The Probable Crypto Breakdown Warning and the Boundary Setting by SEC
Peter Mallouk- the president and chief investment officer of wealth management firm Creative Planning, is pointing at the possible crypto collapse. In 2017 the firm was named the number 1 Independent Wealth Management Firm in America by Barron’s. And for the consecutive years- 2014-2015, it was named the number 1 Wealth Management Firm in America’ by CNBC. As per him in the coming times, not all the crypto assets will make it. He clearly stated that we are going to witness “cryptocurrencies collapse.” Very bluntly he rejected any possibility of “even a fraction of them” making it. Further, in his statement, he added-
“Is it possible that maybe one or two will work out in the future? Sure it is.”
Although he is supportive of the blockchain industry, on the other hand, he thinks that the crypto sector is very conjectural, quite new and is currently unstable. He even went ahead and called investing in Bitcoin and Ripple as dangerous and risky. He said-
“Blockchain technology is real, and you have got big companies like IBM and Accenture and others investing in it. That does not mean that Bitcoin is going to work out or Ripple is going to work out. The TV worked out, but everything that comes out of it, we do not want to watch. Palm and Blackberry were fantastic, but Apple came in and took them out. Lycos and Excite were here before Google.”
The US Securities and Exchange Commission SEC’s sets Milestone-
On 3rd April the US Securities and Exchange Commission (SEC) sent “no action” letter to a crypto company. In the letter the SEC stated that a crypto token business plan was found to be not securities, it does not afoul the regulations laid by the SEC, follows the commission’s rules. The SEC analyzed the situation with the help of the private jet company TurnKey Jets.
On the other hand, Turnkey Jets that no money will be used from the sale of its tokens towards developing its platform. It will produce utility token and not a security token. This situation has made Trunkey Jets stay at a distance from the SEC.
On this, the director of the corporation at the SEC- Bill Hinman said that the no-action letter by SEC could also be used as a template in the coming times for the companies who want to grow in the crypto sectors. Here is an excerpt from the letter-
“If TKJ (Turnkey Jets) offers to repurchase Tokens, it will only do so at a discount to the face value of the Tokens (one USD per Token) that the holder seeks to resell to TKJ unless a court within the United States orders TKJ to liquidate the Tokens…”
The Twitter land-
Going to the Twitter land, where most of the crypto activities bubble; Elon Musk- the former exec of PayPal, seems to be showing interest in Dogecoin. On 2nd of this month, he edited his biography section of his Twitter handle and added that he was the ex CEO of Dogecoin.
Dogecoin rulz pic.twitter.com/flWWUgAgLU
— Elon Musk (@elonmusk) April 2, 2019
He was also seen participating in a poll conducted by Dogecoin’s official Twitter account. There he mentioned that Doge is his favorite coin. He even posted a Doge related meme. The next Twitter activity from him was about BTC, where he mentioned the price of Dogecoin might change. The ‘Tech titan and Tesla engineer’ is often called the ‘Bitcoin brilliant.’ His equation with the crypto community is quite interesting to watch. He once said that he would even purchase ETH even if it would be a ‘scam.’