Ethereum, the second largest cryptocurrency in the world, is the network’s widely publicized “.merge‘ comments last Thursday and from the Chairman of the Securities and Exchange Commission that Ether may need to be treated as a security. Ethereum is currently trading around $1,290, down more than 11% from the previous 24 hours. Bitcoin, the world’s most popular crypto, is also down 8% to just $18,420.
Ethereum completed a network upgrade known as the “Merge” last Thursday, moving the cryptocurrency from a proof-of-work system to a proof-of-stake system. Proof-of-work is incredibly energy-intensive, requiring so-called “miners” to have computers play guessing games to verify transactions. Proof of Stake allows those who already hold Ethereum to “stake” the cryptocurrency to verify transactions and earn long-term interest in the same way a savings account earns interest. increase.
And there lies the problem. The move to a “proof of stake” system means that those who invest in Ethereum and “stake” ether are treating their investment as more like a security than a currency. thing. And staking caught the attention of people like SEC Chairman Gary Gensler, who made comments that made crypto investors nervous after the merger.
“From a coin perspective, under the Howie test, it’s another sign that investors expect profits based on the efforts of others,” Gensler said Thursday. . wall street journal.
As the journal points out, Cardano and Solana are two popular coins that operate using proof of stake. Cardano down 80% YoY, Solana down 78% YoY.
Bitcoin is currently trading at around $18,420, down 8% over the past 24 hours, well below its November 9, 2021 high of $68,000. The fall and winter of 2021 also happened to be the time when I started watching all this TV. Celebrity commercials such as Matt Damon, Larry David, and LeBron James. It’s funny they were begging you to buy at the top just before smart money let go of their positions.As just one example, the Ether Foundation has sold a ton of Ethereum rights at the top of novemberEither they are very lucky or this whole thing is a Ponzi scheme.
Click through to see how the world’s top cryptocurrencies fared Monday morning. Over the past 24 hours, BNB has fallen about 7%, XRP 10.6%, Cardano 10.7%, Solana 8.6% and Dogecoin 8.5%. Rounding out the top 10 cryptocurrencies, Polkadot dropped 12%, Shiba Inu dropped 1.4% and Lido Steaked Ether dropped 10.7%.