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EOS soars up by over 9% post SEC’s $24 million fine on Block.One

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Source: Pixabay

The United States’ Securities and Exchange Commission recently shared a press release that obligated the blockchain-based company and EOS.IO software developer, Block.One, to pay a penalty of $24 million following an unregistered initial coin offering of cryptocurrencies that the company initiated. 

The blockchain-based company had directed an ICO for a term of one year from June 2017, which went on till June 2018. The company has been driving operations in Hong King and Virginia, USA, raising billions of dollars during its ICO.

The Co-director of the SEC’s Division of Enforcement, Stephanie Avakian, further revealed that several investors from America were part of this ICO. She said,

“Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer.”

The token sale was initiated by the company shortly before the SEC released its DAO Report of Investigation. However, the company continued its token sale without registering its ICO.

Steven Peikin, Co-Director of the SEC’s Division of Enforcement, also proclaimed that Block.One had reserved information that investors of the securities offering were entitled to know. He said,

“The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”

Amidst this chaos, the seventh-largest coin by market cap, EOS, surged significantly, its price rising by 9.49% over the last 24 hours.

Block.One reacted to this by issuing a statement that insinuated that the SEC’s accusation were against the company’s ERC-20 token. The statement further explained that the company had agreed to pay the one-time fine of $24 million, while neither affirming nor dismissing the SEC’s allegation. The statement further read,

“We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policy makers as the world continues to develop more clarity around compliance frameworks for digital assets.”

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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Altcoins

Litecoin’s ailing price prepares for breach of descending channel

Namrata Shukla

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Source: Pixabay

Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.

Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.

Short-term

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.

The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.

Conclusion

Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.