Digital Coin: Cryptos Slide, ICOs Report Deception
DIGITAL COIN – On Friday, cryptocurrencies slipped in Asia. This followed after reports revealed the linking of a few of the initial coin offerings (ICOs) to frauds, plagiarism and implausible returns.
There was a drop of 4.47% to $3,594.6 seen in Bitcoin. On the Poloniex exchange, XRP slumped 10.17% to $0.33742. Meanwhile, Litecoin made a loss of 8.18% to $27.961.
There were 3,291 “white papers” of cryptocurrency projects which launched new ICOs that the Wall Street Journal analyzed. Moreover, the Wall Street Journal showed 16% of those papers committed plagiarism, identity theft and false promises of too-high returns. The white papers include informal information documents utilized to market ICOs.
Moreover, more than 2,000 of the white papers analyzed mentioned phrases such as “nothing to lose” or “guaranteed profit” as well as “highest return”, “high return”, “no risk” or “little risk.” There are 343 crypto projects which have an association with fake team members.
Regulators from the United States already dealt with ICOs and crypto-related investment products last August. Further, this was part of North American Securities Administrators Association’s effort. The regulator pursued investigations to more than 200 projects as of now.
“Investing in an ICO is like speculating in a highly promoted junior gold mining company where the prospect of finding actual gold is nil. There will be price volatility and plenty of promises made. But in the end, the investment is worthless. And it was always going to be worthless,” said Markman Capital Insight President Jon Markman.
Meanwhile, the Mizuho Financial Group of Japan expressed support on cryptocurrencies. Additionally, it is planning to launch its own digital token in March.
Digital Coin: Litecoin slips 11% in bearish trade
On Thursday, Litecoin traded at $27.477, lower 10.78% within the day. This was the largest one-day percentage loss of the cryptocurrency since November 19.
The downward performance dragged down the market cap of Litecoin to $1.689B, or 1.40% of the total cryptocurrency market cap. Further, the highest market cap of Litecoin was $14.099B.
Overnight, Litecoin traded in a range of $27.407 to $31.054.
For the past seven days, Litecoin experienced a drop in value with 12.55% loss. Litecoin’s volume was $441.555M or 2.79% of the total volume of all cryptocurrencies. Moreover, it traded in a range of $27.4072 to $36.3220 in the past 7 days.
Meanwhile, the current price of Litecoin is down 93.46% from its all-time high of $420.00 last December 12, 2017.