Bitcoin rates soar amidst Securities and Exchange Commission regulatory warning

0
71

On Wednesday, the value of Bitcoin went past $6,800 despite warnings issued by Securities and Commission about endorsements by some celebrities for a couple of fundraising efforts based on cryptocurrency.

Reports from Market Insider data revealed that the highly coveted currency hit a great peak of $6,915 per coin. A price spike was stimulated by the announcement that a financial product that linked to bitcoin is going to be launched by CME, renowned Exchange giants on Tuesday. The coin’s value has appreciated more than 500% this year alone.

The increase in the value of the coin persisted despite the caution issued by the SEC concerning initial offerings of the coin, a fresh method of fundraising.

Autonomous NEXT, a firm of fintech analytics, revealed that ICOs have gained over two billion dollars this year. Some celebrities including Floyd Mayweather and others have in recent times endorsed projects carried out by the ICO. However, the SEC has responded stating that the fact the projects got support and endorsements by celebrities doesn’t necessarily mean that the investments are safe.

About ICOs

Countries like China and other states have esteemed ICOs to not be legal due to the fact that beginners and start-ups have used them to enrich themselves without revealing sufficient and credible information to investors.

The first guidance on ICOs were made available by ICOs in July. ICOs were described as securities by the financial watchdog as are therefore to be kept under strict laws and regulations.