Ethereum crashes after SEC chairman says ‘merger’ might flip crypto right into a safety – Gizmodo

Gary Gensler, Chairman of the SEC, testifies Thursday, September 15, 2022 during a Senate Committee on Banking, Housing and Urban Affairs hearing in Washington, DC.

Gary Gensler, Chairman of the SEC, testifies Thursday, September 15, 2022 during a Senate Committee on Banking, Housing and Urban Affairs hearing in Washington, DC. Photo: Graeme Sloan/Sipa USA (AP)

Ethereum, the world’s second-largest cryptocurrency, continued to plummet in price over the weekend after the network’s widely publicized technical change known as “the merging‘ last Thursday, as well as comments from the head of the Securities and Exchange Commission that Ether may need to be treated as a security. Ethereum is currently trading around $1,290, down over 11% from 24 hours ago, while Bitcoin, the world’s most popular crypto, is also down 8% to just $18,420.

Ethereum completed a network upgrade called “The Merge” last Thursday, moving the cryptocurrency from a proof-of-work system to a proof-of-stake system. Proof-of-work was incredibly energy-intensive and required so-called “miners” to run their computers through a guessing game to verify transactions. Proof-of-Stake allows people who already own Ether to “stake” their cryptocurrency to verify transactions against longer-term interest, which is earned similar to how a savings account might earn interest.

And therein lies the problem. The move to a “proof-of-stake” system means that people who invest in Ethereum and then “stake” their Ether are more likely to treat their investment as something more akin to security than currency — especially since very few do People actually use ether to pay for things. And the staking has drawn the attention of the likes of SEC Chairman Gary Gensler, who has made post-merger comments that have crypto investors nervous.

“From the coin’s perspective…this is another indication that under the Howey Test, the investing public expects gains based on the efforts of others,” Gensler said Thursday, according to a report by the Wall Street Journal.

As the journal notes, Cardano and Solana are already two popular proof-of-stake coins. Cardano is down 80% YoY, while Solana is down 78% YoY.

Bitcoin is currently trading around $18,420, down 8% over the past 24 hours and well below the all-time high of $68,000 set on November 9, 2021. Also, in the fall and winter of 2021, you started watching all of these television commercials from celebrities like Matt Damon, Larry David, and LeBron James. Funny how they begged you to buy on top just as smart money was exiting their positions. The Ether Foundation, to give just one example, has sold a huge amount of Ethereum rights at the top of November. They’re either very lucky or it’s all a Ponzi scheme.

Click through for a look at how the world’s top cryptocurrencies are faring Monday morning. Not only during the day, but also in the past week everything has been canceled. Over the past 24 hours, BNB is down about 7%, XRP down 10.6%, Cardano down 10.7%, Solana down 8.6%, and Dogecoin down 8.5%. Rounding out the top ten cryptocurrencies, Polkadot is down 12%, Shiba Inu is down 1.4%, and Lido Staked Ether is down 10.7%.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

Dot sample [DOT]: Does a drop on this entrance imply a drop on this entrance – AMBCrypto Information Polkadot

Dot sample [DOT]: Does a drop on this entrance imply a drop on this entrance – AMBCrypto Information

Dot pattern, she had one high development activity For quite some time we've been...

By Roger Gofman
Metacryp’s Stress-free Gameplay, Polkadot’s Canary Community, and Polygon’s Versatile Framework – Euro Weekly Information Polkadot

Metacryp’s Stress-free Gameplay, Polkadot’s Canary Community, and Polygon’s Versatile Framework – Euro Weekly Information

If you go to coinmarketcap.com today, you will probably be surprised by the number...

By Roger Gofman
Will Crypto Leaders Polygon and Polkadot Be Outperformed by New Gaming Token Moshnake – Tekedia? Polkadot

Will Crypto Leaders Polygon and Polkadot Be Outperformed by New Gaming Token Moshnake – Tekedia?

Over the past few weeks, the upcoming BNB Smart Chain (BNB) based asset, Moshnake...

By Roger Gofman
The Nike Zoom Pegasus Turbo Subsequent Nature Returns With Polka Dots – Sneaker Information Polkadot

The Nike Zoom Pegasus Turbo Subsequent Nature Returns With Polka Dots – Sneaker Information

The Nike Zoom Pegasus Turbo Next Nature has a name, but it's also an...

By Roger Gofman
Bitgreen Raises $5M in Crowdfunding to Launch Premier Polkadot Local weather-Funding Platform – Monetary IT Polkadot

Bitgreen Raises $5M in Crowdfunding to Launch Premier Polkadot Local weather-Funding Platform – Monetary IT

Bitgreen Raises $5M in Crowdfunding to Launch Premier Polkadot Climate Investment Platform Bitgreen, the...

By Roger Gofman
Like Polygon and Polkadot, Immunicorn Finance is poised to take decentralization to a brand new degree |  Bitcoinist.com – Bitcoinist Polkadot

Like Polygon and Polkadot, Immunicorn Finance is poised to take decentralization to a brand new degree | Bitcoinist.com – Bitcoinist

Decentralized tokens are making waves in the cryptocurrency market. Tokens, which allow ecosystem users...

By Roger Gofman
Huge Eyes Coin, Filecoin and Polkadot Are Three of the Most Promising Subsequent-Gen Cryptocurrencies – Euro Weekly Information Polkadot

Huge Eyes Coin, Filecoin and Polkadot Are Three of the Most Promising Subsequent-Gen Cryptocurrencies – Euro Weekly Information

The advent of cryptocurrencies has made it possible to obtain monetary value in a...

By Roger Gofman
Polkadot Value Prediction 2022: Is DOT Value Shopping for?  – GOBankingRates Polkadot

Polkadot Value Prediction 2022: Is DOT Value Shopping for? – GOBankingRates

Salarko/Getty Images Polkadot is currently the #11 largest cryptocurrency in the world. Although it...

By Roger Gofman

Latest Posts

Dot sample [DOT]: Does a drop on this entrance imply a drop on this entrance – AMBCrypto Information Polkadot

Dot sample [DOT]: Does a drop on this entrance imply a drop on this entrance – AMBCrypto Information

Dot pattern, she had one high development activity For quite some time we've been...

By Roger Gofman
WEF Launches Crypto Sustainability Coalition to Use Web3 Applied sciences in Combat In opposition to Local weather Change – Blockchain Bitcoin Information – Bitcoin Information Stellar

WEF Launches Crypto Sustainability Coalition to Use Web3 Applied sciences in Combat In opposition to Local weather Change – Blockchain Bitcoin Information – Bitcoin Information

The World Economic Forum (WEF) created the Crypto Sustainability Coalition, an initiative dedicated to...

By Roger Gofman
Mihai’s Ethereum Venture Replace. The First 12 months. Ethereum

Mihai’s Ethereum Venture Replace. The First 12 months.

Into the ether Hello, fellow Ethereans. I am Mihai Alisie, one of the Ethereum...

By Roger Gofman
Is Binance USD (BUSD) Heading within the Proper Route on Sunday?  – Traders Observer Binance

Is Binance USD (BUSD) Heading within the Proper Route on Sunday? – Traders Observer

Binance USD receives a strong long-term technical score of 71 from InvestorsObserver's research based...

By Roger Gofman
Ethereum co-founder Vitalik Buterin expects Dogecoin and Zcash to maneuver to PoS |  Bitcoinist.com – Bitcoinist Dogecoin

Ethereum co-founder Vitalik Buterin expects Dogecoin and Zcash to maneuver to PoS | Bitcoinist.com – Bitcoinist

Ethereum co-founder Vitalik Buterin believes that other blockchains like Dogecoin and Zcash should follow...

By Roger Gofman
MASSIVE BITCOIN PROBLEM TODAY!!!! [careful now] BITCOIN PRICE PREDICTION 2022 // BITCOIN NEWS TODAY Videos

MASSIVE BITCOIN PROBLEM TODAY!!!! [careful now] BITCOIN PRICE PREDICTION 2022 // BITCOIN NEWS TODAY

Bitcoin News Today - MASSIVE BITCOIN PROBLEM TODAY!!!! [careful now] BITCOIN PRICE PREDICTION 2022...

By Roger Gofman
Cardano Vasil: Charles Hoskinson Talks One other Factor That May Profit Blockchain – U.As we speak Cardano

Cardano Vasil: Charles Hoskinson Talks One other Factor That May Profit Blockchain – U.As we speak

Tomiwabold Olajide Cardano is the third largest blockchain with a staking market cap of...

By Roger Gofman
Ethereum

Ethereum Builders: Ein vorgeschlagenes Experiment

Hallo, liebe Ethereer. Ich bin Mihai Alisie, einer der Gründer von Ethereum, und seit...

By Roger Gofman