This past weekend saw significant changes in the cryptocurrency sphere. First, Bitcoin suffered a tremendous corrective action, taking down other blockchain assets. Second, the cryptos initiated a rally that drove well into Monday, when Wall Street absorbed its own heavy losses.
But perhaps one of the most significant changes that may have long-term consequences is the Bittrex delisting announcement. One of the most popular exchanges for altcoin assets – particularly obscure ones that cryptocurrency investors have derided as “sh-tcoins” – Bittrex recently announced that they will remove 82 token wallets from its trading platform.
The move isn’t quite a shocker. Bittrex isn’t exactly Coinbase, which only deals with major, accepted cryptocurrency assets. Thus, the Bittrex delisting news was an inevitability. Too many of these low-level altcoins could be moved significantly with relatively little money. The potential for pump-and-dump schemes and other related fraud was vast.
That said, everything has its consequences. Here’s the good, the bad, and the ugly regarding the Bittrex delisting measures.
Bittrex Delisting: The Good
The blockchain markets needed an enema for quite some time. While Bitcoin and major altcoin tokens were based off of legitimate blockchain projects, too many people associated all cryptocurrencies with this revolutionary technology.
As a result, obvious scams such as BitConnect were allowed to succeed due to investor ignorance. This isn’t “Bitcoin’s fault,” so to speak, but Bitcoin hysteria allowed con artists to scheme otherwise rational people out of their money.
Bittrex Delisting: The Bad
While I’m all for cleaning up the blockchain, I’m against overreaching crypto regulation. Most of the problems that caused the Bittrex delisting were at the hands of illegitimate initial coin offerings, or ICOs. Now, the Securities and Exchange Commission (SEC) wants to crack down on all ICOs, or at least impose restrictions whereby only exchanges that register with the SEC can allow ICOs.
I’m not saying I don’t trust government, but I don’t trust government. One day, it’s ICOs; the next day, it could be a broader crypto regulation. The SEC deals with securities. In contrast, the IRS defines cryptocurrencies as property, and should be therefore outside the SEC’s jurisdiction.
Bittrex Delisting: The Ugly
Bittrex is a matter of personal choice. Yes, they brought in boatloads of bovine excrement, but it was indeed your choice whether you wanted to participate. I think people should have the right to choose what they do with their money, plain and simple.
The other concern I have is that the Bittrex delisting could discourage legitimate ICOs, and yes, they do exist! Due to these overreaching crypto regulation initiatives, we are penalizing companies from utilizing groundbreaking (and cost-effective) technologies.