New records of Bitcoin, Dogecoin, Ethereum
- Dogecoin drops 20% after Elon Musk’s performance on Saturday Night Live (SNL)
- Ashton Kutcher, Snoop Dogg, Mark Cuban, as many others, praise overmuch the value of Bitcoin and blockchain
- Ethereum continues to surpass Bitcoin due to money from retail and institutions flows into crypto
The investing world was taken by cryptos and digital assets in the last couple of months due to unstoppable records of new “alt-coins.” A lot of prominent people and celebs from every corner of the world, as well as various investors who pile up the rocks in the space, pay their attention to this. Everybody from Hollywood, from Snoop Dogg to corporate Americans like Elon Musk seems to be caught by crypto hullabaloo.
Many famous persons from the entertainment sphere opened an allure of a day-by-day increasing digital asset space. Gary “Vee” Vaynerchuk promulgated capabilities of digital assets like NFT and cryptocurrency for money-making for retail investors in recent weeks. Movie star, Ashton Kutcher, also praised blockchain tech on his platform in recent years. Sound Ventures, the company of Kutcher, was one of the early investors in coin Ripple (XRP).
Bitcoin, Ethereum, Ripple daily chart
Elon Musk’s activity didn’t inspire investors, and despite the businessman’s performance at Saturday Night Live, Dogecoin fell by nearly 20%. However, Elon isn’t a unique prominent man who advertises the utility and practicality of crypto. Such guys as Guy Fieri, Lionel Messi, Mark Cuban, and a lot of other celebrities around the world endorse crypto-mania.
The founder and CEO of Square and Twitter Jack Dorsey is one of the biggest fans of Bitcoin and digital assets. For example, Square bought 4.709 BTC in October 2020 on the sum of $50 million at that time. Also, to the company’s payment service “Cash App,” the ability to trading and paying with Bitcoins was added. Finally, Dorsey ran Square Crypto for financial help to cryptocurrency developers.
Not long ago, Mark Cuban announced on Twitter that Dallas Mavericks has started operating with Dogecoin and accepting season ticket payments in crypto. The billionaire said that he held different cryptos for years and only reinforced his portfolio of digital assets. Cuban also jokes that if Bitcoin grows to a value of $1 million, he will start a presidential campaign.
Despite the positive sentiments of retail investors, SEC and federal regulators take another view. The last week, SEC Chair Gary Gensler gave a floor on TV and said that investors should be protected better when investing in cryptocurrency. He also claimed about crypto assets’ origin that many coins are indeed financial credit documents that should be under the purview of the SEC.
Mr. Gensler said about the impact of social media on trading and crypto markets and emphasized on the impact of prominent people on individual papers and assets. He mentioned that we should upgrade and renovate rules to guarantee that claims of individuals and retail investors by the First Amendment could be done, but they must not delude people or manipulate both public and markets.
On Monday, a strict warning for investors about Bitcoin was done by the Division of Investment Management at the SEC. They said that Bitcoin is a highly speculative investment, and admonished investors should be attentive when dealing with funds operating with Bitcoin futures. In addition, the SEC alerts investors of high volatility and weak regulation in the sphere of cryptocurrency. The bottom line is whether Gensler and his fellows will promote the idea of some reform in this area or not because it can provoke some problems for investors. Do not forget that “defi” can be not so decentralized after all.
Although Gensler’s words for some individuals and the “pump and dump” character of digital assets were diffuse, Elon Musk, Guy Fieri, and other prominent persons who advertise crypto on social media should understand that warnings were addressed to them. All attention now is riveted on Washington to verify if Gensler’s expectations would cause any regulation in the sphere of digital assets.