Update: 16:50 GMT, Bitcoin falls below $5,000 to $4,998 on Coinbase
The market has dumped again. Bitcoin is off 5% at $5,335, with XRP down 7% to $0.47. Top alts are mostly lower by double figure amount, with Tezos the worst, at 16% lower, trading at $0.91.
Bitcoin fell to as low as $5,195 on Coinbase. It is now trading at a 13-month low.
Ethereum is falling more heavily than XRP, down 11% at $155, so the Ripple token is cementing its position in second place at the formers’s expense.
Litecoin has slipped below $40 to trade at $37.
Around $14 billion has been shaved off crypto market value in the latest plunge.
Market cap has dropped to $171 billion, with bitcoin threatening to revisit sub-5,000 levels.
Bitcoin Cash negative for crypto as SV shunned by Kraken
The Bitcoin Cash fork has highlighted for many the immature state of the crypto space, and is likely throw more doubt on the prospects for exchange traded funds any time soon.
Kraken for it part is supporting SV, but warning against investing in it. The US exchange is going so far as to state in a blog that large holders will be dumping the token and noting how its hostility to other chains puts its own existence in doubt.
WARNING: Bitcoin SV does NOT meet Kraken’s usual listing requirements. It should be seen as an extremely high risk investment. There are many red flags that traders should be aware of:
No known wallets supporting replay protection (be careful!)
No support in major block explorers
Miners apparently subsidized or operating at a loss
Representatives threatening and openly hostile toward other chains
Chain’s survival may be mutually exclusive with other chains
Supply is temporarily constrained because of limited wallet support
Some large holders have indicated they’d be dumping everything ASAP
Kraken has done only very minimal code review
Kraken adds: “Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV.”
Coin Dance also issued a statement updating the community:
Coin Dance is now able to declare that both active chains will continue to be permanently split into the foreseeable future. The majority of businesses in the cryptocurrency ecosystem are now using Bitcoin Cash (BCH) to refer to the chain maintained by miners operating in consensus with the latest implementations from Bitcoin ABC, Bitcoin Unlimited, Bitprim, Bitcoin XT, bcash, and bchd. A number of exchanges have added support for the Bitcoin SV chain under the Bitcoin SV (BSV / BCHSV) name but general app support is currently very limited. Expect to see announcements made from each of the major companies in the Bitcoin Cash ecosystem that clarify which chain(s) they will support going forward.
Regarding the dispute that led to the split, the folks at coin dance are diplomatic:
The Bitcoin SV community believes that dedicated hash is the key mechanism used for building network consensus. The Bitcoin Cash community believes that that miners, developers, businesses, and individuals should all have a voice on future protocol changes. Over time, we will see which of these two viewpoints ends up getting us closer to that dream of building digital cash for the entire world.
BCHSV hashrate has overtaken ABC for the first time since the fork, but hashrate isn’t everything coin.dance reminds Craig Wright.
BTCUSD 1-hour chart, Coinbase
ICOs fined by SEC and lack of institutionalization
KPMG has added to the negativity.
KPMG chief economist Constance Hunter said: “More participation from the broader financial services ecosystem will help drive trust and scale for the tokenized economy and help the crypto market grow and mature.”
She continued: “Consider for a moment extending a person or entity a loan in a cryptocurrency. The value is too unstable at the moment to be assured repayment. Under these conditions, neither lenders nor borrowers would be willing to take the risk of transacting in cryptocurrencies.”
The remarks were made in a report of the Institutionization of Cryptoassets.
Also adding to the storm clouds was news that AirFox and Paragon Coin have become the first ICOs fined and forced to list their tokens as securities by the SEC.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane