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Can Elon Musk Go To Prison For Manipulating Prices And Shilling Shitcoins?

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Elon Musk’s tweets have been a bone of contention for a while now. Every time the billionaire tweeted about a » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin, the price of that » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin skyrockets. The CEO of Tesla has been promoting coins that are fondly referred to as “shitcoins” on Twitter.

Musk has started with Doge in February when he tweeted out Doge. Then followed up with Doge is the people’s crypto. This immediately sent the price of the » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin rocketing as people start buying into the » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin. Elon would continue to do these with other altcoins.

One hotly debated topic is the legality of these tweets which seemed to be aimed at manipulating market prices.

Related Reading | Ledger Scam: Scammers Mail Hacked Ledger Devices To Steal Crypto

Some people have called this a version of insider trading. But there is nothing like insider trading laws yet in the crypto space due to cryptocurrencies still being heavily unregulated. There are no laws governing market manipulation. With high volatility, digital assets are very prone to be manipulated.

This is not the first time a prominent person has used their platform to shill coins. John McAfee was notorious for shilling ICOs without disclosing he was paid to do so. Which led to his subsequent arrest in Spain.

John McAfee’s Arrest

During the last bull market which started in 2017, ICOs were the big thing. Dozens of ICOs were being released each day and the market became saturated.

In order to get their coins in front of more eyes, the people behind the ICOs went the route of getting influential people to tweet about them. John McAfee was the obvious choice.

He alleged that he collected $105,000 to tweet about a » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin or ICO. According to the SEC, McAfee made $23 million for shilling ICOs.

Bitcoin chart from tradingview.com

Bitcoin price | Source: BTCUSD on TradingView.com

His arrest was not directly for shilling but it was a part of it. Since there were really no laws regarding shilling, the SEC had to go the route of tax evasion. Charges of failure to disclose income from the ICOs and routing his earnings through cryptocurrency to avoid paying taxes were brought against him.

McAfee was arrested on October 5th, 2020, in Spain at the request of the SEC. He is currently being held in Spain. His extradition has not been determined yet. With McAfee claiming he would die in prison is extradited to the States.

Elon Musk’s Tweets

This is not the first time that Musk’s tweets have been a problem. Back in 2018, the SEC requested that Elon Musk be held civil contempt due to misleading facts tweeted by the CEO about his company Tesla.

The tweets included things like claiming the automaker would build 500,000 cars a year. Also claiming that he had secured funding when he hadn’t. These tweets are said to have manipulated the stock price of the company.

Related Reading | Bitcoin Mining Council: We Need To Tackle Negative Media Narratives

In response to these, Elon Musk said that his tweets were part of his right to free speech. And that he was free to tweet whatever he wished.

The ensuing lawsuit led to the outcome that the CEO would have the freedom to use Twitter, with certain limitations. His tweets that are material to shareholders need to be reviewed before being allowed to be posted.

But cryptocurrencies are not included in the list of restricted topics for the billionaire. And so, he has taken to shilling coins on his Twitter account. His latest shilling project being the » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin Cumrocket which has absolutely no use case besides being a money-grab. The » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin rose over 70 percent after Musk tweeted about it.

There have been no legal steps taken against Musk regarding the tweets. This being that there are no laws that can be said to have been violated at this point.

Featured image from Robb Report, chart from TradingView.com

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/crypto/elon-musk-go-to-prison/

Blockchain

Ethereum: Are you wrong to expect ‘changes’ from London

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Ethereum is days away from one of the most important system upgrades since its inception. The London hard fork, the implementation of EIP-1559, is expected to completely change the monetary and economic model of Ether and its network.

These changes are expected to take place after the commencement of the hard fork on 4 August. However, there have been other changes too, each of which has transpired over time for the altcoin.

The issue of transaction fees

One of the most discussed changes expected out of EIP-1559 is that ETH’s transaction fees will become relatively stable. Any entity wanting to conduct a transaction on the Ethereum network is required to pay a “gas fee.” The same is to be paid in Ether, to miners, to process these transactions. During the 2020-2021 bull run, these fees skyrocketed.

Source: Ycharts

In fact, according to the attached chart, the transaction fee was as high as $71 at one point. However, that aspect might end up being tackled before the hard fork itself.

Over the past few weeks, the gas fees for ETH transactions have drastically dropped on the charts. Now, many have suggested that this was due to the bearish market.

Source: Spencer Noon

However, a contradictory argument is that DeFi applications are still rampant. UNI and AAVE registered strong on-chain performances over the past few weeks, and major functionality within these assets rely on the utility of Ether. For both June and July, the Ethereum network’s fees were already under the yearly average. Such a healthy fee market allows for a stronger security budget for Ethereum.

Investment and trading are not the only ways to profit from Ethereum anymore

ETH held on Exchanges

Source: Glassnode

A common bullish argument for Ethereum in 2020-2021 was the fact that it registered massive exchange outflows. Here, the inference was that hodlers were taking the asset out of centralized platforms and simply holding their allocation. It might have been true in late 2019 and early 2020, but right now, the playing field has evolved.

According to data, exchange outflows have definitely increased but the key point remains that more and more Ethereum is flowing into smart contracts. Further, ETH users are pursuing other opportunities to earn interest and yields.

The rise of yield farming and interest lending platforms has opened new avenues for ETH users. The reason being that they are able to earn capital without depending too much on a bullish or bearish cycle.

Changes are coming but, “change” is already here

The industry is evolving at a break-neck speed and Ethereum is gunning towards its massive upgrade. And yet, users should not be expecting ground-breaking changes. In fact, those who are might as well be ‘wrong’ to some extent.

Over the past few weeks, Ethereum has already been incorporating changes that may define its functionality and usage going forward.

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Source: https://ambcrypto.com/ethereum-are-you-wrong-to-expect-changes-from-london

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Bitcoin Cash, Cosmos, VeChain Price Analysis: 01 August

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With Bitcoin soaring up to $42,000 today, other altcoins pumped too. BCH was preparing to test its immediate resistance, ATOM hiked by 8% overnight, and VET flashed signs of an uptrend. 

Bitcoin Cash

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

BCH/USD, TradingView

Bitcoin Cash was trading at $554 on the back of a 2.1% gain over the last 24 hours. From the 4-hour chart, BCH depicted an upward movement towards its immediate resistance of $566. On failing to test the same, the prices could land near the $544 mark and then subsequently rest on $528. 

The Relative Strength Index despite noting a slight fall in buying pressure stayed well within the bullish territory. The green signal bars on the Awesome Oscillator depicted the presence of the bulls in the market.

Conversely, however, the MACD flashed red bars on the histogram at press time after a bearish crossover yesterday, although it was declining in size marking a reversal of the bearish sentiment on the indicator. 

Cosmos (ATOM)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

ATOM/USD, TradingView

ATOM displayed a considerable hike of almost 8% within a day. It alt was priced at $12.88 at press time. If it continued moving on the upside, the token might cross the immediate price ceiling of $12.96. 

If ATOM reaches the $12.96 mark over the upcoming trading sessions, it could expect strong resistance at $13.60. If the coin dips below its current price level, the support region lies at $12.00 and then eventually at $11.53. 

Overall technical outlook of ATOM remained quite bullish with the Relative Strength Index spotted above 60 despite a minor fall. Awesome Oscillator showed amplified green signals bars validating the same. 

Bollinger Bands widened suggesting chances of market volatility as prices kept touching the upper band. 

VeChain (VET)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

VET/USD, TradingView

VET had seen a period of consolidation a few days back, however, it rebounded from that and registered steady gains over the last few days. VET’s price at press time stood at $0.0913 as it recorded a 5.2% gain overnight. 

The technical analysis chart showed that VET witnessed a bullish trade, with the Relative Strength Index touching the overbought zone just 24 hours ago. At press time, however, the indicator fell below the overbought territory.

Chaikin Money Flow, over the last few days, registered increased capital inflows and was pictured in the bullish zone despite the minor fall in capital inflows at press time. 

Bollinger Bands opened up in anticipation of increased market volatility. With prices touching the upper band, the bulls might push the prices higher. The immediate resistance for VET lay at $0.93, failing to test that, the support region awaited at $0.0870 and then at $0.801.

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Source: https://ambcrypto.com/bitcoin-cash-cosmos-vechain-price-analysis-1-august

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What you should know about Paraguay’s push to welcome Bitcoin miners

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Of late, Paraguay seems to be offering Bitcoin miners exactly what they need and thus, it has emerged as the latest country many miners are migrating to.

China – Not the powerhouse anymore?

China’s wariness towards crypto is an open secret and so is its intention to drive most crypto miners away from the country. While China has historically been a powerhouse of the Bitcoin network, generating a huge chunk of its hash power, the recent crackdown on miners has fueled a migration.

While some chose Kazakhstan and the United States of America to set up shops, there is another country miners are now increasingly turning to.

Paraguay to the rescue?

Paraguay is home to two of the world’s largest hydroelectric dams in Itaipú and Yacyretá. In fact, it generates 100% of its electricity through hydroelectric power. What’s more, the country is also responsible for the generation of the most renewable electricity per capita in the world.

The damns generate nearly 8,500 MW of power, out of which Paraguay only consumes less than half while sharing the rest with Argentina and Brazil, among others.

This surplus can help miners choose Paraguay over any other location in the world. Benítez Rickmann, CEO of Paraguay-based mining firm Digital Assets S.A, shares this sentiment.

According to the exec,

“In China 6,000 MW were turned off and that coincides with what there is in Paraguay that has an energy surplus of 5,500 MW. It is very attractive for them.”

The road ahead

Right now, the country is welcoming eight China-based Bitcoin mining firms. Following the same, 500,00 machines will be installed in the country. One mining operation alone will set up 90,000 Bitcoin mining rigs, he added. In light of the surplus in electricity generation, miners and others might find some relief in mining Bitcoin with renewable energy in Paraguay.

On the legislative front, the country’s lawmakers are also working on a bill to regulate miners and attract foreign business.

Rickmann, an advisor to the aforementioned bill, is of the opinion that such efforts have been fruitful.

“The bill is designed for large mining companies to come to Paraguay. In China, 6,000 MW were turned off and that coincides with what there is in Paraguay, which has an energy surplus of 5,500 MW. It is very attractive to them. I have many names of companies from all over that are very interested in coming to Paraguay.”

This would be a crucial development going forward. Especially since Bitcoin hash power was hit badly when the Chinese exodus was in full flow.

As per data provided by Crypto Parrot, mining revenue surged by 179.4% over the last 30 days. Miners earned heavy amounts on 26 and 27 July with $36.49 million and $13.06 million, respectively. Furthermore, cumulative earnings were reported to be $841 million over the last 30 days.

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Source: https://ambcrypto.com/what-you-should-know-about-paraguays-push-to-welcome-bitcoin-miners

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