessing the price of bitcoin sustaining its levels at the moment, while panic has spread among almost all other crypto asset holders. This is not a repetition of a previous cycle. We are in a fundamentally different, not just market but world.
Whether we claim our lives back depends a lot on us, and the cryptoeconomy is a useful tool in our hands which will allow us to bypass the dystopian future being laid out for this and the following generations.
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