The SEC Statement Cut the Cryptocurrency Market by $90 Million – Proving Brad Garlinghouse Right!
Proving Brad Garlinghouse right about an oversized reaction
The Market’s “Oversized Reaction” to the SEC Statement
The cryptocurrency market has been in a lull since the SEC came out with its statement on ‘potentially unlawful online platforms for trading digital assets’ on Wednesday, March 7th. Brad Garlinghouse, CEO of Ripple’s point of view with regards to the statement read as: “the market is having an outsized reaction.” We looked at some numbers and proved that this is indeed the case.
While the SEC’s statement targeted online trading platforms that they suspect to be potentially harmful with regards to trading digital assets, the impact seems to have trickled down to even well-established cryptocurrencies and exchanges. Over the past two days, cryptocurrency market leaders have witnessed a bearish sentiment, driving the entire market down with it. Bitcoin (BTC) is down 12.85%, Ethereum (ETH) is down 13.75%, and Ripple (XRP) has shed 10.51% (as of March 9th, 5:40 AM UTC) since the March 6th close (chart above).
$90 Million Shed in Two Days!
The statement was impactful enough to cut $90.8 million in market capitalization (from $442.8 million on March 6th close to $352 million by March 9th opening) the cryptocurrency market, which is down by 20.5% overall.
Ripple CEO Comments on Three Options That Exchanges Have Regarding ICO Listings
Garlinghouse also shared his views regarding ICO listings: “Exchanges ultimately have three options ahead of them: de-list ICOs, register, or close”.
My POV on the SEC statement today – the market is having an outsized reaction. Exchanges ultimately have three options ahead of them: de-list ICOs, register, or close. Certainly big implications for ETH given ERC20 tokens.
— Brad Garlinghouse (@bgarlinghouse) March 8, 2018
He also noted that the statement had big implications for ETH, given the fact that the majority of these token offerings are ERC-20 tokens, which share a standard list of rules for Ethereum-based smart contracts. 356 of 479 completed ICOs on cryptocompare.com were found to be of the ERC-20 token type; 51 of the ongoing 54; and 27 of the upcoming 35 ICOs. That’s about 95% of all completed ICOs.