At press time, ether coin is trading for about $603. That’s roughly $13 higher than where it stood during yesterday’s afternoon hours. The currency has once again broken the $600 line, which would likely place new resistance levels at $660 or higher.

However, ether has a new reason to watch its back. In a recent interview with CNBC, SEC chairman Jay Clayton explained that bitcoin will always be a commodity. The coin is designed to replace entities like USD, the yen, the euro, and any other form of national, fiat currency. This purpose outweighs the idea that traders can still garner capital from bitcoin investments, and thus it is not subject to securities regulations.

Several altcoins, on the other hand, fall into a different category. Many smaller, competing cryptocurrencies have been distributed through initial coin offerings, or ICOs. The goals of organizers and investors alike are to place money into new virtual assets and thus boost their reputations while garnering various rewards for early traders and investors.

At the end of the day, the purpose of an ICO is to raise money, which classifies any cryptocurrency distributed through such means as a security, and thus subject to SEC regulations.

Ether may be one of these coins. In recent years, the currency has become largely decentralized, and thus classifying it as a security by any modern standard wouldn’t make much sense. In its early days, however, ether classified as a presale (now known as an ICO) coin, and the big question is whether the Securities and Exchange Commission will view ether by its newest or oldest form. Will they see it for the decentralized currency that it is, or will it be placed in the securities category along with others?

Granted ether is classified as a security, the price of the coin could be largely affected, and investors may see Ethereum take a nasty stumble down the financial well. It will be interesting to see if the SEC’s hard stance has a short-term effect on Ethereum’s price, and drags it back down to the $500 level as regulators continue to analyze their options.

In the meantime, Ethereum continues to garner newfound attention and popularity, particularly through a new blockchain-based game called Crypto Cup. Participants can offer predictions regarding the winner of this year’s World Cup game, and are rewarded with Ethereum-based tokens if their predictions prove valid.

Players have between now and June 14 to log in through a platform called Meta Mask and make their predictions. Once they’re set, players are given the chance to build their tokens – or golden tickets, as they’re called – and set values for each one. There’s also an “express mode” in the game, where players can predict the top four teams that they think will win. Once the World Cup begins, predictions cease and players begin trading tokens with each other.

CEO and co-founder of Crypto Cup Federico Goldberg explained:

The World Cup is the single biggest sporting event in the world. Over three billion people, almost half the world, tune in. We wanted to combine that popularity with blockchain technology to build something different than an ICO or collectible.”

Charts by TradingView

LEAVE A REPLY

Please enter your comment!
Please enter your name here